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Historical Selection Method
- Document a detailed list of all company requirements.
- Search internet for a list of software vendors to consider.
- Match your requirements list to all software vendors being considered.
- Compare pricing of candidates.
- Create vendor short list.
- Entertain multiple “sales demos” (for 3 hrs to 2 days each).
- Telephone interview 3 customer references.
- Make “leap of faith” decision on which system to partner with.
How many are successful using this method?
An article in The Wall Street Journal stated that "73% of companies are dissatisfied with their ERP system."
Why has this selection method not been successful?
- Most systems today are feature rich and meet most requirements. At most, system differences are subtle and fleeting.
- Sales demos are orchestrated by professional presenters and are designed to look impressive.
- It takes years to evaluate an ERP system. It is impossible to evaluate which system is best from observing “sales demos.”
- The price quoted by software vendors is influenced by your stated budget.
- Customer references are carefully selected and coached by the software vendor to give biased, positive feedback.
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The Proof of Concept Pilot
- Document only your company’s critical requirements.
- Confirm your “critical list” is met by the software vendors being considered. Eliminate those that do not.
- Request proof of financial stability. It is a long term partnership. Eliminate those that are risky.
- Ask for a list of local companies that:
- have been using the version demonstrated to you for at least 12 months so they have already passed the learning curve.
- have been implemented by the same trainers as you will use (to confirm local support).
- are similar size to your own (to confirm the software is right-sized); and
- 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! But if you are still not confident with a choice, arrange for a “Proof of Concept Pilot” with their trainers (not salespeople) setting up the system around your requirements, entering your data and presenting the system in your best light. Trainers charge for their time, but this fee will be much less costly than a system you are dissatisfied with, or worse - a failed implementation.
- If you are not satisfied with your first pilot choice, pilot your second vendor choice. You have “paid” for the pilot and have no obligation to continue with the first 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.
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