Putting up your own business can be a turning point for you especially if you are unsure of what to invest and how much money you’re willing to spend.
But considering that you’ve established your start-up business, you tend to focus on your core business and forget about your front and back end transactions. Now this is the time ERP comes to a rescue.
Enterprise Resource Planning is the integrated management of core business processes often in real-time and mediate by software and technology. But how will you know if you have selected the right product and right vendor?
Here are six things to consider that can help you make a more intelligent decision:
#1 Objectives & Requirements You have to identify what are you trying to solve, and consider listing your requirements to avoid vendor marketing and get exactly what you need.
#2 Measuring ROI When figuring how you’ll measure performance be sure to consider differences between in-house and cloud ERP. While cloud ERP is often user friendly and may require less in-house staff to maintain, it also means sensitive data will be stored off site. Conversely, an in-house ERP may allow you to store sensitive data closer to home but doing so could require additional staff for system maintenance. Either decision can impact your IT culture and headcount.
#3 Demystify the Demo Do the salespeople spend time learning about your business, asking follow up questions about how you’ll use ERP, and voluntarily incorporate your goals in the demo. The demo you receive can be extremely revealing in terms of what kind of partner the vendor will be over the long haul; implementation, customization, and support.
#4 Checking References If a reference says nothing negative, be skeptical.
Potentially even more important is asking a vendor for something they’re not likely inclined to give; a list of companies that recently selected a competing ERP provider. It might not be standard practice to ask for this type of information. However, a vendor’s response to your inquiry might be extremely telling.
#5 Get the Real Price
Customization is crucial in squeezing every bit of value from ERP software. However, too much can result in major cost overruns and delayed implementation. Over customization can also result in higher upgrade costs. Unless a specific customization provides a competitive advantage or measurable benefit, consider saving the extra time and money custom coding often requires.
#6 Gauge Vendor Viability
For ERP providers that do not appear to be acquisition targets, it’s important to see their balance sheets so you can assess their financial strength and whether they’re likely to be around for the long haul.