Discussion on:

Evaluating ERP software vendors

Although the IT department is crucial to the successful implementation of an ERP application, it is a common mistake to assume that they know how to select the best software. ERP requirements gathering and selection is the responsibility of the operational departments of the company, of which IT is only one.

Yes I think your are absolutly correct it has to be a team effort and team I mean buy ins and contribution from every corner of the company cause it affects so many.

I can't tell you the end of the story yet, but I think the way to go is getting groups from all corners of the org to meet weekly for status update. HR, Acctg, Tech, Audit, etc. Each will have many in its own groups and sub groups--all pulling together to the end result.

Evaluate first. Implement second.

Don't overly customize the software. You'll live to regret upgrades.

... is you have too many chefs to ruin the stew. Have a small focus group to concentrate on what is needed now and in the future. Meetings with too many people can be a waste of time.

I just said this yesterday to several key employees. My company is is the process of evaluating vendors. The CFO whom I report to, seems to believe that I, as I.T. Director, should be making the decision on an ERP solution. I have been telling him and the owners that the users in each department must weigh in on which application best suits their requirments. I think the message is finally sinking in. But it has taken more than a year to come to this point. We have now setup an ERP Steering Committee and are moving forward.

A few years ago I heard a lecturer from Europe Compare Oracle APPS , Baan and SAP.
He Said that SAP was the biggest package to Implement and took about 18 months at least to Implement. Baan of the three was the easiest to Implement. Oracle Applications had the Best Database. (SAP and Baan can run on Oracle) I wonder how much of that is still
true? My Guess though is that Using Smart Cards in Large Corporations should smoothen
ERP Implementation.

Pardon my ignorance, but what is "ERP"? What does it stand for??

ERP - Enterprise Resource Planning
It originally started as MRP - Material Requirements Planning. Software used by manufacturing companies to run the business and the plant floor. It's now being used by many companies (manufacturers, distributors, service business,..etc) they just don't use the manufacturing module.

My definition is: It is 40 years of trial and error to incorporate the Best Business and Manufacturing Practices onto a single computer system while integrating departments and functions across the company. In essence, using the business rules defined in the software forces/helps departments to work more efficiently and to work together.

Does anyone have a vendor evaluation checklist for CRM suites?

The "check list" for ERP packages is massive and really depends on your solution. Find the most common elements in the vendor solutions and look at your requirements and see if the two match up... anyone else got a list?

DBlayney is quiet right in his statement! What a orgranization must do is look at it's current processes which it uses, revise and update them and only then think about the IT implications.

Study the workflow and how the customer is treated bythe orgranization; see the process as a whole - then implement policy and then the IT system should adhere to it(hopefully )

You are asking for failure of an ERP implementation when you consider it as an IT project. While your IT department can assist when it comes to the question of how to implement it, IT people have no clou of WHAT you want to implement. It is the "Functional User" in your organisation who knows WHAT the system needs to do. Only the Functional Users experience in their day to day operations where the problems are and WHAT would be better in terms of business processes. - Please make sure that you assign "the best functional users" from your organisation to such an implementation project and not because they have got the time. After all, you want to implement new business processes, business processes which allow you to run your business with optimal performance.

Application sharing abilities and connectivity between the ERP and cad, eda, PM and other apps run by R&D and engineering departments is crucial for the ERP success.
Very few people will do documentation willingly and NONE will do it twice!

Does anyone know of a fitures compare list for ERP software?

I have known a few companies that are implementing or tried implementing ERP systems and all of them have had a tough time of it. Why is this? is it all in the planning or is it the "Who moved my Cheese" senario? or perhaps all the above and then some?

There are a standard list or reasons for failure. The two most critical are lack of senior management understanding and support, and lack of training for employees. Training for employees doesn't mean just on the software, but usually there is little theorical foundation in the employee knowlegde base. You will find, much to your employees dismay, that many software companies processes are more efficient and managable than the ones they've been using for the last 20 years.

I have been present at the implementation and attempted implemenataion of several ERP software suits, as well as many other software implementations.
There are countless reasons why these efforts either fail outright or don't live up to the productivity gains that were the reason their instalation was originally approved.
User buy in cannot be underestamated. This is from top down, and requires not only training, but enough internal sales sessions to make sure everyone understands that this effort is not only good for the company, but good for their careers as well (this is not a threat, they are worth more on the market if they have this experience).
Product raining, both in the software and the business reasons the project was started is important.
Thinking through the installation process, taking the time to try to understand the changes that will occure in the company as a result of the changes, and taking the time to help each worker figure out what will happen to their daily routines and responsibilities, before it happens.
All the installs that work, use an indepent consultant to plan, moniter and keep the project on track.
The planning phase, along with software sellection, is the most critical effort and must be done well.

We are at the edge of deciding our ERP vendor. We made a detailed study of what each department is doing and what they need for present and the future. At last we concluded the pre-analysis stage. But the biggest problem I see in our office is that how well the implementation of the system will be, we will never be able to implement end-users to the ERP. They just do not want it, and all of them think that they won't have anything to do anymore (we are an absolute paper-dependent office). How can we overcome this problem?

This is a difficult one. Can this orgranization move forward and be competitive with out going the ERP/CRM route? If the answer is yes you're lucky! This might be a "don't and die" situation; if you hesitate the organization might not be competitive enough if the ERP is not implemented. Again if the users do not come on board then you might have the same problem. Try sell the solution to the users, ask for their input. See if they can prove that paper is a faster more effecient system. Good Luck!

Very interesting points? here an other point of few:

When I went "firefighting" and I ask the teams, what the most reasons for an unsuccessful implementation are - I can tell you, they know them all !!!

So, what I realized is, that most companies fail to realize the up coming problem in the early stage OR they realize it, but there is nobody taking actions (at this point or even before problems occur).

They basically fail to have an experienced, highly skilled AND independent combination of ??
besides the obvious this person should have:
- gone also through failed implementations
- understands that the culture of a company defines the approach.
- Change Management/BPR Expectation management focused
- Very often I read here as well, he/she has deep system knowledge ? I am not sure?. It is important to understand the architecture of systems. One goal of an implementation should be to have the system problem solving experts in house - not gone after the go live day!
- Business focused/experienced all functions of an org. otherwise you will get a "technical" implementation, not focusing on business objectives any more.
- by now I think you realize in which direction I want you to think,

Other experience I want to communicate/thought process I want to trigger:
-Independence and communication of problems (step on toes of colleagues/bosses/..) so easy/free then somebody independent.
- What about independence from the main service provider?
- What about having our person on board helping the process definition
- What about getting this person involved in the selection process

I hope I add some value and triggered some thoughts,
Marc

With this type of resistance, users can undo the project completely.
Carrot is better than stick.
try getting the chosen vendor to ask other SUCCESSFUL installation sites to get their BEST users to come and sell the benefits.

You may be able toget them to fund this if it means a contract won.
Users who can 'talk the walk' and explain in coalface terms how the system helped them in their jobs and careers, or who could act as mentors would be great. It also helps for them to realistically talk thru the teething problems and angst that they had to face and overcome.

This article is great. ERP implementations can get very expensive. Consultants will try to upsale you everything. The article go over the basics. The bottom line is to really understand what your company is trying to accomplish as well as looking forward into the future.