Selecting an ERP Solution

ERP selection

Whether you call them RFIs, RFPs, RFQs* or some other acronym, and whether you are a vendor or a customer, those three letters conjure up the same impression in many minds – pages and pages of detailed questions about a software product’s functionality, which takes weeks to create, days to respond, and weeks again to review.

Frankly, no one likes these documents, but businesses evaluating ERP software keep producing them, and vendors keep responding. Isn’t there a better, more efficient, ‘leaner’ way? According to one view:

“Regardless of how many consultants a client uses to select software, many would have been far better selecting out of a hat.”

The people who see value in ERP selection documents are the consultants whose job it is to create those documents. I know of cases where the client didn’t really understand the reason and the purpose of several questions. I have also been on a project where literally hundreds of selection questions were used, but once the implementation started those questions – and the answers – were effectively forgotten.

The now undeniable truth is that the selection of software plays little part in the final success or failure of an ERP project. What makes the difference during selection is addressing the real questions.

If those questions can be answered, here is an alternative process for selecting an ERP system:

The result of this process will be a few vendors with proven understanding and experience, who can then be engaged in more detailed negotiations. You might also ask these vendors to summarize in writing how their proposals address your key requirements. The vendors who understand the business issues should not only do a good summary but may also give you additional ideas you hadn’t thought of.

The key point is – don’t sweat the small stuff; avoid getting into too much detail on small issues of functionality. Focus on the important issues of the business and how the ERP software will allow you to improve them. No ERP system will address every single requirement perfectly, so make sure the ‘must have’ requirements are met.

If you’ve had experience selecting an ERP solution, drop us a comment here.

* RF = Request For. I = Information. P = Proposal. Q = Quote

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