How to evaluate/compare ERP systems

Posted on 2004-11-15
Last Modified: 2013-11-23
Dear Experts,
   I am an IT Admin and have been assigned a task to evaluate a couple of ERP systems. I have till now been able to compare the general features like cost/ timing/ modules etc.. but i want to to a more detailed analysis of the systems. Hence can you guide me as to how can i evaluate these systems so as to decide which ERP system is besr suited. Is there any sort of Checklist or something?
Question by:MOvais_Khan
    LVL 12

    Accepted Solution

    Hi MOvais_Khan

    Are you just evaluating in general or choosing an ERP system?

    - Evaluate in general:
    You can look at:
    1.) The size of ERP, the number of users, it wide-area-network capability.
    2.) Its core focus, eg SAP - manufacturing, PeopleSoft - Human Resource, etc...
    3.) System flexibility, ie is it expandable if the business grows and its limits.
    4.) The cost involved for expansion, look at license cost per user and cost per add-on module. Different ERP vendors have different pricing models.
    5.) Is it easy to cutomize the system, again the cost involved and time as well.
    6.) Is the system user friendly, easy to use for the users.
    7.) The system design specification of the ERP, how does the actual system work, you will have to go into technical details with this, normally this will tell you the stability,security and flexibility of the ERP.
    8.) The supporting level from the ERP vendor, helpdesk staff available, technical staff, consultants available, etc...
    9.) Look at the ERP vendor itself, is it doing well, do they have a long term plan, will they still be in the market in 10 years time, this is very important, if the ERP company goes down, so will your business.
    10.) Similar to 9, is there a possiblity that the ERP vendor will get bought out, if they do get bought out, then they could be change in management, supporting structure and pricing model, etc... might adversly affect your ERP solution.

    - Choosing an ERP system:
    1.) First you need to know your business situation, problems and why do you need an ERP.
    2.) What are you actual requirements, ie what do you need this ERP to do for you.
    3.) You will also need to know your business process in detail, ie how does your business operate to its lowest level.
    4.) Very important, know your business and requirements.
    5.) Consider the above 10 points and select the ERP that will fit your business process.

    Hope this helps :)
    LVL 11

    Expert Comment

    Hi MOvais_Khan :-),
    Since we haven't heard from you for a couple of days could you please give us an update on the status of this question?
    See: Thank you, turn123's friendly update request script.
    Offtopic comments about this script to please :-).

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