Selecting the Right ERP System 2000 Version 1, Published by Enzweiler Group, Atlanta

 How to Select the Right ERP System An enterprise that selects an ERP system is selecting more than an ERP system. Selecting an ERP system that satisfy the requirements Vendor ERP System Implementation Services Life Cycle Services Selecting an ERP system that fits within the budget Acquisition Implementation Life-Cycle

Selecting an ERP system that satisfy the requirements Vendor 1.ERP System as the Vendors’ Product 2.Implementation Services 3.Life Cycle Services 4.Size 5.Long Term Viability

Vendor RequirementsInformation Vendor has an ERP system that satisfies the enterprise’s requirements Vendors’ target markets by industry Vendors’ target markets by enterprise size Vendor and/or partner(s) offer the implementation services that satisfy the enterprise’s requirements Implementation services offered by vendor and/or by partners Vendor and/or partner(s) offer the life cycle services that satisfy the enterprise’s requirements Life cycle services offered by vendor and/or by partners Vendor is an acceptable sizeUnderstand the differences between Tier 1 vendors, Tier 2 vendors, and Tier 3 vendors Vendor’s long term viabilityVendor’s financials Forecasts of the vendor’s future viability from: Enterprise’s managers and knowledge workers, and/or ERP systems industry analysts, and/or IT industry analysts, and/or Investment analysts Evaluating Vendors Table

Selecting an ERP system that satisfy the requirements Vendor ERP System 1.Integration 2.Functionality 3.Tool Set 4.Alignment with IT Infrastructure

Integration RequirementsInformation List of the enterprise’s required systems ERP system integration specification. The ERP system integration specification can be for all of the required systems or for some of the required systems. If the ERP system integration specification is for some systems, then complementary systems will be required. Number of systems integrated into the ERP system Complementary systems Evaluating ERP Systems Table

High Level RequirementsInformation Country or countries in which the strategic business units comprising the enterprise are located ERP system has multiple currencies, has multiple languages, and complies with the rules and regulations for each country in which the enterprise has a strategic business unit Enterprise size defined by the number of strategic business units comprising the enterprise Strategic planning system has the planning, budgeting and financial reporting functionality to satisfy the consolidation requirements of multiple strategic business units Industry in which the enterprise competes, or Industries, if enterprise is comprised of multiple strategic business units Supply Chain Planning System has the functionality to satisfy the industry requirements, and the multiple strategic business requirements Closing time requirementsTransaction Processing System has the functionality to satisfy closing time requirements Required decision support systemsDecision support systems integrated into the ERP system Required transaction processing systemsTransaction processing systems integrated into the ERP system Required master databasesMaster databases integrated into the ERP system Required transaction databasesTransaction databases integrated into the ERP system

Tool Set RequirementsInformation Decision support system’s configurator skillsets Tool set used to develop decision support systems can include: data warehouses, reportwriters, queries, spreadsheets, system development tools Transaction processing system’s configurator skillsets Master databases integrated into the ERP system Required transaction databasesTool set used to develop transaction processing system can include: rules, web broswer forms, graphical user interface forms, system development tools Enterprise database’s configurator skillsetsTool set used to develop the enterprise database can include: tables, data dictionary, security, database administration, data warehouse administration, relational database management system Interfacing complementary systems, only if complementary systems are required Tool set for interfacing complementary systems can include: application program interfaces (API’s), system development Evaluating ERP Systems Table

Alignment with IT Infrastructure Requirements Information Web browser user interface and graphical user interface vendor(s) Tool used to develop views for decision support systems and forms for transaction processing systems Data warehouse vendor(s) Relational database management system vendor(s) Operating system vendor(s) Centralized/distributed strategy for decision support systems Data warehouses used for distributing and consolidating decision support system, or Central enterprise database used to satisfy multiple site decision support requirements Centralized/distributed strategy for transaction processing systems Transaction processing systems capable of supporting shared services transaction processing for multiple sites, or Each site has their own copy of transaction processing systems

Selecting an ERP system that satisfy the requirements Vendor ERP System Implementation Services 1.Implementation Workplans Life Cycle Services 1.Life Cycle Requirements 2.Life Cycle Responsibilities 3.Life Cycle Service Requirements

Evaluating Implementation Services Table Implementation Services Requirements Information Implementation objectives Implementation strategies Implementation workplans Implementation services proposals Educators qualifications Consultants qualifications Evaluating Life Cycle Services Table Life Cycle Services Requirements Information Responsibilities for implementing best practices, systems and new releases Responsibilities for learning new skillsets Responsibilities for configuring the systems integrated into the ERP system Life cycle service requirements Life cycle services proposals

Selecting an ERP system that satisfy the requirements Vendor ERP System Implementation Services Life Cycle Services Selecting an ERP system that fits within the budget Acquisition Implementation Life-Cycle

Evaluating ERP Systems Costs Table Acquisition Budget CategoriesCost Information Teams for selecting the ERP systemEnterprise’s managers and knowledge workers staffing the teams Backfill staffing for the enterprise’s managers and knowledge workers staffing the teams Licensing the ERP systemERP system pricing strategies, price quotes, and licensing contracts Licensing complementary systems, as required Complementary system pricing strategies, price quotes, and licensing contracts

Life Cycle BudgetCost Information Life cycle responsibilitiesEnterprise’s managers and knowledge workers with the life cycle responsibilities Life cycle services proposals ERP system maintenanceERP system annual maintenance fee Complementary system maintenanceComplementary systems annual maintenance fee Implementation Budget CategoriesCost Information Teams for implementing the best practices and systems integrated into the ERP system Enterprise’s managers and knowledge workers staffing the teams Backfill staffing for the enterprise’s managers and knowledge workers staffing the teams Education for the teamsEducation services proposals, contracts Education for usersEducation services proposals, contracts ConsultantsImplementation services proposals, contracts Travel for Educators and consultantsImplementation services proposals, contracts Evaluating ERP Systems Costs Table