When you begin to research ERP vendors to replace your old legacy system, you are going to find a lot of choices and a lot of confusion. In the last few years, a lot of information has been put on the Internet to help with your efforts but it still remains a daunting task for the company that replaces their ERP system only once every 20 years.
A major part of Ultra’s value add is providing information on the vendors to shortcut the difficult process of identifying the right vendors and the right partners to evaluate. Notice I said vendor and partner. In today’s market, most ERP vendors sell through channel partners. Therefore you not only need to identify the right vendors but also the right partners for your project
Without guidance we find ERP selection teams often identifying as many as 12 to 15 vendors. Having too many vendors in the list results in a lot of wasted time. In every vertical market the educated buyer need only put 5 to 8 vendors on their long list which reduces your efforts by 50%.
The next question is the short list. How to get to it and how big should it be?
Everyone has his or her own approach to the initial evaluation. Ultra will discuss this process more in our monthly webinar. But once the initial evaluation is complete you should pair your list down to 2 to 3 vendors. Why this number?
Here are a couple of reasons:
- Once you have built your decision criteria table on 5 to 8 vendors it will clear who are the top 3. It then is up to you as to whether you do in depth review with 2 or 3.
- Your team will not have the stamina to do more that 3! It is a difficult task to attend the detail demos, evaluate the capabilities, and compare the vendors.
In Ultra’s ERP webinars we discuss these ERP lists and the process in more detail. Click to learn more about our upcoming webinars.