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Factors to Consider When Choosing an ERP Software

There are so many ERP vendors out there such that choosing a good ERP software is quite challenging. A lot of buyers normally pick a system and then adjust the business operations to match that of then software. This approach is wrong since it means that if the ERP software fails then the business processes grinds to a halt. An ERP is supposed to make the business compete better thus its selection needs to be carefully done.

The ERP is first a business initiative therefore the buyer needs to define the existing business processes, challenges and strengths that the business has. This assessment needs to also look into how best the business can operate optimally in the future and what need to be done to get there. This information should inform the buyer on which ERP software to choose because it meets the business needs of the person.

Fundamentally the purchase of an ERP software is a business process but this does not negate the fact that the person needs to know how the software solution will fit into the existing technology framework.

The other important thing to factor in is the total cost of ownership. Many vendors have a habit of downplaying other costs that will come about after buying their ERP software. This calls upon the buyer to conduct proper research on the ERP software before buying it so that they know all then ins and outs of the software thus they can ask the vendor information on these future costs before they buy the ERP software If the buyer does their due diligence then they will be able to spot other extra costs like software maintenance, hardware upgrades, familiarization of the project team with the software and other things.

The person also needs to develop a realistic implementation plan because in the sales cycle the vendors might give an unrealistic implementation duration estimate. There are various factors that need to be included such as issues to do with software installations and other issues like proper functioning, testing and acceptance by users. This plan has be available even before the buyer gets the ERP software so that the buyer has a realistic estimate on the cost of implementation. The implementation plan should include every nook and cranny of the business process and the design of the work flow to other aspects like data migration, multiple test iterations, conference room piloting and other key organizational change management activities. By sticking to the points discussed above the buyer can make a logical decision on which ERP software is good for their business needs and will help them have a competitive advantage.

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