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How to Select the Right ERP for Your Business

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It appears to most that buying and implementing new software is day's business but if software happens to be ERP it will require a huge effort in terms of cost and time, and, selection of right ERP to suit the business is also very crucial. There are 2-3 major players in the ERP market who share the chunk of the market but overall it is estimated that more than 70 ERP solutions are available in the market with different facilities and problem focus. ERP software has impact on every department of the organization and processes, which makes selection of ERP even more crucial because ERP more inclined towards the solutions to the problem areas will get easily adopted by the organization.

Forming a project team for the purpose shall be the first step and a very careful one as team shall represent all the departments so that no area of the organization shall remain untouched and unheard. Proactive managers with sufficient experience and skills shall be given priority. Later on, task shall be assigned in the form of steps to this team with deadlines and clear depiction of objectives of each and every step those are to be achieved.

Developing an "as is" document shall be the first step taken towards selecting the right ERP for your business. As is document explains all the processes and workflows in details and the reasons of it, eventually this gives a complete picture of the organizational working at present. The problem areas shall be chalked out to set up a benchmark for right ERP, the ERP software which does not provide solutions to all the problem areas cannot be a right ERP for your business. After identifying the areas those need solutions identifying the areas which may need improvements for better working shall be explained in the document. The document containing problem areas and details of those areas which are lined up for improvement or considered as slowing down the organization's growth is called as "to be" document.



Analysis of different solutions in the market by their clients, feedback about the ERP quality and services and the age of ERP shall be done. Avoiding getting inclined towards any particular ERP because of its brand or used by the competitors shall be avoided. Short listed ERP vendors shall be called for demonstration in front of the whole team and demonstration should be specially designed according to the "to be" document. Demonstration shall explain the solution to the problem areas and ways of providing them, as well as, plans and strategies to improve the slow processes of the organization. This will give a crystal clear picture that which ERP caters to the needs of the organization in the best possible way.

Special importance shall be given to the level of customization ERP will need to suit to the requirements of the organization because too much customization casts negative impact not only on the implementation process but also on its smooth and problem free operation at later stage. Cost of ERP shall be deeply analyzed by including all the hidden costs involved in the process including cost of customization and add on tools. This are some of the effective tips on how to select right ERP for a company or an organization.





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