There are many ways to evaluate ERP software because every organisation has different needs. But there are some basic principles you can apply to help you avoid a bad deal.
Here are five tips that could save you a lot of heartache and money:
1. Always get a reference
Seems like an obvious move, but the secret is to get the right references. For example, when you're looking for accounting software, ask the people who really know about it; accountants. Also ask the prospective vendor for references. If their software does what they say it does, they'll be happy to supply you with a range of references.
Of course, it's not only external references that are important. Remember to consult key users within your organisation. They know what works and what doesn't, so their input is vital.
2. Analyse your total cost of ownership over a five-year period
Be careful of vendors who bill extra for support services and large, expensive teams of skilled experts to deploy your ERP system. Choose the vendor who gives you the lowest total cost of ownership over five years through streamlined deployment methods, minimum configuration time and annual fees that include support.
3. Ensure you have access to a good skills set to implement and maintain your software
Make sure you choose a system that is widely used in South Africa. This will ensure that, if you don't already have sufficient skilled people, you'll be able to recruit them from the large pool that exists outside your organisation due to the popularity of the product.
4. Allow for proper training
Of course, even skilled users need refresher training to keep them up to speed with the latest software, while new users require in-depth training. So select a vendor who offers full training and support as part of the package and who has a good reputation for providing comprehensive, expert training.
5. Ensure all important data are migrated
Choose a vendor with the experience and know-how to conduct a thorough data migration during your implementation phase. Failure to do so ensures you start out on the wrong foot! As Mohammed Mosam, Divisional Director of Sage Pastel Evolution, says: "Make sure your new ERP system does what it's meant to do, ie, give you an integrated and holistic view of your business by bringing every aspect of your operating environment together. This gives you the ability to control your financial situation and your relationships with your customers, suppliers and employers.
"Also, choose a system that can expand to meet your future growth through additional modules that integrate seamlessly with your core system."
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