Erp purchase process | A Comprehensive Overview
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The document outlines a structured ERP purchase process involving various stages, including introduction calls, high-level demos, site visits, and negotiations, emphasizing the importance of dedicated resources and teamwork. Each step aims to assess fit, gather insights, and finalize project scope while warning of potential red flags to ensure thorough evaluation and stakeholder buy-in. It concludes with a reminder to embrace the process as a learning experience.
Erp purchase process | A Comprehensive Overview
- 2. @ElevatIQ What to expect? Is very long Could feel overwhelming for first-timers Commitment Requires dedicated resources from your team Methodology Structured methodology to support decisions Teamwork Involve your team to be successful with your initiative Surprise, surprise Plan for surprises Research Research on your own
- 3. @ElevatIQ The structure of the ERP purchase process Introduction 1st Discovery High-level Demo Site Visit SME Discovery Scripted Demo POC DIL Demo Scope Discussion SOW Negotiation
- 4. @ElevatIQ Introduction The process starts with an introduction call Purpose To assess if the product may be right fit Publisher/Consulta nt?If you are talking to a publisher, they will gather all details to identify a right consultant for you Evaluation SheetTo make the conversation less overwhelming, make a good sheet and log all conversations Most Importan t! Outcome Shortlist 3-4 consultants while keeping a few for backup Time ~25-30 mins with each consultant Tip (Search Queries to find local consultants) ERP Consultant Ontario Acumatica Toronto Infor CloudSuite Industrial (Syteline) New York
- 5. @ElevatIQ Discovery with the ChampionPurpose: gather enough details to meet the objectives of assessment, alignment, and scope Assessmen tContinue evaluating if the product remains fit for your requirements Alignmen tAlign on the complexity and Size of the project Scop eIdentify the scope for the demo Outcome: Decision on fit and preparation for the high-level demo Time: ~2-4 hrs. with each consultant Tip Prepare a package that can be shared with consultants beforehand to reduce the total time for discovery calls Red Flag If a consultant asks unnecessary questions such as “tell me how you do your business, ” it could be a red flag as it shows their lack of diligence and preparation on their end.
- 6. @ElevatIQ High-level Demo Purpose: review product without any configuration or customization. Relat eHelps you connect with consultants' questions better Confidence If you are still confident in consultants’ and products’ capabilities Shortli stFollowing this step, you would need more time commitment from your team Outcome: 3-4 consultants for the site visit Time: ~1-2 hrs. with each consultant Tip Avoid inviting folks from your team who may NOT have experience with an ERP system, OR they might reject it without fully understanding it Red Flag Pay very close attention to the look-and-feel and see if the experience is consistent across screens and devices, otherwise you might be looking at integrated products or with add-ons
- 7. @ElevatIQ Site-visit Purpose: to meet the team face-to-face and get a tour of the facility Critica lOne of the most critical step if you are a manufacturing or distribution business Reduce RisksHelps connect the dots by interviewing the field crew and watching them Culture FitOpportunity to introduce them with your team and assess if the team feels comfortable working with them Outcome: Evaluate and rank your consultants Time: ~2-4 hrs. with each consultant Tip Unless you can’t allow the consultant to shoot videos for confidential reasons, the videos will help them train their team and visualize your processes Red Flag If a consultant does not commit for an on-site visit, you might not want to continue with them. An on- site visit helps acquaintance with your consultant better and aligns the project and processes’ scope.
- 8. @ElevatIQ Discovery with SMEs Purpose: get more in- depth insight into high- risk areas. Outstanding Questionsrespond to consultants’ previously unaddressed questions and validate your shared details. Detail sWalk me through the algorithm you use to plan for your inventory, or segmentation of items for cycle counting Process Demo The consultant may ask you to demonstrate your processes in the current system or documentation for complex flows Outcome: Address unanswered questions and get buy-in from all stakeholders Time: ~2-4 hrs. with each consultant Tip watch your team members’ time to make the process efficient, limit to 3-4 consultants and introduce with your SMEs only for crucial questions Red Flag This is where rubber meets the road, so you want to watch if your SMEs are convinced on the solution.
