10 Tips for Switching and Choosing Your Information System
Every modern company is in constant state of development and an old information system or several software tolls, patched together, may not be able to keep up with it. How do you know the time has come and how can you prepare your business for the switch and selecting a new system? Here are our 10 tips for choosing your new system.
Recognize the Right Moment
Think about the smoothness of your company’s internal processes. Ask your managers, key users of the information system and its administrator at the IT department. Can your current system link with other applications? Can it accommodate new processes and innovation? Is it in compliance with current regulations? Does the supplier answer to your needs? Is the answer no? Then it is time for a change.
Form a Stable Project Team
From the very beginning, you should see the system switch as a project, because no matter which system you choose, you will need a stable project team. Choose a strong leader and project manager, who will be able to push the change and see it through to a successful end. They will also work together with the supplier on implementing the new system.
Identify the Areas, Agendas and Processes within Your Company Affected by the New System.
Look carefully at how the whole is running and do not limit yourself to the areas covered by your current system. A new system is an opportunity to make the management of new processes efficient, integrate with a new solution or to remove processes which are no longer optimal and are a burden on the running of the company.
Define Your Functional Needs
Define the needs the new system should meet in the various areas of your business. In this step, it is important to realize that your employees are used to working in the current system, which can affect their horizons. Get rid of all of your current processes and define your needs based on purpose; do not try to design the solutions straight away.
Consider All Additional Services and Benefits Offered by the Suppliers
In order for you to be completely satisfied with your new system, you must do more than just define your functional needs. Ask the supplier about the factors in your long-term partnership; they are no less important. What services and training does the provider offer? How much would maintenance be, yearly? Is customization possible?
Narrow Your Search for Suppliers and Ask for an Indicative Offer
Now that you have defined your needs, assign a value to each of them. Map information system providers and narrow your choice down to a maximum of ten, based on the weight of your needs. Ask the supplier for an indicative offer based on your commission document. A responsible supplier will set up a meeting in person in order to create a custom offer for your company.
Define a Budget
Your budget for implementing a new system is one of the key starting parameters. Define how much you want to spend based on the indicative offers you receive and add a buffer of about 20% for the future changes. Calculate the return on your investment, which may include savings on human labor.
Keep up the Pace of the Selection Process
The selection process should last about two or two and a half months. Do you think that’s too short? On the contrary. Always try to keep up the dedication of the users and the pace of fulfilling the individual steps. Delays, silence and waiting only lead to chaos, when you become confused about who presented what.
Carefully Set the Selection Criteria
Within the selection process, assign weight to the individual criteria you are comparing – e.g. the price, system functions, references. The project leader should assign point values to the objective criteria, while the subjective criteria should be up to the key users – we suggest anonymous voting and evaluating the results afterwards.
Ask for a Reference Visit
Ask for a reference visit with a customer with a similar business and watch how they use the system in their company, how the system grown with the company and how regular users work with it. Ask questions about everything you want to know.
We would be happy to help you choose your information system. Contact us.
If you pay enough attention to choosing your system provider from the start, you will reap the benefits of a long-term, mutually beneficent partnership. Our tips are a basic framework for the challenging process of selecting a new information system.
Would you like more information about each of these points? Download our detailed manual, which will guide you through every step of the selection of an ERP system. It also contains tips and advice on how to avoid the most frequent mistakes, which can cost a company a lot of time and money.
