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Erp selection steps


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  • Used a similar methodology to select an ERP system. The result is the correct system was selected for the business. Implementation was hugely successful and on time and on budget!
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Erp selection steps

  1. 1. 10 Steps for successful ERP Selection
  2. 2. Step 1:Business Assessment • Why do we need an ERP system? • Explaining to the customer the basic requirement. • Eg. Management Info., Strategy Evaluation, Efficiency, Reliability, Cost Saving & Control, Infrastructure, Growth & Compliance
  3. 3. Step 2: Appoint a selection Team & follow a structured selection process • Who will make the decision? • Appoint regular member which will help from starting to completion. • Give the leadership to the someone who has knowledge of existing system & its problems.
  4. 4. • A team consist: 1)Sponsor 2)Project Manager 3)Procurement Manager 4)Senior Executive’s from: Budgeting & planning, Finance, IT,HR & from each operational department.
  5. 5. Step 3:Assess business requirements & resource constraints. • What do we need the system to achieve. • The team examines our business processes & prepare a list of needed requirements that must be present within the ERP. • Consider the functionality & also adaptability & responsiveness of system to avoid higher consultants cost.
  6. 6. Step 4:Determine Selection Criteria • How we will keep selection score? • Measure & How to grade the vendors. • Considering: Business Assessment, Requirement, Financial Strength, his Future Product Development Roadmap, Licensing Cost, or the extent to which vendor shares similar corporate values.
  7. 7. Step 5:Find Compatible Vendors • Who we will use? • Find Right Vendor for the business. • A vendor have thorough training approach, dedicated to training, coaching & monitoring our team.
  8. 8. Step 6:Communicate with Potential Vendors • How do we begin the connection? • Ask number of question , doubts that arises in our mind like: 1)What application area do you cover? 2)How many clients do you have? 3)Do you have structured implementation methodology?
  9. 9. Step 7:Create the request for Information (RFI) • How do we narrow down the competition? • Do some basic research to understand what is available on the market, taking reviews, Short listing two-three vendors & then focus on the areas that are critical to business.
  10. 10. Step 8:Shortlist & Demo System • Who are the finalist? • After narrowing down the selection process shortlisted vendors that understand & solve the problems, give the demo of the system they have.
  11. 11. • At this stage organization will ensure that the selected vendors understand our problems or not, whether its product is able to solve their problem, whether it will provide right service.
  12. 12. Step 9:Select our ERP system • Which s/w will get the chance? • Who will become the winner? • Who will become service provider?
  13. 13. Step 10:Formalise our project plan • After choosing-what is next step? • After selection next task is to initiate clientvendor relationship & begin the implementation process. • Finalizing service contract, license & maintenance agreement.