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ERP Selection Criteria

ERP Selection Criteria. POSMIT. Contents. Phases of ERP selection ERP selection criteria Market share ERP vendors with their pros & cons. Phases of ERP selection (1/2) . Study strategy and business process and decide to acquire an ERP. Phase 0. Search for candidates

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ERP Selection Criteria

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  1. ERP Selection Criteria POSMIT

  2. Contents • Phases of ERP selection • ERP selection criteria • Market share • ERP vendors with their pros & cons Postech Strategic Management of Information Systems Laboratory

  3. Phases of ERP selection (1/2) Study strategy and business process and decide to acquire an ERP. Phase 0 Search for candidates and first filter. Phase 1 Dig into the candidates and second filter. Phase 2 Analysis and demonstration of candidates and visits to the providers. Phase 3 Final decision, negotiation and planning Phase 4 Postech Strategic Management of Information Systems Laboratory

  4. Phases of ERP selection (2/2) • Phase 0: Study strategy and business process and decide to acquire an ERP. • Studies the business (mission, strategy, etc), business processes • Decide if the company has to acquire an ERP • Phase 1: Search for candidates and first filter. • Conduct a market research initiative looking for ERPs • Reduce the number of candidates • Phase 2: Dig into the candidates and second filter. • Obtain one or more interviews with the providers • Get as many fact sheets, catalogs, articles, etc., as possible • Select 2 or 3 ERP candidate solutions • Phase 3: Analysis and demonstration of candidates and visits to the providers • Phase 4: Final decision, negotiation and planning Postech Strategic Management of Information Systems Laboratory

  5. ERP selection criteria (1/3) Criteria Definition Included functionality Areas or functions of the company that the ERP has to serve. It is described how the ERP covers each function. Main target Functional area or areas for which the ERP is specially oriented or strong. Adaptability Possible level of customization in general and for the specific company Openness for • custom development • working with other systems Level of openness to additional bespoke development (internal or external) and to othe existing applications (e.g. API, CRM, SCM, etc.) Specifics supports E.g. Y2K, euro, ISO-9000, etc. • Functionality criteria Postech Strategic Management of Information Systems Laboratory

  6. ERP selection criteria (2/3) • Technical criteria Postech Strategic Management of Information Systems Laboratory

  7. ERP selection criteria (3/3) • Others • Cost • Are the license costs justified given the functionality offering? • Are annual maintenance charges reasonable? • How quickly can payback be received? • Service & Support • Can the supplier provide a complete turn-key solution? • How quick are non-critical software bugs fixed? • Does the vendor offer business process reengineering as part of the implementation process? • Does the supplier have industry experience? • Vendor longevity • How many years has the company been actively engaged? • When was the product’s first release? What is the current release version being quoted? Postech Strategic Management of Information Systems Laboratory

  8. Market share 2010 2005 Postech Strategic Management of Information Systems Laboratory

  9. ERP vendors with their pros & cons (1/3) • Logistics & Workflow • System Administration Postech Strategic Management of Information Systems Laboratory

  10. ERP vendors with their pros & cons (2/3) • Integration of Modules • Usability Postech Strategic Management of Information Systems Laboratory

  11. ERP vendors with their pros & cons (3/3) • Ease of implementation Postech Strategic Management of Information Systems Laboratory

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