{"id":1054,"date":"2019-07-30T19:33:44","date_gmt":"2019-07-30T07:33:44","guid":{"rendered":"https:\/\/wpdevtest.topaz.nz\/?p=1054"},"modified":"2019-10-11T14:51:53","modified_gmt":"2019-10-11T01:51:53","slug":"process-of-selecting-erp","status":"publish","type":"post","link":"https:\/\/wptopaz.otting.info\/index.php\/2019\/07\/30\/process-of-selecting-erp\/","title":{"rendered":"The Process of Selecting an ERP"},"content":{"rendered":"\n[et_pb_section admin_label=&#8221;section&#8221;]\n\t\t[et_pb_row admin_label=&#8221;row&#8221;]\n\t\t\t[et_pb_column type=&#8221;4_4&#8243;][et_pb_text admin_label=&#8221;Text&#8221;]<!-- divi:paragraph -->\n<p>Generally, ERP\ndecisions are justified on \u2018overall fit\u2019, which is a euphemism for one of the\nfollowing:<\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:list -->\n<ul><li>It\nscored the most points in our comprehensive evaluation check list.<\/li><li>It\nwas the consensus decision of our evaluation team.<\/li><li>We\nhave no real idea, so have gone with a company we trust.<\/li><\/ul>\n<!-- \/divi:list -->\n\n<!-- divi:paragraph -->\n<p>If done\nthoroughly, the first option is very time consuming so increases the risk that the\npurchase exercise does not receive sufficient focus and that some quality\nvendors may choose not to participate. <\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:paragraph -->\n<p>However, the big\nissue is that <em>it is virtually impossible\nto do a useful \u2018apples for apples\u2019 comparison of similar ERP\u2019s<\/em>. <\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:paragraph -->\n<p>While the check\nlist process is supposed to bring a level of objectivity, in practice, it is a\nsummation of many subjective observations. As a result, while it may rule out\nclearly unsuitable offerings or identify an obviously superior choice, it doesn\u2019t\nwork well where the differences aren\u2019t clear cut, and it mitigates against the\n\u2018left field\u2019 opportunity. <\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:paragraph -->\n<p>The second\noption, has many of the short comings of the first, with the added risk of ending\nup a compromise that is the least disliked, rather than the optimum choice.<\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:paragraph -->\n<p>The third option\nis usually taken because it\u2019s the least time consuming, but in fact, it is\nlikely to give the best result if there\u2019s a reasonable basis to trust the\nchosen vendor.<\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:paragraph -->\n<p>The following\nsteps are a systematic approach to achieving this.<\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:list {\"ordered\":true} -->\n<ol><li>Decide who the one or two key drivers for\nchange are in the organisation and charge them with selecting the ERP vendor. <br>\n<br>\n<\/li><li>Build a profile of the ideal vendor,\nbearing in mind that the issues faced, priorities and the desired outcomes are\nwhat matters, not product features. This should be a \u2018living document\u2019 because as\nthe process proceeds the perception of the ideal may change.<br>\n<br>\n<\/li><li>Make a short list of possible vendors using\npersonal contacts and\/or by identifying who similar organisations to yours deal\nwith. Then extend this list by, as part of the initial contact with the vendors,\nasking who their main competitors are.<br>\n<br>\n<\/li><li>The objective of the initial contact is\nto do some preliminary filtering against the required profile. The idea is to get\ndown to a manageable list, say no more than five. It is also a reality check, so\nbe transparent as to budget and other expectations. <br>\n<br>\nIf a vendor is not interested, then it\u2019s important to establish why not as part\nof the reality check. Quality vendors will walk away from opportunities if they\nperceive \u2018problems\u2019. These can be an unrealistic budget, poor understanding of\nrequirements, bias in key decision makers or unrealistic expectations. <br>\nIt\u2019s also possible they may perceive there are alternative options that are\nmore appropriate. Either way, there could be some valuable insights to be\ngained.<br>\n<br>\n<\/li><li>Compile the initial short list and email\neach rejected vendor with the justification and ask if there\u2019s any single compelling\nreason why they should be reconsidered. This is done as a courtesy and to identify\npossible \u2018left field\u2019 opportunities.<br>\n<br>\n<\/li><li>Approach the remaining vendors on the\nbasis that you are looking for them to help reach the right decision and as\npart of that they will need to make a presentation as to why they should get\nthe signature. <br>\n<br>\nWhen they ask about requirements, respond in terms of outcomes not product\nfeatures. A lot can be learnt from the questions they ask, or perhaps more\nimportantly don\u2019t ask.