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How to Select the Right ERP for Your Business

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Choice of correct software in resources planning plays an important role in success of any business. Need of every enterprise differs and hence, the required systems also differs. Effectiveness, scalability, integration, technical compatibility, required time of implementation, flexibility, price etc are some of the considerations to be examined in detail.

Before deciding ERP system for the enterprise, the entire internal processes, which would be integrated during the implementation of ERP system, should be reevaluated. The control and authority of the proposed system should be well defined.

It is advisable to carry on a detailed investigation and also take opinion of experts before zeroing in on a particular vendor. The organization can form a specialized team consisting of technical experts and departmental heads to decide about the software.

To select the right ERP for the business the following aspects needs to be considered -

Allocate enough time for selection procedure - Not allocating enough time for selecting appropriate software can be one of the biggest mistakes of system implementation. There are many different ERPs available in market which can provide solutions for different sectors/vertical markets. The ideal process requires allocating more than two to three months time for selecting appropriate ERP.

Understanding business and designing projections - The companies should make a business case and design the projection for system installation. The top management should be very clear about the required confidentiality in each section and flow of information among different sections after implementation of system. At times there may be need of redesigning some of the internal process and it should be planned before starting the process. The people of the organization should be given training to prepare to accept changes.

Defining needs to select the system - The business needs should be defined in a way to help in selection of the system, technical requirement and vendors. Many different vendors provide solutions on different technologies and one can even compare the performance with the cost offered.

Short - listing the software and the vendor - The vendors and technical capabilities should be evaluated. Enquire about the reliability of the provider and also find out about the capabilities of the technical team.

Buyer can ask for demonstration from the vendors and meet the technical team which will provide the service to ensure the capabilities of the vendor. During demonstration the company can also enquires about various customization needs and terms of service. Compare the evaluation to shortlist the preferred vendor.

Final Negotiation - Negotiating the deal is the last stage of software selection procedure when the buyer negotiates with the vendor about the cost, license, maintenance and implementation charges, and the buyer should always ensure that the business needs are met during demonstration and negotiation. The buyer can ask to get a demo of the customized product before actual implementation.

The ERP software should be complete with all the pieces to match with it. It should not alter the basic culture of the enterprise in big way. It should have flexibility for modification as per the requirements of the enterprise and it should also fulfill the future needs of the growing business.

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