The classic route to buying ERP software
1. Budget approval
When purchasing ERP software, the proposal to perform an ERP implementation project can be triggered by anyone in projects control management system saudia. But whether it’s an operations manager who noticed too many issues on the ground floor, an IT team who recognized room for improvement, or a CFO looking greater visibility into its financial performance, the first step usually taken is to create a budget.
The problem
Once you contact an ERP vendor about price estimates. projects control management system saudia recognize your search for an ERP as a great sales opportunity. So sales reps from ERP vendors will often give you an understated number based on your business needs. Hoping that a lower price might entice you to buy ERP software from them.
What to do instead
First, research the general list of ERP implementation costs, including software fees, maintenance fees, hardware fees. And implementation services. There are many ERP pricing guides and models from ERP consulting groups and trusted sources such as Gartner. Which can be easily found through a Google search.
2. Define requirements with an RFP
After consolidating a list of organizations’ current challenges and bottlenecks. You will create a request for proposal (RFP) outlining the objectives and scope of the ERP project. Most often, the project manager will use an RFP template designed for ERP implementations. The RFP template will contain a very long list of requirements that you will need to assess. Check off and prioritize. Once you have completed the RFP template and thus determined the scope of the project. It is ready to be sent to ERP vendors to solicit bids.
The problem
Using an RFP template can quickly lead to scope creep before you’ve even launched your project. What often happens is that the person completing this RFP template will tick “yes” to many more requirements than necessary. It’s very easy to get overwhelmed and distracted by the many features that advanced ERPs now offer. And so it’s much more common to say “yes” rather than “no” to a forward-looking feature.
What to do instead when buying ERP software
Instead of creating an RFP based on specific software features, create one based on a list of specific goals. You want to achieve when creating a new solution.
Make sure these goals follow the projects control management system saudia basic framework of SMART goals: specific, measurable, achievable, relevant, and time-bound. Be sure to remove any general requirements that cannot be properly measured.
3. Sending calls for tenders to software publishers
Once the team approves the RFP, they will send it out to many ERP software vendors. This can be a long list of suppliers if the company does not already have. An idea of the options available.
The problem
It is inevitable that ERP vendors will want you to buy ERP software from them. Even if there is hardly any match. Vendor sales reps will sometimes describe features using a loophole that will always convince you. That they meet your RFP requirements. If there is an adjustment, even remotely, ERP vendors will do their best to tick. As many boxes as possible on your RFP.
What to do instead
It all comes down to specifying very specific goals and requirements for your ERP project. To do this, work backwards. Instead of waiting until implementation is complete, prepare your scoring rubric with quantitative numbers. Before the project even begins and use it to write your RFP, if you choose to use one.
4. Software demonstrations
Once your team narrows down to a handful of potential solutions, you need to evaluate them in detail and perform a thorough comparison. The common approach is a demonstration of the software presented by the solution provider using either your company data or industry data.
The problem
ERP software demonstrations last between 2 and 24 hours; the demo is often longer when there are many optional components and add-ons in your solution. When you see multiple demos, you’re more likely to choose the most entertaining and compelling speaker-backed solution, not the solution best suited to your needs. .
What to do instead
Working with ERP consulting firms that offer multiple solutions allows you to design just one solution that can be added to or modified to suit your goals. ERP consultants are experts in popular ERP options and, combined with their years of experience are able to select and design a solution that best suits your goals.
5. ERP Selection
After weeks of sending out RFPs, communicating with ERP vendors, and watching software demos, the time has come to select and purchase ERP software.
The problem
As a reminder, it is almost impossible to gain a thorough understanding of a new management system through a few demonstrations. But most importantly, its particular fit with business processes, limitations, needs, and long-term goals.
What to do instead
Again, the benefit of partnering with an ERP consultant in this step is that they are able to share their advanced knowledge of ERP solutions. Unlike ERP vendors, ERP consultants do not receive a commission for the sale of a certain software.
6. Design the implementation
The problem
When you first purchase ERP software and then design the details of the solution, you are moving forward with significant limitations and a “work with what you have” approach. There may be a solution more suited to your industry and organizational processes.
What to do instead
To solve the problems of this late stage, you must start at the beginning of the project. Select an ERP partner that starts with solution design rather than software selection. Although it may be more expensive and time-consuming upfront, it greatly reduces the chances of an ERP project failing.
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