Sunday, May 27, 2012

How To Select ERP System

Source: http://erp.manufacturer-supplier.com/  

After the comparison of Infor10 SyteLine with QAD, I'm surprised that SyteLine has so many limitations! I've compiled the differences between SyteLine and QAD system towards our company requirements in the table below:

Customization Required by SyteLine & QAD


109 Customization required by SyteLine.
34 Customization required by QAD.

Critical Customization required:
SyteLine - 19
QAD - 8


Man-day require by SyteLine for customization is 99.5 days but QAD only requires 45 days.

Based on the table above, I would conclude that QAD is a better fit to our company compared to Infor10 SyteLine.

Based on my experience, I've come out a guideline for ERP vendor selection below. ;)

How To Select an ERP System

  1. Prepare your company business process flow before asking any vendor to come in. The list should at least consists of: 
    • Overall Process Flow
    • Individual Department Process Flow 
    • Standard Case Process Flow and  
    • Exception Case Process Flow
    • You could include Additional Requirements to the list if there is any for your company.
  2. Compare as many systems as possible.
    Pull in as much vendors as possible, ask the sales representative to demonstrate their system based on your business process.
  3. Always remember NOT TO BELIEVE in all the words of a sales representative.
    They will certainly tell you: "Yes, we can do this with no problem." This is one of their tactics in gaining your trust and confident for their system. You will only know if the system is workable for your company until the Business Requirement Study (BRS) phase.
  4. Select the vendors after the demo session which you felt confidence and ask them to do a BRS with your company.
    The BRS session is usually 1~2 weeks and you will need to pay for the consultants visit. But it's definitely worth it. During the BRS session, you will learn more about the gaps between the system and your company process. You should request the consultants to show HOW their system handle your company requirement.
    The consultants should also prepare the Gap List which states 
    • Your company requirements, classified in High Importance, Medium Importance and Low Importance.
      • High means the requirement is ESSENTIAL for your company and your company cannot use the system to work without it;
      • Medium means the requirement is important but not essential, your company will still be able to use the system without it;
      • Low means the requirement is insignificant, your company can work with the system without it but having it will be a plus.
    • Is standard system able to handle the requirement?
    • If not, what is the work around solutions?
    • If there is not work around, can we do customization?
    • How many man-day is required for that particular customization?
     5.  Compare the gap lists to get Pros / Cons for the systems. Make your choice and proceed!


Hope it helps!

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