When a global corporation launches an ERP Software project, it will frequently release an RFP (request for proposal) to potential providers to obtain further information. Next, they will look over the comments and restrict their selections to a shortlist of goods they want to provide demos.
But what if your organization is small to medium-sized? Does an RFP still make sense in this case?
While most SMBs (small to medium-sized businesses) choose to do their own Enterprise Resource Planning analysis, there are situations when an ERP request for proposal is acceptable.
With this post, we will help you understand why RFPs are crucial for ERP selection and point you in the direction of the one that makes the most sense for your business.
What Makes RFPs Critical to ERP System Selection?
Comparison between systems is possible
The RFP’s inquiries and replies form the basis for detailed comparison in terms of capability, detailed investment, vendor implementation strategy, and so on. When it comes to ERPs provided by Value Added Resellers (VAR), the RFP should highlight essential services and experiences of the VARs to verify they are a suitable fit for your company. VARs commonly operate in a variety of businesses.
Establishes a systematic selection process
Using an RFP and this selection approach will help you make the right application decision. Usually, system selection campaigns must be structured across months rather than days. You can keep track of and compare your observations, inquiries, and findings with a well-organized methodology and RFP process.
Putting You in Charge of Determining Requirements
The Request for the Proposal writing process is an internal exercise and discipline for your company to define your information systems requirements and goals for the new system. It is also the ideal way to get everyone on the same page and buy in from various departments inside your firm.
Makes you consider ROI
Many firms struggle to show ROI, whether vendor or client when it comes to buying a new IT system. Analyzing one system’s functional differences and benefits over another should inspire you to think about how the proposed system would deliver a return on investment (ROI).
Demonstrates products with ease
What are the most vital features for your business when selecting a new IT system? Focus the questions and analysis for the demos on the most critical functions, rather than just the appearance of cutting-edge design and technology. We at Connected IT Consulting emphasize that our clients have more control over the demonstrations.
Should I or should I not conduct an RFP?
How much control you want over the process and how much responsibility you are willing to accept will assist you in making a decision. This will aid you in your decision-making process. However, in our perspective, an RFP does not make sense for small and medium businesses until and unless your business processes are bulky and complex.
The core message here is that you can combine the two ways to get some of the rigor of an RFP process without the extra time and money. Your interactions will be considerably more effective if you describe and record your needs before engaging ERP Project Management partners.
The same can be true for how you approach demos – coming in with a list of conditions, and a grading technique will give a framework for your team to evaluate the fit of the solution and the partner.