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Getting Down to Business
We've started to further evaluate the vendors by looking for answers to seven other questions:
Does the ERP vendor's financial strength and culture match our company's expectations? This is the Holy Grail. If we could find a company that has the financial strength to thrive and matches our company's culture, success would be (almost) inevitable.
Our company is fairly progressive. We see IT as a tool that can not only save us money but can also bring us more business, and serve as a differentiator for us in our market. Because we're a regional company, we have complicated vendor relationships and large customers who demand that we present unified solutions for all their locations. The ERP vendor we deal with has to be able to understand that and work as a partner. It must be able to step up to the plate, be flexible and make changes in the software to accommodate business issues as they change.
How confident are we with their implementation processes? A failed implementation of the world's best product can cost several times more than the project itself and take years to find acceptance inside the corporation. Thus, we're scrutinizing the project plans described in the vendors' RFPs. How detailed are their training strategies? Are they reasonable? How disruptive would the project be? We need to understand how the company would approach and handle these issues.
How easy is the system to use? With an ERP system, you're changing the way almost all employees work. And if they get confused, they know your telephone extension. But seriously: Improving the efficiency of our inside sales staff alone by 5% would pay for the project in less than two years. Missed deadlines, shipping errors and pricing mismanagement would make the company less profitable than before.
Does the product have all the necessary functions and features we need? This is the can of worms where we'll spend most of our search time and money. We want knockout features and killer apps, but we need to examine every business procedure to get there.
How much does it cost? Within reasonable limits, say 20% of the median, price shouldn't be a deciding factor, but you need to know what you're dealing with. Be sure to extrapolate all measurable costs out for five years and agree on how to manage the variable costs of implementation.
What's the breadth and quality of the vendor's support and services? We'll ask what percentage of their revenues they spend on support, services and development -- the higher, the better.
Where are they on the technology spectrum? This is where IT can be geek sexy, where we climb out of the data center and start applying technology to untouched opportunities. This is also where the Sirens can lure you on to the rocks. The ideal is a company with new-generation technology that's been out there long enough to be stable, with satisfied customers who will talk about it.
This is the recipe that we're using to select our new ERP partner. Partnerships with ERP providers last longer than most marriages. Time and patience are required to make the right decision, and we're expending plenty of both.
Next: We earn enough frequent flyer miles making site visits to take our families on a dream vacation -- if only we could find the time.
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