Mid-market manufacturers have gained value over the last decade from teaming with Ultra Consultants for a specific and effective approach to ERP selection methodology.
With such importance placed on methodology, we thought we’d address three common questions many manufacturing organizations have about the concept of “ERP selection methodology.”
1) What exactly does “ERP selection methodology” involve?
When we refer to “ERP selection methodology,” we are referring to a specific set of tasks and activities that make the entire ERP selection project more efficient. The methodology should also shorten the project duration. With a focused selection method, the manufacturer becomes more efficient, the ERP vendor becomes more efficient, and the process builds a foundation of information, education, and documentation that will increases the client’s project success.
2) What type of methodology is most effective?
Ultra has found that a “business process” evaluation methodology is most effective when evaluating ERP vendors. The key consideration is that ERP Selection services are integrated with both Business Process Improvement services, implementation services, and Business Intelligence. This is a key consideration when heading into an ERP selection. The integration of all of these areas makes ERP project teams more efficient and overall “time to benefit” is reduced.
We advise companies that a business process definition (both current state and future state) should drive evaluation projects. It’s only after looking closely at business process can the team then identify the vendors that meet the required ERP selection criteria and excel in these business processes in the company’s specific industry.
3) What are typical activities that are part of ERP Selection Methodology?
Typically, the ERP selection process guides a manufacturing company to a vendor’s product that has a good fit to the manufacturers business process needs. The goal is to select a vendor that will be a good partner for the next twenty years. Activities that are part of Ultra’s ERP Selection Methodology include evaluating:
- Software functional fit to the future state business process needs
- Vendor’s presence and strength in the manufacturer’s industry
- Vendor’s technology direction
- Vendor’s support ecosystem
- Total cost of ownership
The methodology should deliver the following:
- Identification of vendors
- A vendor interview process
- Development of “evaluation drivers”
- Decision criteria table
- Process driven demonstration scripts
- A vendor product presentation and evaluation process
- Evaluation vendor implementation capabilities
- Vendor price and contract negotiations
Learn More About ERP Selection
For a deeper look, read the white paper Best Practices in ERP Selection available to you as a free download. The timely paper proposes best practices for the small to medium sized manufacturer to consider as they embark upon an ERP selection project.
The industry website ERP Focus recently shared additional thoughts from Ultra about this important issue of selection methodology. See the article Does the Method Matter? A Close Look at ERP Selection Methodology.