ERP software selection

By
Indah D Lestantri

Objective
To highlight the issues in selection an ERP
software
To learn the guidelines in ERP software
selection

Vendor ERP software

The first : SAP
oracle, BAAN. JD Edwards,
Open source ERP software

Issues in ERP software selection

simple

Various component

complexity

Cost is high

Resource people

ERP

difficult

Various reason that make the ERP

Lack of clarity about the customers requirements
Complexity in the business processes
Increased number of ERP vendors
Lack of better planning
Resistance to change
Project cost
Integration, upgradability, adaptability and
applicability of software

ERP software selection criteria

ERP implemented in organization
Implemented of ERP is various ( smalla,
medium, or large)

Factors to consider while choosing

of ERP product
Increased transparency and better
information flow
Easy maintenance, adaptability and
flexibility of software
Reduced cycle time and lead time
Process improvement
Enable with multi lingual and multi
currency features

Factors to consider while choosing

of ERP product (2)
Increased customer satisfaction
Modular architecture of software
Higher software reliability
Market position of vendor
Implementation of desired business
processes
Operating system independence

Methods in ERP selection

The decision is made by top management with the
inclusion of external consultants
There is a centralized type of selection process in place,
characterized by a strong focus on the IT and
organizational department with only little participation of
other internal departments and no employment of
consultants
The decision is made taking into considerations the
suggestions given by several departments of the
organization whether they are going to be a user of the
ERP system or not
Using a combination of all the three steps given above
as when there is a need

ERP software selection process

Phase 1 : Initial requirements
Phase 2 : Developing the short list of
candidate solutions
Phase 3 : Final selection
Phase 4 : Implementation planning

Phase 1
We want to get to know our team, plan
and discuss the big project
We administer a series of quistionnaires
and conduct interviews with our project
team

Phase 2
This phase help us establish a list of high
level differentiators.
We compare the candidate solutions
We analysis of qualitative factors

Phase 3
Final ERP software and vendor selection

Phase 4
Every software vendor has a plan to make
their implemented succeed
And after going through the first three
phases, they will have a better
understanding of their business
processes.

Important factors influencing the

ERP vendor selection
Functionality of ERP package (24%)
Vendors reputation (26%)
Vendors ability to provide a complete
solution (16%)
Project costs (23%)
Future software maintenance provided by
the ERP vendor (11%)