MOSTAFA MAZEN MOIS 549 The ERP Selection Process Survival Guide Article from:

TOC Introduction What is an ERP System? When to Consider an Enterprise-Wide Solution? System Evaluation Solution Selection Key Points to Remember

Introduction Overview of Steps an Organization Goes Through for a Successful Evaluation Process Not an Easy Task All Steps are Important Knowledge and Communication are Key

What is an ERP System? Integrated Business System Provides Decision Support Tools to Manage and Grow Provides Easy Access to Needed Data in a Timely Manner Notifies the Concerned Personnel of any Data Change, Enabling Them to Act Accordingly

When to Consider an Enterprise-Wide Solution? Duplication of Effort to Get Vital Data Setting Inaccurate Customer Expectations Missing Promised Delivery Dates Unknown Operations Performance Current System is Hindering Growth Inaccurate Production Requirements Forecasting Fast, Uncontrolled Growth Unknown Exact Financial Information Inaccurate Job Costs Inconsistent Inventory

System Evaluation Select the Best and Brightest Employees for a Cross- Functional Evaluation Team. Appoint One as a Leader to Report the Progress to the CEO

System Evaluation Team Members Must Learn Reasons and Conditions for Needing the System They Should Know What the Final Solution Should Look Like Each Member Needs to Inform the Rest About the Functional Area they Represent

System Evaluation Assessing the Company Resources:  Personnel  Technology  Workflow  Performance Measurement

System Evaluation Identify the Elements Required to Meet the Company’s Goals:  Current Business Approach’s Limitations or Problems  The Business Core Competencies (Competitive Edge)  Requirements for a Solutions Partner (Implementation, Features, Functionality, Service, Tools, Customer Service, and Support)

System Evaluation When Evaluating and Selecting the ERP, Identify the Most Important System Functionality

System Evaluation Industry Specific vs. Generic? Scalability? Configurable? Flexibility and Cross-Platform? Functions and Features Availability? Additional Items

Solution Selection Review Potential Software Products Eliminate “Unfit” Packages Final Review List of 3-5 Vendors Schedule Detailed Product Demos Visit a Similar Customer of the Vendors Check Vendor’s References

Top Management Key Points to Remember More Information Increase Productivity Improved Business Processes and Organizational Change CEO Effective Involvement is Essential CEO at Arm Length from Daily Details Implementation Time is Underestimated Hardware Upgrade is Recommended Support Staff Needs Training Internal Costs Close to External Costs Software Hardware Consulting Training Opportunity Cost

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