ERP System Selection – Taking A Holistic Approach

ERP system selection choices

We’ve already spoken about ERP system selection. Likewise, we’ve covered the investment’s foundations. However, one article recently caught our attention. It proposes an innovative selection method.

Choosing ERP software is already complicated. Despite the benefits, you can negate many with poor decisions. Therefore, an efficient approach saves lives. That’s what you’ll learn today.

As always, we’re here to help. Our team is eager to answer all your doubts. Don’t forget to book your free meeting today!

Standard ERP system selection: What’s wrong?

Most companies focus solely on implementation. As surprising as it may sound, it’s not ideal. Implementation does little with poor selection. Unfortunately, current selection methods are too complicated.

Additionally, current approaches lack detailed models. They fail to provide a step-by-step outline. 

What we need for ERP system selection

Firstly, intuitiveness is crucial. Companies need straightforward approaches. It helps reduce research costs and time. Said methodologies prevail for vendors. As we always say, they’re part of the product. You must consider provider quality.

That’s what the study means by “holistic.” However, it also dives deeper into strictly ERP evaluation. Features aren’t everything. We must consider our entire organizational culture.

For instance, how does the software change our processes? That’s the kind of crucial question we mean.

What makes a holistic ERP system selection?

The study’s goal was simple. Essentially, it aimed to provide a holistic selection model. Simultaneously, it must be broad and intuitive. It links acquisition with organizational culture. The same goes for processes and infrastructure.

The article divides it into two focuses.

The framework

Firstly, we must link strategies and businesses. Strategic fit and functional integrations become priorities. As such, the model proposes four components:

  1. Business strategy.
  2. IT strategy.
  3. Organizational infrastructure.
  4. IT infrastructure.

If you’ve noticed the link, that’s great. Essentially, all processes relate to each other. Decisions in one affect the others. Similarly, your ERP system will affect all of them.

The process

Unfortunately, the model is quite complex and detailed. Again, make sure to check the study over here. However, we’ll summarize it below.

Fundamentally, it takes four stages:

  • Preparation.
  • Analysis.
  • Evaluation.
  • Selection.

Now, the steps also vary for three main branches. They’re strategies, organization/IT, and ERP/vendors. Each one has different aspects, processes, and considerations. Luckily, we can summarize the four phases:

  • Preparation means understanding. That goes for how strategies change and how ERP works. It creates a long options list.
  • Analysis is about assessing current knowledge. What do we know about the options? It filters your initial list.
  • Evaluation is revision. Therefore, it should result in proposal requests.
  • Selection picks the “winner” among these requests.

How can you ensure effective ERP system selection?

As usual, the best insurance is working with professionals. We’ve helped companies find the best software. Moreover, we also helped them integrate and maintain it. Luckily, our experience covers different industries and brands.

 

Even better, we offer free consultations! Don’t forget to book yours right here!

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