MidMarket ERP Buying Checklist - 2009 Edition

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ERP Software:
Midmarket ERP Buying Checklist
2009 EditionP. midmarket erp buying checklistWhat You Need to Know to Avoid a Buying Mistake
Midmarket ERP Buying Checklist
IntroductionEnterprise Resource Planning (ERP) has come a long way from the massive, enterprise-class behe-moths with high failure rates and multi-million dollar implementations. It is of course, quite possible to spend millions of dollars on an ERP system, but the industry has grown beyond the enterprise to accommodate the midmarket as well, with more streamlined products that are available on a modular basis. Up-front costs can be diminished by purchasing only the modules that are required, and ongo-ing costs can be reasonable as well with simpler graphic interfaces and unified management systems.
The earliest midmarket ERP implementations were nothing more than scaled-down versions of the enterprise products, which were limited in scope and still carried the same difficulty and complex-ity of the larger systems. However, the market has evolved. Vendors that previously delivered only enterprise-class ERP systems now offer systems designed specifically for the midmarket; in addition, newer vendors have entered the market with offerings that have been designed for the midmarket from the very beginning.
But a failed ERP system can occur with any size company, and a successful implementation takes careful planning to succeed.
Step One: Your Needs AssessmentEnterprise resource planning is an all-encompassing system, not just a single piece of software. It's not meant to be an off-the-shelf solution, or all things to all people. You may find that you need certain functions and processes that another company would not, and in any case, you will need some level of customization. Before you even start reviewing vendors, you must determine what precisely you need and what is expected by all stakeholders within your organization. Conduct a thorough assess-ment by asking:
What are the primary business drivers? What prompted you to consider ERP in the first place? ERP can accommodate multiple business processes, with a primary focus on manufacturing, logistics, distribution, inventory, shipping, billing, and accounting. It is a highly strategic system that incorporates processes from nearly every different department in the company. Which of these areas require improvement? Is there integration between those different processes? Where are your biggest bottlenecks, and what do you hope to improve?
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Midmarket ERP Buying Checklist
Outlining the problems you are trying to solve, or the processes you are trying to improve, will help you identify and prioritize your needs.
Who are the key internal stakeholders? ERP implementations bring benefit because they are so far-reaching, but at the same time, that im-mense scope can be its downfall. Before beginning, identify all major stakeholders that will be af-fected by the project. Keep in mind that even if your primary focus is on streamlining manufacturing processes, the manufacturing operations area is not the only part of the company that will be affected. Streamlined manufacturing processes will filter out through virtually every other part of the company.
After you have identified the stakeholders, get them involved in the process early on. Their coopera-tion will be vital. Ask them what challenges they most often face, what tools they require, and explain the benefits of the greater level of operational integration that ERP will bring. These stakeholders should be involved in the decision-making process, including evaluations and product trials.
In addition to the major executive stakeholders, the end-users themselves should be kept in the loop to gain their cooperation and promote greater user adoption once the implementation is complete.
Do you have an ERP project manager?You will need to have a single "point man" (or "point woman" as the case may be) in charge of the en-tire process of planning, selection, and implementation. Some companies use an outside consultant for this role.
Do you have executive support?Executive stakeholders and departmental end-users are essential to success, but without buy-in from the C-leve... [download for more]