ERP Assessment & SelectionPresented by: Khaled Omar: 800-05-0269

Outline• Introduction

• Will ERP Benefit Your Organization?

• Six Steps to an Effective ERP Assessment

• Conclusion

Introduction• ERP vendor selection is not an easy task

• Often not given the appropriate attention

• CIOs often make decisions on perception, gut feel, or faulty information

• E.g. Executives often choose ERP vendors based on what competitors have chosen

Will ERP Benefit Your Organization?• Executives need to make decisions based on:

• Objective, unbiased information rather than gut feel

• Organizations should consider the following questions before starting the ERP vendor assessment & selection:

1. Why do you want to implement ERP? • In many cases ERP will not solve a company’s

business problems

• If the business strategies or key processes are flawed, the most advanced IT system is not going to help

• In such case, improving processes and redesigning the organizational structure, may be more cost-effective and lower-risk

2. What are your business requirements?• Executives should define and document key

business requirements for any package they may select

• This includes not only nice-to-haves, but also requirements that are “deal-breakers” if the software is unable to accomodate

3. What is your business case & ROI?• It is important to understand and document

what the total cost will be for each ERP vendor under consideration

• All costs including hidden project costs such as internal project resources, data conversion, and lost productivity immediately after go-live should be included in the ROI calculation

4. Who will be your impl. partner?• Software companies aren’t always the best at

implementing their software

• There are often third-party vendors and consultants that can implement ERP more successfully or at a lower cost

• Look at consulting firms to help in managing the non-technical aspects of the project, such as organizational change management

5. Do you have enough resources?• Even if ERP is perfect for a certain company

and the company has selected the perfect software, things will get worse if not enough employees are dedicated to the project

• It is the company’s employees that will ultimately make the project succeed

6. What is the contingency plan?• Be prepared for failure

• It’s best to acknowledge that something bad could happen

• If the project does fail, what is the backup plan? Will users be able to access legacy system?

6 Steps to an Effective ERP Assessment1. Define the potential industry-specific and

general ERP packages

2. Once the “long-list” has been identified, identify the key requirements that a package must have in order to make the short-list

3. Conduct a more detailed assessment and analysis of the short-listed vendors

6 Steps to an Effective ERP Assessment4. During the short-list and demo evaluation,

involve key users and ask them to complete evaluations for each of the vendors

5. In parallel with the functional assessments, assess the technical capabilities of the short-listed vendors

6. Make a decision based on the input from the vendor evaluations and technical assessments

Conclusion• Choosing an ERP software package is one of

the most important decisions an organization will ever make.

• It will have long-lasting effects on a company’s effectiveness and financial performance

• It is a decision that should not be taken lightly

Thank You!