The SoftSelect ERP Selection Process Details
Phase 1: Business Review/Develop ERP Long-list
1. Project set-up and training
As with any complex and critical initiative, preparation is essential to lower barriers to success. Leveraging insights from over 1,000 projects, we have refined our methods to help both our team and clients effectively prepare for enterprise software initiatives. A few hours of structured meetings, presentations, and team discussions are dedicated to fostering project continuity, maintaining momentum, and achieving quality outcomes.
3. Business process area discovery
Business process interviews are conducted to identify functional requirements within the ERP scope that are not routine for the class of ERP under consideration. Additional benefits of these interviews include:
- Enhancing participants’ understanding of and confidence in the ERP project.
- Revealing valuable insights such as process improvement opportunities, existing challenges, and areas of uncertainty that will inform implementation planning.
To increase effectiveness of these interviews, business process area representatives receive preparation training beforehand.
4. Enterprise Business Application Strategy – Where ERP fits
A company’s enterprise business application landscape and go-forward strategy play a critical role in defining the breadth of business processes that ERP should support. Using insights from business process interviews and EAI-SoftSelect’s expertise in ERP functionality tailored to company size and industry, we closely estimate the ERP boundary. When this application strategy is unclear, companies risk selecting unsuitable software, leading to implementation obstacles and higher initial and ongoing costs.
5. ERP software Long-list development and discussion
This step relies on EAI-SoftSelect’s deep knowledge of ERP systems and other business software. Key factors in developing a client-specific Long-list include:
- The ERP application’s track record in companies similar to the client.
- The ERP application’s and vendor’s sustainable momentum and future viability.
- The vendor’s history of customer support and treatment.
A comprehensive briefing and discussion of the Long-list is provided to instill confidence in your selection team and executives regarding the initial candidates.
6. Locate appropriate ERP resellers
ERP solutions are often sold through resellers who are also implementers of the software. Because of this potential to serve as an implementer, suitable resellers are screened based on the following criteria:
- Relevant implementation experience in the client’s industry and company size.
- A capable and adequately resourced consulting team with necessary expertise.
- Proximity of key consulting resources to the ERP buyer.
- Flexibility to adjust typical methods for clients who require direct control over the implementation process.
The results of implementer reviews are captured in a weighted scoring matrix.
Phase 2: ERP Software Long-list to Short-list
1. Identify key ERP functionality objectives
This step involves creating a list of ERP functionality objectives by analyzing the results of strategic and business process interviews. The aim is to identify key functional requirements that hold high value to the ERP buyer and are not considered standard for the ERP candidates under review. The buyer’s team reviews and refines this list before it is used to evaluate the candidate ERP.
2. Test ERP Long-list ability to support key functionality
This step includes a structured evaluation of each candidate ERP’s ability to meet the buyer’s functionality priorities during the ERP Introductory Event—a 2.5-hour session. Key steps include:
- Preparing ERP presenters to focus on the buyer’s priorities and maintain an appropriate pace.
- Conducting ERP Introductory Events with the company’s selection team that score each session using standardized methods.
- Reviewing results from these events to determine the team’s consensus on performance.
- Generating an ERP functionality performance score for each candidate and entering it into a comprehensive ERP evaluation matrix for later review.
3. ERP cost and terms control
EAI-SoftSelect leverages extensive expertise to manage costs and negotiate favorable commercial terms for ERP applications. This process bridges selection phases-2 and -3 and applies to both subscription-based and owned ERP licenses. Key steps include:
Develop ERP Access Cost and Terms Objectives: In this step, we collaborate with your team to:
- Define buyer’s ERP access requirements, including breadth of business processes supported, user types and quantities, device access, and geographic locations.
- Set ERP access cost objectives using EAI-SoftSelect’s expertise on achievable pricing and ongoing cost control measures.
- Train the selection team and executive sponsors on vendor negotiation techniques to improve confidence and resilience during the high stakes arena of cost and terms discussions.
Present ERP Access Cost Objectives to Candidate Vendors: This step includes:
- Identify appropriate vendor contacts and brief them on structural cost control goals. Specific cost amount goals are not discussed initially.
- Secure vendor acknowledgment of these goals to strengthen future detailed ERP access cost negotiations.
ERP Vendor Interaction to Achieve Targeted Costs and Terms: This step is typically conducted with the final two ERP vendor candidates during phase-3. It is an iterative process requiring variable amounts of time based on attributes of the finalist vendors and specifics of the company’s selection project. Key aspects include:
- ERP Access Architecture: Understand each vendor’s access rights structure (user types, modules, add-ons, etc.).
