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Factors to Consider When Choosing an ERP Software

There are so many ERP options that exist today such that selecting a package that works for one’s business can be a hard task. Most people think that any ERP software will be good for their companies and that the business will have to adapt to the system. This approach is wrong since it means that if the ERP software fails then the business processes grinds to a halt. An ERP is supposed to make the business compete better thus its selection needs to be carefully done.

The ERP is first a business initiative therefore the buyer needs to define the existing business processes, challenges and strengths that the business has. This analysis should also factor in the future business process and what things have to be met to get there. This information should inform the buyer on which ERP software to choose because it meets the business needs of the person.

Even though ERP should be a business as opposed to being a technology initiative it is still vital to comprehend how the potential software solution will fit in with the current technology infrastructure.

Another important thing to factor in is the cost of ownership. Most vendors during the ERP sales process downplay the costs and risks that come with buying their systems. However the buyer need to do their due diligence because it is easier to accept the potential cost earlier on before making the purchase as opposed to coming across them after making committing to a particular solution. The person needs to uncover these hidden costs that come with the ERP such as maintenance costs, software maintenance, back-filling on the project team and hardware upgrades.

Most vendors downplay the time required to implement the project thus the buyer needs to come up with their own implementation plan. This plan needs to include things like software installation issues and other things like functioning, testing the software and the acceptance by end users. This plan has to be created before the buyer agrees to buy the ERP machine so that they can be prepared for the cost of implementation. The plan needs to be full proof and thus it should include other aspects of the business process like the design process, the work flow process and other change management activities. By following the above tips anyone can make a good decision on which ERP software to settle on.

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