“You can’t get the right answer till you ask the right question.“
These wise words certainly apply to an ERP selection project.
Consider the most effective ERP questions to ask an ERP vendor, with an emphasis on total cost of ownership (TCO). These questions are particularly relevant when options such as a software as a service solution or hosted ERP are under consideration.
Questions for ERP Comparison
When we team with our clients, we usually group ERP system questions into important categories and then guide the selection team through an “apples to apples” comparison.
From a TCO perspective, the analysis considers IT acquisition costs, costs of deployment, implementation, maintenance fees, support, backup and security systems, customization and configuration, data integration, user adoption and other areas.
In addition to these direct costs, we take the time to consider indirect costs such as required resources to manage information systems and a data center, if needed; the energy and space required for a modern data center, and any necessary capital investment in physical hardware and communications equipment.
We also suggest clients consider the opportunity cost tied to all of their expenses and especially to capital expenditures.
Considering The Solution Platform
Many times, a selection project compares systems that are delivered through a variety of platforms – whether on site, co-located, hosted or delivered as a cloud solution.
In that case, we make sure to consider the assignment of costs for each of the scenarios. As an example, we put a special focus on whether the vendor or the client is responsible for costs in these areas:
- Software updates
- Physical location (server room)
- Utilities
- Security
- Disaster recovery
- Communication lines between facilities
Again, asking specific questions addressing each of the areas noted above clarify which party is responsible in terms of resources, costs and ownership. It’s all part of our strategy of delivering critical insights to our clients.