Selecting A Modern ERP System
Best Practices




Now that you understand what an ERP is and how it can transform your business, it's time to evaluate vendors and select the right software for your business needs. It may seem like a daunting task but it's vital you select the right vendor and implementation partner or it could be a costly mistake for years to come.

We keep it simple with our free downloadable tool kit to help you evaluate and select the right vendor. Inside the tool set you'll find sample business requirements, business process maps, vendor scorecards, request for information (RFI) templates and top 10 questions to ask your ERP vendor.

Free download → 

8 Vital Steps To Selecting The Right ERP Software

Step 1 – Know ‘Why’ You’re Evaluating an ERP

  • Know that there is an issue
  • Know that there is a faster / better way
  • Know what is coming in the future
  • Clarify the vision

Step 2 – Put an evaluation team in place

It’s important to have an evaluation team, because each department requires different things. You’ll need to collaborate to make sure your ERP vendor is a fit.

The Executive Team / Steering Team is responsible to make sure there is a buy-in and needs to assign a project lead.

Step 3 – Map Out Current State

Your company's subject matter experts (SMEs) need to fully define your current state and understand what the future business requirements are. Business process maps are a vital part of this activity.

Business process maps will allow you and an ERP vendor to better understand the business workflows. If you have your own already that’s great! If you don’t, feel free to download our business process maps as an example template that you can build from.

You’ll want to map out each of the following:

  • Lead to Cash (LTC)
  • Order to Cash (OTC)
  • Procure to Pay (PTP)
  • Design to Build (DTB)
  • Project to Cash (PTC)
  • Record to Report (RTR)

Document Business Requirements

Each department has different requirements, you’ll want to document each of them across all departments. A good vendor will help you identify key business requirements and ensure your new ERP system will support industry standards and leading practices. If you’re not sure or need help identifying requirements and leading practices across each department give us a call and we’ll set a time to assist you.

Business Process Maps & Sample Requirements Questionnaire (Free Download)

Use them as a template or guide to get started mapping out your current business process and to understand your primary ERP requirements.

Download Free Tool Set → 


Step 4 – Create an Internal / External Scorecard

This will help you with evaluating a vendor’s ability to meet your unique business requirements. You’ll want to take your defined business requirements you identified in the previous step, assign a weight of importance to each requirement (ideally 1-5), and track a vendor’s response (yes, no, custom, or 3rd party add-on).

If you aren’t sure how to create a scorecard, below is a template you can utilize.

Free Download Sample Scorecard →


Step 5 – Create An RFI

You’ll want to create a vendor request for information (RFI) from the above scorecard that will define your company's requirements in detail, so potential vendors know what you’re looking for. Consider including the following:

  • Company / Background
  • Objectives / Purpose
  • Service / Work Requirements
  • Expectations
  • Mandatory Requirements
  • Preferred Experience
  • Pricing
  • Submission Guidelines

This will empower vendors to submit a proper proposal for evaluation.

Free Download Sample RFI →


Step 6 – Engage Vendors

Identify 5 to 10 possible vendors, call them, share goals, timeframes and expectations along with your Request for Information (RFI).

Step 7 – Schedule Tailored Demonstrations

Each vendor should be able to give you a tailored demonstration using your own sample data, so you can see and understand how a new ERP system will function with your data.

Your sample data should include:

  • Your Customers, Vendors, Projects, Items, BOMs, etc..
  • Sample Quotes, Sales Orders, Contracts, Purchase Orders, etc..

You’ll want to provide a demo script or outline to save you and the vendor time so that the focus is on what's important to see, in order to properly evaluate. Make sure all key decision makers are users are present for the demo.

You’ll want to use the internal/external score card you previously created and assign a score for each requirement during the live demo. Take on a don’t believe it until you see it attitude and be true to your evaluation score.


Step 8 – Vendor Selection

You’re getting down to the wire and it’s time for decisions to be made, but you want to be sure you make the right one. You’ll want to take the following steps to ensure you’re moving forward with the right vendor:

  • Match the vendor and software product with the requirement defined in the scorecard.
  • Call references to make sure you’ll enjoy partnering together and have a successful experience.
  • Compare costs between vendors (but don't make price the only/primary factor)
    • ERP Software, Implementation and 3rd Party Add-Ons should be considered with total cost.
  • Understand their ability to meet requested start and go live dates.
  • Is custom development needed? If so, consider the costs and timeframes accordingly.
  • Review all contracts and agreements in detail.
  • Is the vendor a strong implementation partner? This is often overlooked and can lead to much higher costs than initially budgeted for. You’ll want to be sure your implementation partner has the required experience rolling out ERP systems, so things go as smoothly as planned.
  • Executive review – everyone has to be on the same page to ensure you’re making the right decision with the right partner.

If you follow these 8 vital steps you're organization will be on the surefire path to breakthrough the barriers of growth.

FREE Vendor Selection Tool Kit: Selecting an ERP

Includes business process maps, vendor scorecard, sample RFI and top 10 questions to ask your ERP vendor.

Free download → 

 
  Next Steps
  1. Download The Self-Assessment - See how you stack up against your competitors and determine if an ERP is right for your organization.
  2. Understand the Business Value, Benefits and ROI of a Modern ERP System - Includes value (ROI) calculator.
  3. Selecting an ERP - Best Practices - Includes business process maps, vendor scorecard, sample RFI, and top 10 questions to ask your ERP vendor.
  4. Why Partner With goVirtualOffice - Our team of former CFOs, CPAs, controllers, business leaders and technology experts will bring you real world experience and best practices to your ERP implementation.
  5. Why NetSuite - #1 Cloud ERP.

Ready For A Productive Conversation?

goVirtualOffice specializes in helping businesses like yours select the right ERP system and implementation partner. Our team of former CFOs, CPAs, controllers, business leaders and technology experts will bring you real world experience and best practices that will ensure you have long-term success and a high ROI with your ERP, accounting and technology solutions. Give us a call today and let’s have a productive conversation – 888.773.2123.

Yes, I'm ready for a productive conversation → 

Next Steps
  1. Do You Even Need an ERP? - A quick self-assessment will help you determine if an ERP is right for your organization.
  2. Understand the Business Value, Benefits and ROI of a Modern ERP System - Includes value (ROI) calculator.
  3. Selecting an ERP - Best Practices - Includes business process maps, vendor scorecard, sample RFI, and top 10 questions to ask your ERP vendor.
  4. Why Partner With goVirtualOffice - Our team of former CFOs, CPAs, controllers, business leaders and technology experts will bring you real world experience and best practices to your ERP implementation.
  5. Why NetSuite - The #1 Cloud ERP.
Need Help?
Contact us today for help with your ERP evaluation. Call us at the number below or simply complete the form and we'll contact you right away.

Phone: 888-773-2123

Privacy Assurance: goVirtualOffice respects and protects your privacy. To view our complete privacy statement, click here.