W7 ERP System Selection PDF

w7 Explain why it is important to choose the "right" ERP system Identify and discuss the challenges of selecting the "right" ERP system Differences in ERP solutions (generic vs industry specific, Tier 1/2/3, onpremises vs cloud vs hybrid, basic functionalities vs emerging technologies, different TC...

w7 Explain why it is important to choose the "right" ERP system Identify and discuss the challenges of selecting the "right" ERP system Differences in ERP solutions (generic vs industry specific, Tier 1/2/3, onpremises vs cloud vs hybrid, basic functionalities vs emerging technologies, different TCOs/ROI etc.) Difficulty in comparing different ERP solutions (unique solutions with different valueadded features and packaging options) Selecting a system as well as systems implementation partner Challenge in defining requirements (obtaining requirements and getting consensus) Uncertainty of future Understand the general steps involve in selecting an ERP system w7 1 Discuss criteria for selecting ERP vendors and systems Explain the role of Request for Proposals (RFQs) in the selection process w7 2 RFP: Formal document sent to vendors if in-house development is not selected States requirements and solicits proposed solutions = so understanding the company’s requirements is an essential step before developing the RFP • Considered a competitive contract offer • Bid on supplying hardware, software, and/or support services • Expensive and time-consuming process for both the company and vendor, but it can yield significant software savings when done right. List the important content of Request for Proposals (RPFs) Background Information of the Organization: Introduction to the business. Product and service overview. Geographics (e.g., office locations, relevant expansion plans). Market information. Customer profiles. Project Scope: ERP Project Overview (e.g., expected number of users, project timeline). ERP Project Goals. Duties to be performed by the vendor and expected outcomes. Breakdown of project budget. Requirements: Detailed list of ERP functional, technical, and general requirements. Vendor Information: References. Expected schedule. Details of personnel to be assigned to the project. Cost information. Standard contract terms & conditions. w7 3 ERP Strategy “a definition of how and where (in business capability/process/organization terms) the ERP technology strategy will support the business strategy and strategic objectives,and deliver value to the business.” Jacobs & Whybark’s Model Flexibility: ability of the organization to change its product offerings, or ability to adapt to changes in customer requests -> level of responsiveness Centralization: centralized or decentralized decision-making structure -> level of integration Common client vs Multiple clients: single instance vs multiple installations (from single or multiple vendors) Best practices vs Multiple processes: : vanilla implementation (BPR) vs customization/best of breed w7 4