<br>\n<br>\nAsk for their view of the other vendors and products under consideration and what\nthose vendors might say about them. This helps get clarity as to the market\nperception of the strengths and weaknesses each vendor. <br>\n<br>\nWhile some vendors may take the position that they don\u2019t discuss their\ncompetitors, this is a little \u2018old school\u2019. These days sales consultants see\ntheir role as helping potential customers get to the right decision whatever\nthat might be. <br>\n<br>\nHowever, given that you are tapping into their knowledge for free, it\u2019s\nincumbent on you to minimise their time input. For example, make it clear their\npresentation is not a demonstration and so should not need a lot of preparation.\nAs a guide, two hours including discussion should be sufficient for the\npresentation.<br>\n<br>\nAt this point you are going to take them at their word with regards to the product\nfeatures and their relevance. <br>\n<br>\n<\/li><li>The next step is to shorten up the list\nand ask the remaining two or three for ball park pricing. This doesn\u2019t\nnecessarily dictate choice, but it is done to keep the successful vendor honest.<br>\n<br>\n<\/li><li>Now select the preferred vendor based on\nthe ideal vendor profile established earlier and advise them that the next step\nis for them to \u2018sell\u2019 their product to the key employees who will be\nresponsible for implementing it. This verifies that the product will meet the\nneeds and secures key employee buy-in through using the vendor\u2019s sales skills. <br>\n<br>\nIf the sales pitch doesn\u2019t go well, loop back to the previous step with the\nsecond choice and repeat. &nbsp;<br>\n<br>\n<\/li><li>Negotiate the contract.<\/li><\/ol>\n<!-- \/divi:list -->\n\n<!-- divi:paragraph -->\n<p>The benefit of\nthis approach is gaining access to the ERP vendors general knowledge and although\nthis knowledge will inevitability be presented with bias, the assumption is you\nare well capable of allowing for that.<\/p>\n<!-- \/divi:paragraph -->\n\n<!-- divi:paragraph -->\n<p>The process is\nnot hard and fast, and doesn\u2019t work for all situations, for example if price or\nproduct features are overriding considerations. However, if you prefer to deal\nwith organisations that are customer as opposed to product focused, then it follows\nthat your purchase process should be focused on the vendor not the product.<\/p>\n<!-- \/divi:paragraph -->[\/et_pb_text][\/et_pb_column]\n\t\t[\/et_pb_row]\n\t[\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"<p>If done thoroughly, the first option is very time consuming so increases the risk that the purchase exercise does not receive sufficient focus and that some quality vendors may choose not to participate. <\/p>\n","protected":false},"author":3,"featured_media":1049,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:paragraph -->\n<p>Generally, ERP\ndecisions are justified on \u2018overall fit\u2019, which is a euphemism for one of the\nfollowing:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>It\nscored the most points in our comprehensive evaluation check list.<\/li><li>It\nwas the consensus decision of our evaluation team.<\/li><li>We\nhave no real idea, so have gone with a company we trust.<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>If done\nthoroughly, the first option is very time consuming so increases the risk that the\npurchase exercise does not receive sufficient focus and that some quality\nvendors may choose not to participate. <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, the big\nissue is that <em>it is virtually impossible\nto do a useful \u2018apples for apples\u2019 comparison of similar ERP\u2019s<\/em>. <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>While the check\nlist process is supposed to bring a level of objectivity, in practice, it is a\nsummation of many subjective observations. As a result, while it may rule out\nclearly unsuitable offerings or identify an obviously superior choice, it doesn\u2019t\nwork well where the differences aren\u2019t clear cut, and it mitigates against the\n\u2018left field\u2019 opportunity. <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The second\noption, has many of the short comings of the first, with the added risk of ending\nup a compromise that is the least disliked, rather than the optimum choice.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The third option\nis usually taken because it\u2019s the least time consuming, but in fact, it is\nlikely to give the best result if there\u2019s a reasonable basis to trust the\nchosen vendor.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The following\nsteps are a systematic approach to achieving this.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol><li>Decide who the one or two key drivers for\nchange are in the organisation and charge them with selecting the ERP vendor. <br>\n<br>\n<\/li><li>Build a profile of the ideal vendor,\nbearing in mind that the issues faced, priorities and the desired outcomes are\nwhat matters, not product features. This should be a \u2018living document\u2019 because as\nthe process proceeds the perception of the ideal may change.