- 9. @ElevatIQ Scripted Demo Purpose: provide a better sense of the platform by tailoring it to your business process and data. 2nd Most Critical Stepperhaps the second most critical step; requires the most amount of time from your team. Team ReviewInvite as many members to offer them first-hand experience tailored to their day jobs Relate Deeper Meant for team members who may not have IT or finance background, and may not have used an ERP before Outcome: Better sense of platform if the product would work for your business Time: ~4-8 hrs. with each consultant Tip The consultant would need to spend 1-2 weeks of efforts in preparation for this demo, ask for the scripted demo only from a few selected consultants Red Flag Watch for brush-offs. Don’t be sold on decks. Sometimes the vendor might not have product at all, and they might be selling a concept based on a deck, but would not admit
- 10. @ElevatIQ POC Purpose: technical integration and solution assessment for custom needs. Optional StepOnly required for custom needs for which an out-of-the- box solution may not exist. Un-demo- ableSince this is a custom integration or a solution, the demo of this solution may not be possible Solution FeasibilityMake sure the solution is technically feasible and get it reviewed by an experienced technical and IT project manager Outcome: Understanding of overall solution including custom-developed and integrated components Time: depending upon the complexity Tip Make sure you dig into the solution deep enough. If the consultant can’t describe how the solution would work, most likely they won’t be able to deliver Red Flag Inexperienced technical consultants may sound extremely confident with delivery and overcommit for everything.
- 11. @ElevatIQ DIL Demo Purpose: deeper-dive for stakeholders who were not sold on the solution during the scripted demo. Optional StepOnly required for stakeholders who may not be convinced on the solution during the scripted demo. Yet ImportantImportant step to ensure that everyone’s buy-in, or you might discover surprises at a later phase 1:1 Conversation1:1 conversation with these stakeholders help understanding their needs better and allow reserved team members to open up Outcome: Each stakeholder will get a chance to understand how they will perform their job on the platform Time: ~1-2 hrs. Tip Listen more and talk less with reserved team members. Ask open- ended question and read between the lines to ensure their conviction Red Flag If a vendor is not willing to commit time for these many demos, it may be a red flag that the opportunity could be too small for them.
- 12. @ElevatIQ Scope Discussion Purpose: finalize the scope for the quote and the project. Software Allows to confirm # of users required, their appropriate licenses for the software quote Services Allows your consultant to confirm the efforts and different skillsets required to complete your project Clarifications Provides an opportunity to ask questions and understand what to expect with your investment Outcome: Consultant will have enough details to print an official quote Time: ~1 hr Tip Ask questions unless you are clear on what you should expect with your quote. Red Flag Read fine lines. Software sales reps are crafty in creating quotes, so you want to review each fine line to understand the limitations and the scope of your project
- 13. @ElevatIQ Negotiatio n Purpose: walkthrough of the final SOW and any last-minute negotiation. Final PlanScope, schedule, implementation approach, payment terms and schedule, roles and responsibilities, support and training Compar eCompare proposals from different consultants and assess who has the most realistic estimates Price MatchJust because a vendor quoted higher, don’t ignore and ask for price match if you like their solution and are being reasonable Outcome: Consultant will have enough details to print an official quote Time: ~1 hr Tip Give each vendor a fair chance. Provide them feedback on where they lack, so they have a chance to counter with better financial offer for you. Red Flag Watch for overcommitments or future promises without written documentation.
- 14. @ElevatIQ Recap Introduction 1st Discovery High-level Demo Site Visit SME Discovery Scripted Demo POC DIL Demo Scope Discussion SOW Negotiation Be ready for ups and downs and embrace it as a learning experience. Recap Introduction 1st Discovery High-level Demo Site Visit SME Discovery Scripted Demo
- 15. Questions or Comments? Sam Gupta Principal Consultant US: +1-(917) 525-2535 | | CAN: +1-647-961-2661 sam.gupta@elevatiq.com https://www.linkedin.com/in/samguptausa/ 50 Fountain Plaza, Suite 1400, Buffalo, New York, 14202 7631 Priory Crescent, Mississauga, ON L4T 3H4 @ElevatIQ