Three areas to consider when reviewing ERPs
Evaluating software providers can be a daunting task, especially when the software you are considering is an Enterprise Resource Planning system. After all, you are going to count on this system to track customer information, provide business insights, and keep the company in compliance with accounting rules and regulations. If finding a solution that meets these basic requirements is all that you are after, then this post may not be for you. However, if you are interested in really understanding the criteria that will help your ERP implementation be a success, then read on!
Three areas to consider when reviewing ERPs.
Criteria #1 – Understanding the Infrastructure: One of the most basic criteria for a solid ERP implementation is determining whether the solution can be supported by your IT environment. This seems to be a basic idea but many times IT departments aren’t consulted until after a decision has been made. If the solution is not compatible with the existing environment, the project team will be sent back to the drawing board. It is wiser to involve IT upfront in the initial discussion with the vendor and save the team from any unnecessary setbacks. The following are some infrastructure questions you may want to consider when learning about the required environment:
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Is this an “in-house” system or is it Software as a Service (SaaS) model?
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Can the system be customized to meet specific functional and operational requirements?
Criteria #2 – Software updates: With the ever changing regulatory environment, ERP systems can quickly become obsolete and not in compliance with the latest regulations, unless they are updated regularly. This should be particularly concerning to software companies. A system that is not updated to address changing rules over revenue recognition for software companies will be a hindrance to growth. Project centric businesses need professional services software solutions that will help them react to any changes within VSOE compliance, GAAP polices, and future ISAB and FASB rules. At the end of the implementation you need a system that justifiably claims to be the best resource management software and supports that claim by staying updated with the latest rules. The following are some questions you may want to consider:
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Does the ERP system comply with all of the latest compliance regulations like SOP 97-2 and other accounting regulations?
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When compliance requirements change, how frequently are updates released?
Criteria #3 – Project and System Support: You want to consider a product that is intuitive and easy to use. However, you should also inquire about the support you will receive during project implementation and once the ERP system is up and running. Since an ERP is a long term investment, it is wise to look for a partner, not just a software package. This approach will help you find a vendor that is focused on your operational integrity, not on making easy money. Some things to consider include the following:
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What is the background of those helping to implement the ERP? Do they have industry experience?
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What services are considered extra?
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The right ERP system can help your company move to the next level. Project teams that are evaluating both vendors and systems should thoroughly understand the above mentioned criteria before they settle on a final vendor. At Bi101, we have experience with both ERP evaluation and system implementation. We would be happy to consult further with you about other planning and implementation areas you may want to consider.