ERP Selection - A Due Diligence Checklist
|
Categories
Enterprise Resource Planning (ERP) Archives
|
November 18, 2011 6:00 AM
As we close out 2011, we’re seeing many companies put ERP implementation projects on their 2012 dockets. For a large subset of these companies, it means wrapping up ERP selection projects and finalizing contractual terms before the holidays kick-in. These businesses are aiming to hit the ground running with implementation when 2012 rolls around.
The rush to get things done before the start of the holidays creates a risk that key due diligence elements will slip between the cracks. Compromising due diligence is no way to kick off a complex ERP implementation project.
For example, if a company cuts corners on the functional part of its evaluations process, it'll probably only learn that the software can't do what it needs it to during implementation. Then, it'll have to incur all kinds of implementation delays and cost-overruns trying to find a workaround. And, even if the company is lucky enough to find useful workarounds, these extra complexities act as a disincentive to end-user adoption. As another example, software that might be functionally appropriate won’t be of any use if it’s not implemented properly. That’s why it’s important for companies to properly scrutinize and incentivize their implementation partners before signing on the dotted-lines.
My point is this: ERP selection success requires much more than just picking a piece of software. It’s about setting the foundation for a complex restructuring project that's intended to take your business to the next level.
We've set out an ERP selection due diligence checklist below. This list includes many of the key factors that drive success in almost every ERP selection project. To print this document, click "share" in either the upper or bottom right corner and select "print".
For those looking for a more formal assessment, here’s a link to a fully-automated, free ERP selection risk assessment survey that produces a printable report upon its submission (take the test here).
ERP Selection - Due Diligence Checklist
Software Functionality |
|
| The software was successfully demonstrated according to our key business requirements | |
| The software was successfully demonstrated according to our key business requirements | |
| We are satisfied with the vendor's plan to fill any functionality gaps | |
| Our key departmental users participated in the demonstrations and are satisfied | |
| Based on reference checks with companies like ours, we are satisfied that the software is capable of delivering the functionality we require | |
Long-Term Fit |
|
|
The vendor is likely to be around for the long-term to develop and support the software |
|
|
The software is strategically important to the vendor and will likely continue to be a development priority |
|
| Based on reference checks with companies like ours, we are satisfied that the vendor will provide us with the level of future support we require | |
Implementation Partner Due Diligence |
|
| Our selected implementation partner has a track record of success with companies like ours | |
| Our selected implementation partner works according to a proven implementation methodology | |
| Our selected implementation partner has proposed a reasonable implementation plan | |
| Our selected implementation partner is a good fit with both senior management and our end-users | |
|
Based on reference checks with companies like ours, we are satisfied that our implementation partner will deliver a successful project |
|
Integrity of the Process |
|
| No vendor helped us define our ERP selection requirements | |
| No vendor helped us draft our request for proposal | |
| No vendor helped us evaluate the proposals | |
| All participating vendors were given equal opportunity to respond | |
| Our selection consultant (if we used one) is neutral, unbiased and vendor-agnostic | |
Contractual Rights and Obligations |
|
| We understand all of our financial obligations under the contract | |
| We have negotiated discounts that will allow us to accelerate our ROI | |
| We have negotiated terms and conditions that link our payment obligations to implementation success | |
| We have negotiated non-monetary terms that protect and extend our legal interests | |
Originally posted on Pemeco's Blog
| Blogger Profile: Jonathan Gross | |
|
Jonathan manages ERP selection projects drawing upon his experience as a commercial lawyer and his M.B.A. education to help clients select the right-fit ERP systems and negotiate the best deal. He is an industry analyst and advises boards of directors on issues relating to business, strategy and law. |
 |
