The document discusses important factors to consider when finalizing an ERP system. Key factors include checking the number of previous successful ERP implementations by the vendor, getting feedback from existing clients, ensuring the ERP covers all needed modules, understanding the vendor's future plans and support, assessing implementation costs and timelines, and evaluating the vendor's experience and confidence in their system. Conducting thorough due diligence on these factors is important for a successful ERP selection and implementation.

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What to keep in Mind while finalizing an ERP?
1 No. of ERP Implementations done by Vendor
Many new companies come into the market and claim that they have an ERP which is new and better
from all others in market. This is a complete wrong logic for selecting an ERP. A client should not
become a place for 1st experience for the ERP. Always trust on an ERP which has many organizations
already working on for minimum more than 1 financial year. This will give you the assurance that all
processes are in working conditions and the ERP has gone ahead with the test of time, errors, bugs etc.
2 Feedback from existing ERP clients of the Vendor
Before finalizing an ERP its important that you talk to some clients of ERP Vendor. A vendor who is
confident of his ERP will not hesitate to give you contact details of his clients for real feedback. All the
clients of ERP Vendor might not be using the full ERP because of their own reasons so it's better to take
the contact details of the clients from the ERP Vendor where they have successfully implemented the
ERP.
3 Total Modules of the ERP provided by the Vendor
A solutions which centrally automates and covers all the departments and processes of an
organization can only be called ERP. Before finalizing it should be
checked that the ERP is actually covering everything for which it
is meant for or not. Incomplete ERPs will obviously not be able to
automate all the processes.
4 Future Plans of the Vendor with the ERP
Once an organization starts working on an ERP it's really very
difficult to roll back to old manual working or migrating to a new
ERP. Hence it's important that the vendor who is providing the
ERP should have a long term vision and plan for satisfying the future needs of the organization.
5 Cost of Ownership incurred by Client
ERP Implementation is a huge process where various levels like Installation, GAP Analysis,
Customization, Data Entry, Staff Training etc. are involved. Before finalizing, the time needed for GO
LIVE of the ERP should be checked and it should be analyzed that how much manpower and support
the vendor is providing the client for a smooth and quick Implementation. A very long implementation
process brings lack of interest in the staff and indirect expenses for the organization.
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6 Implementation Plan of the Vendor and Payment Installments accordingly
The Payments for ERPs always have to be on the basis of milestones and in installments accordingly.
Clients have to understand the charges of AMC, Customizations, additional onsite support after
implementation etc. while purchasing the ERP to avoid confusions and confrontations later.
7 After Sales Support
Once the ERP is successfully Implemented, then also constant
support from the vendor is needed in terms of training to the
new people joining the organization, customizations and
error handling. The ERP Vendor should have a constant
support cell that can give support to the clients as and when
needed and also develop new processes if required. Good
ERP vendors keep a documentation system in place so as to
keep track of every issue raised by the client and the timely
solution provided to the client for the same.
8 Data Security
Since all the data from all the departments are managed into ERP Security of that data is of prime
importance. Security of Database should be managed on the server. The ERP should have proper
management of user rights so that details cannot leak out to wrong hands.
9 Resources Required to run the ERP
The client should have or should be ready to invest in all the resources like servers, additional
computers, proper network architecture supporting licenses, qualified staff/ERP Manager etc. ERP
Vendors usually do not provide hardware interfacing devices like bar code scanners, time and
attendance machines and I Cards etc. these things will have to be additionally purchased by the
clients. The ERP however should have the features of integration from all these hardware.
10 Experience and Confidence of the Vendor
ERP are a wonderful example of use of technology to make life easy and in business terms reduce
efforts and time to generate better results and profits. Before finalizing an ERP the confidence of the
ERP Vendor in his system and his past experiences with all his ERP Clients have to be discussed as
that is the foundation for a successful ERP Implementation by him.
-By Karan Garg, Chief ERP Architect
(IFW Techno Creations Pvt. Ltd.)
karan@ifwworld.com
0 93144 09691
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