Article

To reduce ERP selection risk and angst, focus on the partner and the software

by Peter Hill
Director, Fenwick Software,

Choosing a new ERP system can be a very fraught process with a low chance of success. The main problem lies in the definition of what you are trying to do, namely: choosing a new ERP system. The fact is that there are a number of ERP systems that are likely to be capable of meeting your requirements. Consequently, and perhaps surprisingly, it is not that important which of the suitable packages you choose. Obviously you will have a set of core requirements, but the really important choice to make is the combination of the ERP system and a partner with whom you can achieve a successful implementation and a profitable on-going relationship.

So how should you go about the business of choosing a new system and software provider?

First up, treat the acquisition process as a project. Put together a project team comprising operational personnel  who have a sound knowledge of the operations of your business and management personnel. Hold a rapid project planning day (include the CEO if at all possible). This planning session will decide and document:

  1. A broad description of the required system (e.g. an integrated Financial, Warehouse Management and Distribution system)
  2. The business benefits being sought, the business objectives and the project objectives
  3. Agreement on the scope of the project: what is in scope and, just as important, what is not in scope
  4. Agreement on the priority and weight of the three core project variables: time, cost & functionality
  5. A risk assessment and a risk management plan
  6. Project strategy (how to select a short-list and then evaluate vendors & packages)
  7. The project constraints
  8. Initial effort and schedule estimates for ...

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About Peter Hill

Peter Hill is a Director of the Melbourne based company Fenwick Software. He has been in the Information Services industry for more than forty years, working in both Australia and New Zealand. He has a passion for seeking ways to improve the performance of IT and delivering benefits to its users. 

More about Peter Hill