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Enterprise Resource Planning (ERP) is an integrated business process management software system used to consolidate a company’s functions into a unified system. ERP technology helps businesses better access and manage data, enhance productivity, improve communications and make data-driven decisions. An ERP system covers basic business processes from financial accounting and supply chain management to inventory management and customer relationship management. ERPs have been adopted by businesses of all sizes.
Checklist
Ask these basic questions from Ultra Consulting when researching an ERP system.
1. Features & functionality
Does the software meet the future state industry and process needs of your business? Will your users find the software intuitive and easy-to-use? Does the software have advanced industry functionality to support your dynamic business needs?
2. Vendor synergy
Does the vendor understand your business? Will they stay up to date on industry trends? Do they have the necessary experience in your industry? Do they listen to your questions and concerns? Do you matter to them? Do you like them both on a personal and professional level?
3. Solution agility & viability
Is the vendor invested in this product solution? Will the software be a part of their service offering for the long term? Is the product or company a target for acquisition or divestiture? Will the software capabilities be able to stay ahead of and cater to your future needs?
4. Technology alignment
Does the platform fit within your technology roadmap? Is the company following industry standards for current and future integrations? Are the right competencies available for this platform? What is the company’s plan for long-term support and administration services? Will it be a hosted, cloud-based or on-premise solution?
5. Total cost of ownership
Are you able to forecast the investment for the long term? Do you feel you have a complete understanding of what happened during contract negotiations and the resulting agreement, including information about: software licensing costs; enterprise software implementation services; annual maintenance; subscriptions; and upgrade costs, including services/support, software integrations and services.
Additional questions to ask
Third Stage Consulting Group suggests asking these pointed questions before you sign on the dotted line for an ERP system.
- Ask to speak to references, preferably in your industry, size and with some of the same challenges you have.
- If a company says, “Yes, we can do that,” ask them to demonstrate that capability.
- Find out which functionalities require customization.
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