Evaluation of ERP software is a very challenging and tedious task. Organizations are very cautious because the ERP they chose has a long term impact on the organization and organizational productivity. A wrong choice can easily land an organization in a mess which they will find difficult to come out of. As people say 'ERP is like a marriage'; Once you start to use an ERP and have your Business Data on the ERP for some time, it will not be an easy task to switch over to another ERP.

1. ERP Evaluation Criteria
Evaluation of ERP software is a very challenging and tedious task. Organizations are
very cautious because the ERP they chose has a long term impact on the organization
and organizational productivity.A wrong choicecan easily land an organization in a
mess which they will find difficultto come out of.As people say 'ERP is like a marriage';
Once youstart to use an ERP and have your Business Data on the ERP for some time, it
will not be an easy task to switch over to another ERP.The heavy investments (more in
terms of organizational resources than the money) and the complexities associated with
the implementation make moving to another ERP an extremely tough decision. So there
must be a diligent process for evaluating ERP software.The evaluation process of ERP
softwareshould be properly defined and directed. An ERP selection process will
typically involvethe following:
1. ERP selection team: At the time of ERP selection, most of the companies follow the
procedure established by Chief Details Officeror IT Supervisor. In addition to CIO or IT
Supervisor, the ERP choice teams need to likewise comprise of practical heads, leading
management agents and actual users. An experienced and grew group can definitely
examine numerous suppliers for their strengths and weak points and make a much
better choice.
Scope of ERP Software:A great ERP package must have functionalities to satisfy today in
addition to future requirements of the company. Full scope of the ERP software
application ought to lay out practicalexpectations of all service department such as
Sales, Stock, Finance, Procurement etc. Itis very difficultto get an ERP Softwarewhich
matches yourrequirements 100%. Normally a 70% fit is thought about healthy enough.
Though during the demonstrations you might feel that a software application satisfies
your requirements 100% but that doesn't take place in real. Firstly since Organizations
are not very clear of the Requirements at the beginning stage. Second of all it is really
hard assess an ERP performance in a demo whichnormally lasts about an hour. For that
matter even if youhad a demo lasting 4 hours youwill not be able to understand an ERP
in that detail whichyounormally require. A typicalERP software application will have
the following performances:
Accounting/ Finance
Distribution
Manufacturing
HRIS
Material Management
Procurement
Customer Relationship Management
Graphical Dashboards now called as Management Dashboards
Some Reporting tool(Either integrated or 3rd party ones)
And other industry particular modules like could be a Transport Module, Fixed Deposit
Management and so on

2. There are several ERP packages available in the market, each having its own strengths and weak
points. Every package has its own idea, architecture and set of functionalities. Company need to
identify right supplier by examining many aspects such as the product's functions,
customization intricacies, execution success rate, cost, consumer references, post application
support, localand Worldwide existence and number of setups. ERP ought to also support
numerous locations, numerous companies, multi currencies and several languages( if needed).
TCO Analysis: When evaluating expenses, besides the ERP Package costlikewise include costof
future upgrades, application expenses, customization expenses, Supporting softwarelicense
costs( OS/Database and so on) and hardware expenses etc. Likewise think about the expenses
that you will incur overa 5 year window atleast. This willenable a fair comparison of a number
of ERP packages, along with specify the long term ROI. Organization should also clarify withERP
supplier for any unpredicted and hidden expenses that might emerge in the due course.
2. Combination with other Applications/Equipment: Apart from ERP,organizations use
numerous software application applications. An ERP might likewise be needed to integrate with
these applications like Mail server, Presence systems, ProductionEquipment, Weigh scales, Bar
Coding devices etc forexchanging data. Organizations ought to go over these problems with ERP
suppliers throughout the examination phase itself. These interfacing also may need interaction
of the ERP vendor with the manufacturer of these machines/applications toexamine if they will
be able to provide the information to ERP supplier in some computer readable format.
3. User Friendliness: A user friendly user interface of ERP softwareincreases the user approval
rate. During ERP demo organizations ought to checkhow easy to use the system is. They should
checkthe navigation structure, clicksneeded to open a function,drill downchoices in reports,
Graphical options etc.
4. Durability of ERP Implementation partner: ERP Application and support are a long drawn
procedures. Organizations may require regular support and assistance throughout the lifecycle
of ERP. This is where the durability of the execution partner plays a crucial role. It is crucialto
the check the business background of the ERP application Partner. Some concerns that company
ought to look forabout the supplier are:.
The number of years has the business been actively engaged in the software service?
Identify their core organization; ERP company must be one of their coreorganizations and not
one of their smaller businesses. Individuals frequently tend to hive off their smaller businesses
as the Economies of Scales do not validate for them to be in ERP service. In such a situation you
might frequently be left in the lurch. So youneed to have some Source Code arrangements like
Escrow or some exit path foryou if a Partner or the ERP vendor himself decides to shut store.
When was the ERP product launched in the market and what is the present release version?
Examine the client list relevant to your serviceand the consumer reviews.
Request Customer references. Attempt and visit their Client site though it may not be possible
for time restrictions in addition to the hesitation of Customers to showcase their ERP to a third
party. Plus forCustomers such site checkouts are typically a nuisance. Insist atleast on a Client
Referral from the ERP supplier.
Youneed to bear in mind that choiceof the ideal implementation partner is maybe more vital
than the choiceof the Product.Almost all Products willbe generally great and will have
performance conferencea sensible quantity of yourrequirements. It's the Partner's way of
application that can make the essential distinction. Some ERP business likewise execute

3. themselves rather than a Partner method. Both methods have their merits and demerits.
When you are in search of ERP Software,the most crucial indicate keep alwaysin mind is that
the software youare looking will end up being a lifeline of your organization. Its a tool that will
straight affectthe long term performance and efficiency of your company.So selecting that
should definitely be worthy of a large amount of attention from the right set of individuals in
your company.
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