Buying ERP Technology Solutions - Using Agile sourcing
Author: Melanie Humhries
CEO
BUYING ERP TECHNOLOGY
Procurement of ERP platforms and implementation services can be a minefield, extensive requirement gathering and conflicts between the business and technology needs of the business hard to overcome. Everyone has a view on platforms they've used before!
What's most important to assess to get an unbiased view when it comes to buying ERP platforms and implementation partners?
WHAT
In our experience, establishing common ground between the technology requirements and the functional business requirements is key, building Desired Outcomes helps to create a 'north star' to assess if products will fit the bill.
HOW
Establishing whether a platform meets your needs;
(a) natively, out of the box
(b) through some configuration,
(c) with an API to another product, or
(d) through development
is critical. A clear idea of the functional taxonomy and how this is achieved is key and should lead your choice together with price.
WHEN
In our experience, establishing common ground between the technology requirements and the functional business requirements is key, building desired outcomes helps to create a north star to assess if products will fit the bill.
HOW CAN AGILE SOURCING HELP IN ERP PROCUREMENT
AGILITY
In our experience establishing common ground between the technology requirements and the functional business requirements is key, building desired outcomes helps to create a 'north star' to asses if product will fit the bill.
COLLABORATION
Moving away from arms-length, to collaborative processes enables you to test the 'can we work with these people' question. It is vital this is part of your assessment and is so much easier to do with agile sourcing.
PRICE
Using an agile sourcing approach reduces the cost of the platform licenses through a clearer understanding of requirements and how these are delivered by the platform. Agile sourcing also reduces implementation partner costs through collaborative working to a solution, thereby reducing the risk of the unknown, and the contingency supplier may otherwise build in.
TOP TIPS FOR ERP PROCUREMENT
- Reconcile technology and business requirements through functional fitness and non unctional fitness assessment and clear mapping to desired outcomes.
- Run an agile procurement approach to keep flexibility to platform and implementation partner selections.
- Establish the benefits to the whole business using desired outcomes and don’t be afraid to use collaborative approaches to reduce risk and price.
