Often, when selecting a new ERP system, a Request For Information (RFI) is sent to a number of software vendors. In short, a list of requirements and wishes regarding the functionalities of the ERP package to be selected. After all, this is an important decision for your organization and so you want to ensure as best you can that the system meets the most important needs. Very logical...yet it is better not to do this.
You ask about what you already have....
...and not to what you need. When preparing the RFI for your organization, it is inevitable that you are thinking from the current situation. As a result, you're asking for a copy of what you have now, but in a modern guise and with a few additional features that come to mind. Now is that worth all the time and energy of surveying the needs of all the company's departments? If you have hired an external consultant for this, it will also cost you a lot of money. Much more effective is to formulate a clear vision of where you want to go as an organization in the coming years. It is then up to the specialists of the software partners to make it clear to you how their ERP system will support you in this. That way, you get what you need!
How reliable are the answers to an RFI?
It seems so simple; a list of requirements and the vendor fills in whether this is part of the standard solution, customization is required, a work-around is possible, a third-party system provides the solution or it is simply not possible to meet the requirement. Then after that, you know exactly where you stand, right? Unfortunately, the reality is different. Many software vendors will tend to fill out your RFI a little too positively. After all, they still want to be in the race at the next step in the selection process. So at the RFI stage, a lot of standard options are still possible and every party on your list seems to have a great solution.
Other potential problems, making you question the reliability and value of completed RFIs:
- Your questions/requirements may be misinterpreted or misunderstood.
- Or you ask something that cannot be answered immediately because more information is needed.
- Or you're asking for something you don't need because, e.g., it's outdated technology or there's an alternative (better) method.
ERP is not about functionalities
Creating a long list of requirements and wishes assumes that ERP software is all about functionality. As long as you have enough buttons and options, you'll be fine. But an ERP selection is a strategic choice; as an organization, you want to achieve your long-term goals, such as expansion into other markets, revenue growth, profit maximization and professionalization, and the ERP software should help you do this. Therefore, do not prepare an RFI, but make sure you have a clear vision of where you are as an organization now and what you want to achieve in the future.
So how should you go about it?
- Define your strategic goals: make sure you have a clear picture of where you want to grow as an organization, which will form the basis for your ERP selection.
- Explore what the options are: delve into what is available in the market, what differences there are between the software parties, what benefits you can gain from the software, etc. This can easily be done on your laptop in your own time.
- Check with industry peers: no one can tell you better what software is good than similar companies in your industry. Get in touch with them and get informed.
Philip van Kemenade is marketing manager at Dysel and has daily contact with end users of software.
