An Experience based Evaluation Process for ERP bids
This work offers practical guidance for organizations updating their management information systems with ERP systems, but it is incremental as it builds on existing knowledge without introducing new methods or broad innovations.
The paper addresses the complex challenge of selecting and contracting Enterprise Resource Planning (ERP) systems for organizations, based on a specific experience, and provides lessons learned and suggestions for improving the Request for Proposal (RFP) and bid selection processes.
Enterprise Resource Planning ERP systems integrate information across an entire organization that automate core activities such as finance accounting, human resources, manufacturing, production and supply chain management etc. to facilitate an integrated centralized system and rapid decision making resulting in cost reduction, greater planning, and increased control. Many organizations are updating their current management information systems with ERP systems. This is not a trivial task. They have to identify the organizations objectives and satisfy a myriad of stakeholders. They have to understand what business processes they have, how they can be improved, and what particular systems would best suit their needs. They have to understand how an ERP system is built, it involves the modification of an existing system with its own set of business rules. Deciding what to ask for and how to select the best option is a very complex operation and there is limited experience with this type of contracting in organizations. In this paper we discuss a particular experience with contracting out an ERP system, provide some lessons learned, and offer suggestions in how the RFP and bid selection processes could have been improved.