Selecting the right ERP software

Selecting and implementing a new software system can be quite overwhelming, what with the number of vendors vying for your dollars and the varying complexity of solutions on the market. The Technology Evaluation Center (TEC) has recently published an interesting Guide to selecting Process ERP Software. This guide examines why over 50 percent of implementations fail to meet functional and total cost expectations, and how these issues can be addressed.

In summary, TEC have found that project teams run into trouble for three main reasons:

• They have no effective way of identifying the critical vendor and product questions necessary to successfully initiate the evaluation process.
• Once identified, they generally do not prioritise the different criteria. As a result, final priorities are often the result of internal politics and not true needs and requirements.
• It is common for Vendors to exaggerate their capabilities, product and service if it enables them to move to the next phase of the deal. Project teams often do not have the ability to gather objective, validated, updated data on different vendor alternatives.

TEC advise organisations to create a structured, repeatable process for evaluating technology solutions and the vendors that provide them. Best practices drawn from TEC’s clients that have completed internal technology selections suggest that project teams examine five key categories of criteria, which investigate product-specific capabilities and the vendor's overall capabilities.

1. Product Functionality
As the primary stage in ERP software selections, this phase assesses the features and functions delivered by the product as it currently exists - i.e. what capabilities are available out of the box. Other criteria, such as service and support, corporate viability, and strategy, also contribute to software selection.

2. Product Technology
This phase defines the technical architecture of the product and the technological environment in which the product can run successfully. Sub-criteria might include application architecture, software usability, administration, platform and database support, application tools, workflow and document management, and reporting capabilities.

3. Corporate Service and Support
This set of criteria defines the capability of the vendor to provide implementation services and ongoing support. TEC have found that many industry surveys have identified this category as the single largest differentiating factor among potential selection options, as well as the greatest indicator of user implementation success and long-term vendor viability. Components of service and support might include consulting, systems integration, project management skills, geographic coverage and time coverage of the vendor help desk.

4. Corporate Viability
Crucial yet often overlooked, this category examines the financial and management strength of the vendor.

5. Corporate Strategy
The most strategic and long-term set of evaluation criteria, this phase evaluates the corporate road map and strategy of the software vendor with regards to specific timelines of how the product will be developed, sold, and supported within the process ERP software market.

We’re interested in hearing about your particular experiences in implementing new software systems. Please feel free to leave a comment or contact us on + 61 2 8080 4800.