How to Conduct an ERP Comparison & Selection Like A Pro.

Whether you are replacing a legacy system or implementing your very first ERP solution, you have one major hurdle to overcome- ERP comparison and system selection. Many companies are tempted to rush into selection and a surprisingly large number of them actually fall victim to this temptation, selecting the first system that seemingly meets their needs. In fact, a recent survey from Capterra found that 22% of companies purchase the first software system they looked at and 1/3 of buyers did not even demo the product before buying it! As ERP consultants, we love your enthusiasm- we get excited about ERP implementations too! But don’t get ahead of yourself and wind up with the wrong product. 

Once you have your short list of solutions you’re considering, it’s important to make sure you always compare the solutions “apples to apples” i.e. comparing things that can be reasonably compared between the solutions; keeping that in mind, consider the following as you evaluate your options:

Core components: Do the systems you’re evaluating have the same core components that you require for management and operations across the company? Such as CRM, accounting, costing, planning, inventory, etc.

You will want to come up with your list of must-have modules, and features prior to this point so you can easily go through the checklist for each possible solution.

The people and company behind the technology: While the technology behind the system you ultimately choose is extremely important, many systems are similar in respects to deployment, infrastructure, and other technical elements. The people, both the publisher and the ERP consultant you choose, will differ greatly from one to the next.

Look at publisher and/or ERP consultant reviews, testimonials, financial data if available, awards, and other indicators of their skill and dedication to customer service. You also want to consider their experience in your industry, longevity, number of resources, location, etc. 

Related reading: ERP Implementation Project: Focusing on the People Not Just Technology

Price and total cost of ownership: You cannot talk about ERP system comparisons without bringing money into the conversation. Be sure to compare the costs of each system but dive deep into total cost of ownership including license fees, additional license fees, support costs, annual fees, implementation costs, upgrades, and other recurring costs. This is where your comparison can get a little tricky since many companies have different pricing packages and structures. So tread carefully here and be extra thorough as you compare the solutions.

Fit for your industry and processes: There are many different ERP systems and some of them have been designed for specific industries or processes. For example you may require an ERP system that enables recipe management or a system that supports engineer-to-order, mixed- mode, or process manufacturing. When you’re comparing the solutions make sure you remember the apples to apples approach- you cannot reasonably compare a system designed for process manufacturing to one designed for discrete.

These are just a handful of the many ERP comparison best practices out there, visit our blog for more. In the meantime, we have a few tools that we think you’ll find extremely helpful as you make your decision:

ERP System Comparison Chart:

Our ERP system comparison chart provides a very high-level overview of some of the leading ERP systems on the market, click the image to the right to make it larger and see what these systems have to offer your company.

ERP Evaluation:

We also offer a complimentary ERP Evaluation Template which can be used to evaluate your current ERP system and provide a grade on its ability to support your business.

About Us:

e2b teknologies is a passionate and experienced team of industry leaders and business advisers providing high quality, uncomplicated, and innovative ERP and CRM software with turn-key ERP consulting and custom ERP development services. Contact us today to learn how we can help you succeed with your software project.

Another version of blog was originally posted February 11, 2015 on blog.e2benterprise.com