1. ERP software selection
By
Indah D Lestantri

2. Objective
To highlight the issues in selection an
ERP software
To learn the guidelines in ERP software
selection

3. Vendor ERP software
The first : SAP
oracle, BAAN. JD Edwards,…
Open source ERP software

4. Issues in ERP software selection
simple
Various component
complexity
Cost is high
Resource people
ERP
difficult

5. Various reason that make the ERP
Lack of clarity about the customers requirements
Complexity in the business processes
Increased number of ERP vendors
Lack of better planning
Resistance to change
Project cost
Integration, upgradability, adaptability and
applicability of software

6. ERP software selection criteria
ERP implemented in organization
Implemented of ERP is various ( smalla,
medium, or large)

7. Factors to consider while choosing
of ERP product
Increased transparency and better
information flow
Easy maintenance, adaptability and
flexibility of software
Reduced cycle time and lead time
Process improvement
Enable with multi lingual and multi
currency features

8. Factors to consider while choosing
of ERP product (2)
Increased customer satisfaction
Modular architecture of software
Higher software reliability
Market position of vendor
Implementation of desired business
processes
Operating system independence

9. Methods in ERP selection
The decision is made by top management with the
inclusion of external consultants
There is a centralized type of selection process in place,
characterized by a strong focus on the IT and
organizational department with only little participation of
other internal departments and no employment of
consultants
The decision is made taking into considerations the
suggestions given by several departments of the
organization whether they are going to be a user of the
ERP system or not
Using a combination of all the three steps given above
as when there is a need

10. ERP software selection process
Phase 1 : Initial requirements
Phase 2 : Developing the short list of
candidate solutions
Phase 3 : Final selection
Phase 4 : Implementation planning

11. Phase 1
We want to get to know our team, plan
and discuss the big project
We administer a series of quistionnaires
and conduct interviews with our project
team

12. Phase 2
This phase help us establish a list of high
level differentiators.
We compare the candidate solutions
We analysis of qualitative factors

13. Phase 3
Final ERP software and vendor selection

14. Phase 4
Every software vendor has a plan to make
their implemented succeed
And after going through the first three
phases, they will have a better
understanding of their business
processes.

15. Important factors influencing the
ERP vendor selection
Functionality of ERP package (24%)
Vendor’s reputation (26%)
Vendor’s ability to provide a complete
solution (16%)
Project costs (23%)
Future software maintenance provided by
the ERP vendor (11%)