Big4Guy

Evaluating and selecting an ERP for implementation within organizations is major exercise. Evaluating an ERP needs specific efforts, since ERP packages like SAP R/3, Oracle Applications etc are very complex in terms of their functionality and technology. Organizations should try and balance both the technology as well as the functionality while deciding on an ERP package. From an organizational perspective the best package is one which has the coorect balance of complexity and flexibility. In some case, the demands of an organization are so unique, it is better to build rather than buy off-the-shelf packages. Thus, depending on a company(s) business model, type of the ERP package should be selected. At a very broad level, some of the main criteria / questions which can be considered while selcting an ERP is as under:

1. Is the ERP package comprehensive in terms of functionality?

2. Is is possible to customize the ERP package to cater to the needs of the organization?

3. What are the controls built in the ERP package and how will they fit into the organziational processes?

4. Is the ERP package easy to use or is complex requiring many traning sessions?

5. How long does it take to implement the ERP and how easy is it as far as implementing it is concerned?

6. Is the ERP Package efficient in operation or requires huge resources?

7. Does the ERP under considered have an open system architecture as well as open system interfaces?

8. It is also important to consider whether an ERP can handle Euro currency? (not applicable to all)

9. Is online documentation and help available for the ERP package under consideration?

10. Will the ERP vendor offer upgrades and enhancements in the future?

11. How will skill transfer and training programs be conducted for the ERP?