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Tips on Choosing an ERP Software

There are a lot of many ERP software solutions out there in the market and choosing the right software can be quite hard. Most people have a tendency of choosing a random ERP software then adopting their business to the software. However, as shown by the many failures in ERP systems this is not true and the wrong ERP chosen will lead to loss in time and money. The main purpose of an ERP is to improve business process and make it better thus one needs to be careful on the ERP system they choose

The ERP is first a business initiative therefore the buyer needs to define the existing business processes, challenges and strengths that the business has. This analysis should include what the person thinks the processes should look like in the future and what business requirements have to be met to achieve this. This information should inform the buyer on which ERP software to choose because it meets the business needs of the person.

Fundamentally the purchase of an ERP software is a business process but this does not negate the fact that the person needs to know how the software solution will fit into the existing technology framework.

Another important thing to factor in is the cost of ownership. A lot of sellers have made it a habit not to reveal the extra costs that come with buying their software. This requires that the buyer do their due diligence on these extra costs before committing to any software since this will save them a lot of time and money now compared to when they have already bought the software. If the buyer does their due diligence then they will be able to spot other extra costs like software maintenance, hardware upgrades, familiarization of the project team with the software and other things.

The person also needs to develop a realistic implementation plan because in the sales cycle the vendors might give an unrealistic implementation duration estimate. This plan needs to include things like software installation issues and other things like functioning, testing the software and the acceptance by end users. This plan has to be created before the buyer agrees to buy the ERP machine so that they can be prepared for the cost of implementation. This implementation plan should be very detailed and cover all aspects like the business process design, work flow design and other aspects like multiple test integrations, data integration and other aspects of the business like conference piloting. By sticking to the points discussed above the buyer can make a logical decision on which ERP software is good for their business needs and will help them have a competitive advantage.

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