3 Steps for Selecting Your Cloud ERP Solution
Choosing and implementing a cloud ERP solution is an investment for SMBs, so it’s critical for companies to take an organized approach when evaluating their options before making a decision. Because of this, it is important to note that you should not select your ERP solution on any single aspect of a system’s features, particularly the method of deployment.
Each ERP solution offers different features, representing pros and cons that are relevant depending on an organization’s needs. Cloud ERP selection must take into account all the various features and factors and how well they meet business requirements, and not be based solely on whether the ERP is offered as a cloud or on-premise solution.
Selecting A Cloud ERP Solution
1. Create an ERP functionality requirements list
Before deciding on a cloud ERP solution, it is important to explore ERP options by creating an ERP requirements list. Clearly delineating the business needs for the system, currently and in the future, as well as stakeholder expectations is one way to ensure that ERP implementation and adoption has the best chance for success.
This list should begin with the features that you will require of an ERP solution. Relevant questions include:
- What are some functionality gaps in current business processes?
- What business challenges can an ERP solve?
- Which features will be used immediately?
- Which features can be added in the future?
- Is customization available?
- Is the solution scalable and flexible enough to meet future needs?
- Do I have deployment options to pick from, now and in the future?
Because an ERP system can encompass many different departments and processes throughout the company, it is essential to understand the needs of all potential users of the system. Surveying stakeholders throughout the company not only helps a decision-maker to ensure that the ERP solution meets all needs, but it also promotes user engagement once you implement the new system.
2. Create implementation requirements list
It’s important to understand whether a cloud or on-premises deployment will best suit the organization.
Understanding the system requirements of on-premise versus cloud ERP solutions can help an organization to make the decision that best meets their needs. This will also help to determine the total cost of ownership of the system while avoiding potential hidden costs and responsibilities down the line.
3. Define measures of success
Once your organization has a deep understanding of how it will use and benefit from the ERP solution, you can define the ERP success metrics. Measures of success could include streamlined processes, shorter business cycles, customer satisfaction, reduced costs, adoption rates, and more. Knowing how stakeholders will measure success, and setting procedures in place to gather the necessary data is vital to proving the success of the operation as a whole.
After feature requirements have been clearly defined, the network has been assessed, and success has been planned, an organization can move on to the next steps in selecting an ERP system.
A selection team of key stakeholders should be gathered, a vendor shortlist created, and an RFP should be constructed and distributed to potential vendors. When the RFPs are returned, the selection team should review all proposals based on critical factors in a standardized manner.
Not only does this allow an organization to meet the needs of employees throughout the organization, but it also helps to drive engagement by involving different departments throughout the process.
To learn more about how Third Wave enables companies to implement scalable ERP solutions and drive transparency and growth throughout an organization, schedule a customized demo with a Third Wave expert today.