Erp Implementation

Erp Evaluation

What You Should Consider For Erp Evaluation

Erp Evaluation

Erp evaluation requires an understanding of business and technical requirements to determine which solution offers the best functional fit within established budgetary parameters. With ERP vendors often courting potential customers with elaborate and lavish offers, it is easy to get caught up in the solution provider's sales agenda and loose sight of your organizational requirements. The following addresses some guidelines for businesses to follow when undertaking ERP system evaluation.

The ERP management evaluation team should comprise members from the business departments and the information technology departments. Members from the individual business units are better able to define the information flow and reporting requirements for their respective division. The information technology personnel are able to assess technical, architecture and platform clashes. This ensures that a balanced approach is followed to eliminate potential solution misfit.

Erp Evaluation

ERP evaluation standards should define the business functional and business requirements. One way to do this is to establish a balanced scorecard system. By outlining the requirements of each business division a comparison of different ERP solutions can be established to determine which one offers the potential to address the organizations requirements within the established budgetary framework.

Enterprise resource planning evaluation should also consider whether building from the ground up or purchasing an out of the box package offers the best solution. Scalability to accommodate an organizations growth, competitive advantage and functional change are criteria that need to be evaluated and considered. ERP vendors often charge significant fees for consultation and implementation. This also needs to be factored into the budgetary framework. If large scale consultation and support services are likely to be required, a company needs to make allowance for this and to consider the alternatives.

ERP evaluation should also consider whether packages can be purchased as 'stand alone' or modular. The modular implementation of units allows a company to rollout the solution in accordance with an implementation plan that fits in with its operational objectives. With the option to integrate customer relationship management, financial management, inventory management, manufacturing management and supply chain management, companies can prioritize objectives and select a solution accordingly. Staged implementation is often a superior solution for companies that have multiple business dependencies to minimize and manage risk.

ERP evaluation and implementation is a significant undertaking. The benefits of enterprise resource planning can increase business transparency and create significant cost and productivity improvements. Taking the time to effectively plan, evaluate and implement an appropriate solution can mean the difference between competitive advantage or solution misfit, cost and budgetary blowout. It is important to consider your options and select wisely.

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