ERP Selection Criteria

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ERP Selection Criteria

• POSMIS

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Contents

• Phases of ERP selection
• ERP selection criteria
• Market share
• ERP vendors with their pros cons

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Phases of ERP selection (1/2)
Study strategy and business process and decide
to acquire an ERP.
Phase 0
Search for candidates and first filter.
Phase 1
Dig into the candidates and second filter.
Phase 2
Analysis and demonstration of candidates and
visits to the providers.
Phase 3
Final decision, negotiation and planning
Phase 4
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Phases of ERP selection (2/2)

• Phase 0 Study strategy and business process and
  decide to acquire an ERP.
• Studies the business (mission, strategy, etc),
  business processes
• Decide if the company has to acquire an ERP
• Phase 1 Search for candidates and first filter.
• Conduct a market research initiative looking for
  ERPs
• Reduce the number of candidates
• Phase 2 Dig into the candidates and second
  filter.
• Obtain one or more interviews with the providers
• Get as many fact sheets, catalogs, articles,
  etc., as possible
• Select 2 or 3 ERP candidate solutions
• Phase 3 Analysis and demonstration of candidates
  and visits to the providers
• Phase 4 Final decision, negotiation and planning

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ERP selection criteria (1/3)

• Functionality criteria

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ERP selection criteria (2/3)

• Technical criteria

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ERP selection criteria (3/3)

• Others
• Cost
• Are the license costs justified given the
  functionality offering?
• Are annual maintenance charges reasonable?
• How quickly can payback be received?
• Service Support
• Can the supplier provide a complete turn-key
  solution?
• How quick are non-critical software bugs fixed?
• Does the vendor offer business process
  reengineering as part of the implementation
  process?
• Does the supplier have industry experience?
• Vendor longevity
• How many years has the company been actively
  engaged?
• When was the products first release? What is the
  current release version being quoted?

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Market share

• In 2000,
• In 2005,
• PeopleSoft merged J.D. Edwards in 2003,
• Oracle merged PeopleSoft in 2005

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ERP vendors with their pros cons (1/3)

• Logistics Workflow
• System Administration

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ERP vendors with their pros cons (2/3)

• Integration of Modules
• Usability

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ERP vendors with their pros cons (3/3)

• Ease of implementation