<br>\n<br>\n<\/li><li>Make a short list of possible vendors using\npersonal contacts and\/or by identifying who similar organisations to yours deal\nwith. Then extend this list by, as part of the initial contact with the vendors,\nasking who their main competitors are.<br>\n<br>\n<\/li><li>The objective of the initial contact is\nto do some preliminary filtering against the required profile. The idea is to get\ndown to a manageable list, say no more than five. It is also a reality check, so\nbe transparent as to budget and other expectations. <br>\n<br>\nIf a vendor is not interested, then it\u2019s important to establish why not as part\nof the reality check. Quality vendors will walk away from opportunities if they\nperceive \u2018problems\u2019. These can be an unrealistic budget, poor understanding of\nrequirements, bias in key decision makers or unrealistic expectations. <br>\nIt\u2019s also possible they may perceive there are alternative options that are\nmore appropriate. Either way, there could be some valuable insights to be\ngained.<br>\n<br>\n<\/li><li>Compile the initial short list and email\neach rejected vendor with the justification and ask if there\u2019s any single compelling\nreason why they should be reconsidered. This is done as a courtesy and to identify\npossible \u2018left field\u2019 opportunities.<br>\n<br>\n<\/li><li>Approach the remaining vendors on the\nbasis that you are looking for them to help reach the right decision and as\npart of that they will need to make a presentation as to why they should get\nthe signature. <br>\n<br>\nWhen they ask about requirements, respond in terms of outcomes not product\nfeatures. A lot can be learnt from the questions they ask, or perhaps more\nimportantly don\u2019t ask.<br>\n<br>\nAsk for their view of the other vendors and products under consideration and what\nthose vendors might say about them. This helps get clarity as to the market\nperception of the strengths and weaknesses each vendor. <br>\n<br>\nWhile some vendors may take the position that they don\u2019t discuss their\ncompetitors, this is a little \u2018old school\u2019. These days sales consultants see\ntheir role as helping potential customers get to the right decision whatever\nthat might be. <br>\n<br>\nHowever, given that you are tapping into their knowledge for free, it\u2019s\nincumbent on you to minimise their time input. For example, make it clear their\npresentation is not a demonstration and so should not need a lot of preparation.\nAs a guide, two hours including discussion should be sufficient for the\npresentation.<br>\n<br>\nAt this point you are going to take them at their word with regards to the product\nfeatures and their relevance. <br>\n<br>\n<\/li><li>The next step is to shorten up the list\nand ask the remaining two or three for ball park pricing. This doesn\u2019t\nnecessarily dictate choice, but it is done to keep the successful vendor honest.<br>\n<br>\n<\/li><li>Now select the preferred vendor based on\nthe ideal vendor profile established earlier and advise them that the next step\nis for them to \u2018sell\u2019 their product to the key employees who will be\nresponsible for implementing it. This verifies that the product will meet the\nneeds and secures key employee buy-in through using the vendor\u2019s sales skills. <br>\n<br>\nIf the sales pitch doesn\u2019t go well, loop back to the previous step with the\nsecond choice and repeat. &nbsp;<br>\n<br>\n<\/li><li>Negotiate the contract.<\/li><\/ol>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>The benefit of\nthis approach is gaining access to the ERP vendors general knowledge and although\nthis knowledge will inevitability be presented with bias, the assumption is you\nare well capable of allowing for that.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The process is\nnot hard and fast, and doesn\u2019t work for all situations, for example if price or\nproduct features are overriding considerations. However, if you prefer to deal\nwith organisations that are customer as opposed to product focused, then it follows\nthat your purchase process should be focused on the vendor not the product.<\/p>\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","footnotes":""},"categories":[1,31],"tags":[],"class_list":["post-1054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","category-product-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Process of Selecting an ERP - Topaz Solutions Test Site @ otting.info<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wptopaz.otting.info\/index.php\/2019\/07\/30\/process-of-selecting-erp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Process of Selecting an ERP - 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