- Alignment with Company Needs: Align company ERP access requirements with vendor specific licensing architecture.
- Target Costs Developed: Using results of the prior alignment step, develop target costs for ERP user types, add-ons, and other potential ERP elements and brief ERP sellers on these targets.
- ERP Pricing Offers: Request and evaluate initial pricing proposals, including costs for initial and projected future access, and negotiate further as needed.
- Commercial Terms: Review and mark up vendor contracts with help from EAI-SoftSelect’s commercial terms checklist to highlight areas requiring clarification or adjustment.
- Finalizing Terms and Costs: Negotiate further with the two finalist vendors to secure the best terms and costs, leveraging this time of maximum buyer influence.
ERP Managed Service Provider (MSP): If the buyer requires remote ERP hosting, explore options beyond vendor-controlled subscriptions. Key steps include:
- Identifying potential hosting providers.
- Evaluating offerings against project criteria.
- Reviewing initial cost plans and terms for cost escalation.
- Examining standard commercial terms and proposing necessary adjustments.
- Finalizing the hosting provider selection.
Phase 3: ERP Short-List to Software Selection
1. Plan and conduct ERP demonstrations
Steps and execution details include:
- Demo Plan: Develop a detailed ERP demonstration plan that expands on the earlier ERP Introductory Event functionality specification.
- ERP Vender Preparation: Coordinate with the candidate ERP representatives, preparing them thoroughly to execute the detailed ERP demonstrations.
- Demo Location: Conduct demonstrations either in person (typically within a one-day event) or over 4 to 5 remote sessions spread across several days.
- Leading Demonstrations: The EAI consultant provides skilled leadership during demo events to help ensure they remain focused, consistent, and relevant, enhancing your team’s experience and confidence in the results.
- Follow-up Events: Schedule additional focused demonstration sessions if needed, based on the volume of functions to be demonstrated or participants’ interest in specific areas. These follow-up events are typically conducted remotely after the main demonstration.
2. Implementation services and cost review
Key factors in screening candidate implementation service providers include:
- Skill and Capacity: Evaluate the skills and capacity of proposed business process analysts responsible for strategic and enterprise business process design.
- Costs: Assess hourly rates for various consulting roles and other service terms that impact total service costs, such as travel expenses.
- Commercial Terms: Review and modify the provider’s commercial terms to achieve proper buyer controls. Then work with provider to arrange modifications—which most accommodate. To improve results, EAI-SoftSelect employs a comprehensive terms objectives checklist, which includes candidate contract language.
The ultimate implementation results and costs are largely determined by the skill and capacity of the key implementer personnel, as well as the effectiveness of the buyer’s project leadership. Consequently, the seller’s total cost estimates for the implementation should not be overly influential. Their service proposals are designed to appeal to potential buyers and alleviate concerns, frequently including exaggerated methodology claims and overly optimistic cost projections.
3. Reference checks for finalist ERP and implementers
References for ERP functionality and usability may have limited value due to implementation issues caused by the ERP customer. Additionally, functionality and usability questions should have been largely addressed during properly orchestrated ERP demonstrations. However, they can provide insights into:
- ERP Hosting Stability: Evaluate application speed, downtime, and overall hosting reliability.
- ERP Support: This refers to ongoing support function to help buyers with ERP usage questions and technical issues. Ask about the skill and availability of such support.
- Vendor Relationships: Assess the long-term stability of the commercial relationship with the ERP vendor.
For implementation services, focus references on:
- ERP Implementer Culture: Is the company run well? Able to respond respectfully to client requirement? Realistic and honest in discussions?
- Expertise and Capacity: Evaluate the skills and performance of key personnel proposed for the project.
- Adaptability to the Highly Prepared Buyer: ERP buyers that understand the importance, and are prepared, to comprehensively lead their projects will find many typical implementation methods unsuitable. Therefore, can the implementer adapt?
Avoid broad questions like "Did the implementation go well?" as these often yield subjective and less useful feedback.
4. Evaluate ERP and implementer findings
The core project team develops the ERP selection recommendation based on:
- Results of ERP application functionality demonstrations.
- Strength of ERP tools for development, workflows, metrics, and integrations.
- ERP hosting options and technical capabilities.
- ERP software access costs (initial and ongoing).
- Commercial terms for ERP access and services.
- Talent, terms, and rates of the proposed implementation teams.