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The Proof of Concept Pilot

Test drive your ERP Selection before you invest.



That's right it is possible! The Proof of Concept Pilot allows potential ERP customers to get a better feel for their ERP selection choice(s) by having an in-depth, hands-on demonstration to evaluate their most critical and unique processes.

Historical ERP Selection Method

In the past, ERP selection methodology was too simplistic for such a complex task. Commonly, the process would entail:
  1. Documenting a very detailed list encompassing ALL company requirements.
  2. Search the internet for a list of software vendors to consider.
  3. Matchyour requirements list to all software vendors being considered.
  4. Compare pricing of candidates.
  5. Create vendor short list.
  6. Entertain multiple “sales demos” (for 3 hrs to 2 days each).
  7. Telephone interview 3 customer references.
  8. Make “leap of faith” decision on which system to partner with.


So, how many companies were successful using this method? A past article in The Wall Street Journal stated that "73% of companies were dissatisfied with their ERP system."

Why has this selection method not been successful?

  1. Most systems today are feature rich and meet most requirements. At most, system differences are subtle and fleeting.
  2. Customers are so focused on ALL of their processes, that they do not put enough emphasis on their key, unique processes that provide a competitive advantage.
  3. Sales demos are orchestrated by professional presenters and are designed to look impressive.
  4. It takes years to evaluate an ERP system. It is impossible to evaluate which system is best from observing “sales demos.”
  5. The price quoted by software vendors is influenced by a stated budget.
  6. Customer references are carefully selected and coached by the software vendor to give biased, positive feedback.

A New Approach to Software Selection

With the results of ERP selection being less than satisfactory, a new approach was in order:
  1. Document only your company’s critical requirements.
  2. Confirm your “critical list” is met by the software vendors being considered. Eliminate those that do not.
  1. Request proof of financial stability. It is a long term partnership. Eliminate those that are risky.
  2. Ask for a list of local companies that:
    1. have been using the version demonstrated to you for at least 12 months so they have already passed the learning curve.
    2. have been implemented by the same trainers as you will use (to confirm local support).
    3. are similar size to your own (to confirm the software is right-sized); and
    4. are in a similar or the same industry (similar requirements). And visit them, do not just phone interview.
After those steps, you should have a favourite!

The Proof of Concept Pilot

A Proof of Concept (POC) takes ERP selection methodology one step further by allowing you to review the selected system with your own critical data. Since the POC requires additional configuration along with data migration, choose the most significant process, functional or divisional areas to be demonstrated.  POC services are typically provided for a fee, however, the cost is relatively small in comparison to selecting an ERP that doesn’t meet your needs.

Selecting the right presenter is equally as important.  POC is a paid service and should be conducted by the vendor’s trainers and implementation consultants – NOT sales.  ERP Implementation professionals will not exaggerate benefits or hide deficiencies in the system.  They will disclose capabilities to the best of their understanding and demonstrate to you the ROI opportunities and benefits that you will receive with a full implementation.  Their services will stand trial should you choose to purchase the system, making them a suitable choice to explain the ERP’s benefits and shortcomings.

Once complete, the POC should provide you with sufficient evidence to make your decision.  If still unsure, ask to see more of the system.  Once your data has been populated, it is easy to extend your view of the system.  If you are unsatisfied with the your first pilot choice, approach your second vendor.  POC is a paid service and there is no obligation to purchase the software if you are not satisfied.

However if the pilot is successful, why bother reviewing any other systems?  You can now begin your implementation with the peace of mind that a correct choice has been made and that the project will be a success.

 

Find the answers and get expert ERP selection advice using the knowledge attained from over 30 years of business software experience. For additional information, contact BSA Inc. at info@BSAinc.ca.