Technology Evaluation Centers

Planning and Preparation

Research—Objective Assessment

Evaluation—Going from a Long List to a Short List

Selection—Qualitative and

Subjective Assessment of the Short-listed Vendors

TEC Software Selection ChecklistFour phases to ensure ERP software selection success

Planning and Preparation

1.1 Identify the strengths and weaknesses of your current system

1.2 Determine the key business challenges to be addressed by a new system

1.3 Define the number of users for the new solution

1.4 Calculate the expected return on investment (ROI)

1.5 Educate stakeholders regarding the need for an external consultant, given the cost and time involved in

this mission-critical project, to ensure proper due diligence

1.6 Select an external consultant that specializes in evaluation and selection to support your software selection

project

1.7 Assemble a software selection team that includes key stakeholders from each departmental group, as

well as a project leader and a project sponsor

1.8 Define the project: agree on the project scope and platform that best meets your business needs (cloud

vs. on-premise etc.)

1.9 Determine the decision-making process: agree on the project’s scope, establish the executive selection

team, set project milestones (such as a short list), and get pre-approval for a budget

IPlanning helps you define the project broadly and determine whether it’s feasible and practical. Your

stakeholders should do their due diligence to help determine whether the project is a go.

Once you have the green light, you should create a project charter or a project identification document

(PID) that outlines the project’s purpose and requirements. The PID should define the project and project

management plan and identify the team members along with their responsibilities.

2.1 Identify your key process requirements, map the features, and define which ones are essential (i.e.,

document and structure the requirements for the new system by interviewing your process teams and

subject matter experts)

2.2 Prioritize what is critical, what is desirable, and what is optional in the new system for your company

2.3 Define the technical requirements, including security, databases, servers, and integration needs with

other systems and hardware

2.4 Identify the best performing vendors in your industry—this is your long list of vendors

Research—Objective AssessmentI I

The research phase consists of identifying the processes that fall within your project’s defined scope and

understanding your system requirements. The goal of this step is to ensure that you are aware of your

current and future functional and technical needs.

By prioritizing your requirements, you will identify the needs that are critical to running your business.

This needs identification is fact-based.

Evaluation—Going from a Long List to a Short List

3.1 Compare your business needs versus vendor capabilities (a fact-based exercise)

3.2 Choose the top 3-5 vendors by analyzing your needs against the solutions’ capabilities—this is your

short list

I I IIn the evaluation phase, you compare vendor solutions based on your specific needs. By conducting

detailed comparisons broken down by category of functionality and what-if analyses, you will expose the

gaps between your current systems and the solutions available in the market

The objective is to narrow your list of vendors and decide on a short list for further examination. This is a

fact-based way to identify the vendors that support your requirements.

4.1 Create a demonstration script that highlights your core processes and critical requirements

4.2 Schedule vendor demonstrations of the solutions that include presentations to your key internal stakeholders

4.3 Organize a common platform to capture and rate the demonstrations in a structured manner

4.4 Create a comprehensive request for proposal (RFP)/request for quote (RFQ) with a concrete scope (e.g.,

support services, implementation details, data conversion, understanding of the total cost of ownership)

4.5 Evaluate the implementers, value-added resellers (VARs), and partners: use ratings to score their

company viability, experience, solution, and industry knowledge

4.6 Review the RFP/RFQ in detail to comprehensively understand the vendors’ implementation plans and

score them

4.7 Conduct reference checks

4.8 Analyze your short list of vendors using your decision factors and select the solution that offers the best

overall fit for your business needs

4.9 Analyze the proposed contract terms and services to negotiate the most advantageous terms

4.10 Negotiate the price and payment method

Selection—Qualitative and Subjective Assessment of the Short-listed VendorsI v

The selection phase involves evaluating your short list of vendors and their implementation partners and

learning how they deliver a software solution.

While this phase involves subjective assessment, by completing the decision criteria steps in the right

order and carefully reviewing the results based on your priorities, you’ll be able to select the best-fit

solution for your business. At that point, you will begin strategizing price and contract negotiations.

Technology Evaluation Centers

Let our enterprise software selection experts guide you through this checklist.

Call us at +1 514-954-3665 or email selectionservices@technologyevaluation.com.

Other Resources

• Executive Guide to Enterprise Software Selection • ROI Forecasting • Get a Shortlist of Top Software Vendors

Articles

• 7 Pitfalls to Avoid When Selecting a New ERP System • The Dos and Don’ts of Software Selection and Evaluation • 6 Reasons You Can’t Trust Software Vendors• Top 10 Reasons Companies Should Look for New Enterprise Software • How to Negotiate a Better Deal on Enterprise Software• Why You Need Impartial Software Advice When Selecting Enterprise Software

Case Studies

• Robotics Pioneer Does Due Diligence to Find Best-fit ERP System with the Help of Technology Evaluation Centers

• TEC Selection Services Helps Midsize US Manufacturer Find a Better-fit ERP Replacement, and Negotiates Significant Savings on the New System

• Midsize Manufacturer Gets Best Price for the Right Solution with TEC’s Help • TEC Helps Midsize Designer and Wholesaler Select Its First Product Lifecycle Management (PLM) Solution