A new ERP solution can dramatically upgrade a business with added visibility, automation, and more efficient operational processes among many other benefits. However, when buying ERP software, some essential implementation questions should be asked before purchase.
Some of what a business needs to know when buying ERP software are the same across industries and businesses, but other questions are more about matching the correct ERP solution for a business.
The reason these questions are so important is that every new ERP rollout is a significant project, even with a relatively turnkey cloud solution. ERP touches all parts of a business and is the foundation for operations, encompassing all of a company’s business processes. So choosing the right ERP solution is important, and understanding the implementation process is key for avoiding delays or implementation project failure.
With that in mind, here are five questions you should be asking before buying ERP software.
Key Questions When Buying ERP Software
First, a business must understand why it is seeking a new ERP solution, and understand both its processes and requirements for the new solution. Buying ERP software starts with fully understanding your business inside and out because selection isn’t possible without that.
But then there are some important questions you should ask about the ERP solution and implementation.
1. How does the ERP solution meet specific business requirements?
Unless your business is a startup, you probably already have workflows and business processes in place. Some of these should be adapted to fit the industry's best practices baked into a good ERP solution, while others should be supported natively by the ERP system. All processes and needs must be addressed in the ERP solution, however.
So when going through the selection process as part of buying ERP software, define each need of your business and match it against the ERP solution’s functionality. Get specific, too; understand exactly how an ERP solution will handle each need, be it integration with a particular cloud fulfillment platform or a financial workflow such as zero costing.
This helps both with solution selection and with understanding the path forward for ERP implementation.
2. What is the implementation timeline and the resources required for rollout?
ERP implementation timelines can vary widely based on the solution chosen, the implementation partner selected, and the scope of the rollout.
An ERP can be implemented in as little as 90 days as it was with contract pharmaceutical manufacturer TriRX when it rolled out SAP Business ByDesign with a standard implementation, or it can drag on for years like it did when retailer Kohl’s put in a new Oracle ERP solution a few years before the Covid pandemic.
It is important for your business to understand the implementation process and the inputs it will require before buying ERP software and embarking on that implementation journey.
3. What is the total cost of ownership, both initially and on an ongoing basis?
The cost of ERP is more than just the monthly price of the total number of seats a business will require. The total cost of ownership includes implementation costs, add-on modules, custom development, training, and staff time, as well as any maintenance that might be required. (Oh, and hardware costs if your business doesn’t go with a cloud-based ERP solution.)
Certainly, the ongoing monthly cost of a cloud-based ERP is important, but there can be many hidden costs depending on the ERP vendor selected. Netsuite, for instance, often comes in at a low price point but then the real cost balloons thanks to the need for custom development or add-on modules that come at a premium.
So make sure you have a good grasp of the nuts and bolts of TCO when buying ERP software.
4. How will data migration and integration be handled during implementation?
One critical task during ERP implementation is importing data into the new system and setting up integrations with vendors, marketplaces, cloud services, and other software used by the business.
The integration process and the ease with which your business can connect data flows with your new ERP is a significant gotcha that trips up many otherwise solid ERP rollouts; the number of times we’ve been brought in to help a business with integrations that just don’t work properly is legion. So get clear on what will be integrated and how it will be done.
Importing data from legacy systems also is a big task that either is simplified or complicated by the technology and processes of a given ERP solution. Ask and get clear about how the ERP solution will handle data coming from legacy applications such as financial management software, CRM, HR systems, etc.
5. What Support and Training Resources are Available?
Change management and onboarding employees can make or break an ERP implementation. With good training and clear onboarding processes, employees can understand the need for new processes and how to use the ERP solution. Without proper training and support, Betty in payroll will fight against adoption and subvert the ERP system whenever possible. You don’t want Betty in payroll fighting against your backend system.
So an important question you must ask when buying ERP software is how onboarding and training will happen. What resources are available, who will be providing this support, and what sort of support community exists if your business gets in trouble with understanding the ERP system and either how it works or how to make it do what is required?
Will there be initial vendor support and then your business is on its own? Will there be a support partner on call when additional help is required? How is onboarding and training handled with this ERP solution generally?
There are additional questions you should be asking when buying ERP software, of course. But these five questions are some of the most important when it comes to implementation and picking the right ERP solution.
If you need help with ERP selection or rollout, learn more about how we can help, or contact one of our experienced ERP consultants directly by calling (801) 642-0123 or writing us at info@nbs-us.com.
