Overall ERP system selection process

To ensure that each ERP system and associated vendor is evaluated using the same standard, a flow chart is developed using information gathered from the initial stakeholders. The main information which sat at the top level of the flow process is the identification of the problem being solved with the adoption and implementation of an ERP system. The steps taken to invite vendors start first with showing interest in their solution and inviting them in to demonstrate how their solution matches with what the organisation requires. This is mostly in the form of a fact-finding meeting for the vendor to understand what features the organisation requires, as well as the organisation making its service processes clearer to the vendor, in order for the vendor to fully justify how these processes could be met with the intended system. Figure 4.11 below shows a detailed flow chart which is used as the guide during the ERP functionality and vendor evaluation.

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new solution

Company search f or potential solution/prov ider

Identif y potential solution/prov ider

Initial v endor demonstration on how solution can solv e Beta needs and ev aluation of

needs and gaps

Discussion to proceed Phase 2 demonstration required ?

Draf t demonstration of solution, gap analy sis and customisation needs

Satisf ied with solution ?

Vendor compatibility ev aluation/audit

Accepted ?

Draf t proposal, customisation, quotation, implementation plan and ongoing support

plan No No No Y es Y es Y es No Y es

Implementation: Trial and Go-Liv e Satisf ied ?

Y es

User satisf action sign of f

On-going support No

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The flow diagram above highlights the various steps taken to review each potential vendor as well as the options identified as potential solutions. The process started when the organisation identified a problem within the business process, which could be solved using specific enterprise resource planning (ERP) systems. The researcher then proceeded to explore available ERP solutions and vendors, with the objective of inviting suitable solutions and vendors for a demonstration on how the solution intends to meet the organisation’s features/functionalities and help to make the business process leaner. Further on, the solutions are critically evaluated to ascertain those solutions that will provide a possible match to the features without creating further problems in the business process.

To get the functionalities completely mapped out, the table in fig 4.12 was used to map organisational business process needs to features contained and demonstrated in each solution. The product evaluation will be discussed in more detail later in this chapter. After initial product and vendor review which, in most cases were carried out on the product website, a decision was made as to whether to proceed with the product or not, based on the product functionality and vendor assessment. If the information on the product and vendor website indicates the need to invite the vendor in for an interview to demonstrate the system, then the vendor is invited to demonstrate the system. If the information suggests that the company does not want to invite the vendor in, then the product is dropped. The vendor is interviewed during the demonstration and, although it might not be possible to make a decision on a vendor or solution during one demonstration, the process can be carried out until all relevant information required for the decision making phase are obtained. This could include the vendor taking requests on requirements that were not clearly demonstrated, which is then passed on to the vendor’s development team to clarify how the solution handled such requirement. As a result, a further demonstration was held to clarify how the solution met the requirements. A major issue to clarify while at this stage is the level of customisation required to get the solution to adequately fit into the business processes of the action case SME.

When a decision is made on shortlisted solutions and vendors, only then will there be need for drafting a scoping for the company. It is highly important to understand the cost associated with the solution and what extra customisations could cost the organisation. For example, if there is

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associated cost, time and implication on various modules in SAP Business One, which inter- relates with the calendar. Having extensively reviewed each of the solutions against the requirements, as discussed below, and products and vendors shortlisted, an extensive review was carried out with representative of all stakeholders of the project (excluding vendors) to identify the most suitable, cost effective and reliable solution and vendor. The emphasis on vendors is because, although the solution has been purchased, the organisation requires a reliable vendor to carry on with after sales support. Identifying the final solution then leads to signing off and then into the solution implementation and after sales support.

These steps can be increased or reduced depending on the clarity of features demonstrated during various stages and can also change from vendor to vendor, because some vendors could want to have fewer visits to the customer’s site than others.

A summary on the step discussed above is given below:

1. Agree and add weight for each criteria in the feature/service evaluation grid (fig. 4.12) 2. Breakdown the applications into groups:

- SAP Business One Addon.

- Applications that integrates seamlessly with SAP Business One. - Third Party software.

3. Identify the top three within each section.

4. Identify the top three service solutions and install demos. 5. Get target users to evaluate demos of installed service demos. 6. Further evaluation of demos.

7. Follow up references, including site visits, as recommended by resellers. 8. Study potential contract and make changes where appropriate.

9. Install pilot application.

10.Final decision by management (based on information on outcome of evaluations done above).

11.Produce training materials and train staff. 12.Final deployment and ongoing support.

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In order to maintain a levelled and structured approach in terms of selecting suppliers, a set of guidelines were followed with structured questions used, to gain a better understanding of the resellers and the level of their understanding of the product and subsequent support available. This structure is as given below:

 Developing a thorough understanding of the suppliers/vendors — who they are and what

the organisation would be purchasing from each of them — which would allow Alpha to negotiate better contracts, streamline the supply chain and minimize risk. These objectives are met by having a meeting where the researcher and the organisation explained who they were, what problem existed and the vendor demonstrated how their solution could be used in solving the identified problems.

 Measuring IT service delivery levels to ensure that scarce IT resources are deployed as effectively as possible to support business strategies.

 Evaluating financial performance, regulatory compliance and exposure to financial risk to create future value for the organisation as well as ensure the supplier will continually be available to support the IS system. This mitigates the situation which the organisation currently found themselves in, which was as a result of one of their current reseller seizing to operate as a business.

 Understanding how the reseller plans to roll out training, both pre-implementation and post-implementation, in order to align with the organisation’s strategic system needs and objectives. (This includes training for the company specific contact for the solution).

 Identify changes in processes, which needed to be made for successful implementation and usage of the potential solution to better align to usage, monitoring, control and improvement actions.

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4.2.2 ERP service management functionality evaluation and vendor mapping