The question should address the company's business needs and concerns and each issue or question should be given a weight according to how critical that function is for the company. For example, if the company has offices in different countries, then the capability of handling multiple languages and currencies becomes an important criterion.
ERP Packages come in all sizes and shape, with all the frills, bells and whistles, gizmos and gadgets that you can imagine. Hence, it is a good practice to specify selection criteria for evaluating the packages that survive the pre-evaluation screening. The Criteria can be in the form of a questionnaire and a point system can be implemented. This will help in making the selection process more objective.
Likewise the selection criteria should be divided into categories - vital, essential and desirable - and points should be given to each criterion. This point rating system will simplify the evaluation process; but remember the importance of human intuition and judgment should never be underestimated.
The existing technology will playa very important role in the ERP selection process. Each organization will have its own technol9,gical environment: how the business is being done, what kind of hardware and software are in use, what is the database management system that is used for storing the operational and historical data, how is the data processing is done and so on. These factors can greatly influence the selection process in the sense that they can limit the number of packages, which are available for evcuatipn. It is for the management to decide whether ERP systems will be seles\ed keeping the existing infrastructure into considerations or the existing systems will not be considered (in which case some of them will have to be scrapped). But it is always better idea to find a package that is compatible with the hardware, software and technology that the company already has in place.
The best method for preparing the selection criteria is to conduct a requirements analysis - find out what the company needs. The requirements must reflect those factors that the company considers indispensable for the successful running of the business according to company's work culture and practices.
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