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Chapter 6 • Software and Vendor Selection 171

ERP System Research Table
Item Description
User Base How many companies are using the system and for what purposes.
Identify competitors using the system.
Financial Position If publicly traded, this information is fairly straightforward. If not, the ERP
vendor information may not be available until such time later in the
purchase process. It should include sales revenues, profits, growth,
research and development, and any outstanding debt.
Implementation Issues This can be accomplished through calls to companies using the software
and Support or IT researching companies that survey and collect this type of
information on a regular basis. Be sure information is current. What may
have happened three or four years ago may not be accurate.
HW/SW Infrastructure Fit ERP vendors usually support more than one platform. Identifying and
and Scalability documenting the platforms will provide a better understanding of the
scalability of the system and ultimate fit with the company’s direction.
Vendor Direction This information should be tracked through the vendor history of change
and upgrades to the system along with a statement of direction from each
vendor. The ability to implement a stated direction is important; hence,
knowing the history is critical to understanding the hype versus the reality.
Currency of Technology Like legacy systems, a vendor’s software is often written in older
technology. In some sense every vendor goes through this
because technology is changing rapidly, but the ability to migrate to
new technology must be understood and documented during the
research process.
Release Strategy How often are there releases to the system, and what is included in the
releases? Are fixes timely and minor upgrades included periodically? What
is the timing for major releases, and are there defined upgrade paths? Are
there vendor costs related to upgrades?
Development and This is an area that sometimes requires some exploration. It is difficult to
Maintenance Staff compare apples to apples because the “size” of the ERP vendor system
will have an effect on the development and maintenance staff. One
should really look for a disproportionate number within an ERP vendor
and across ERP vendors.
System Update Process This is a key area. It helps to understand how much your company’s
direction and long-term needs will be met by the vendor. A company’s
involvement in further defining the functional direction of an ERP system
is important to understand and document in the vendor research process.

BOX 6-2 Short List of ERP Vendors

SAP—Founded in 1972, SAP is the recognized leader among ERP vendors, currently claiming the largest
market share. Its solutions are for all types of industries and for every major market. Headquartered in
Walldorf, Germany, with 12 million users, 88,700 installations, and more than 1,500 partners, SAP employs
more than 32,000 people in more than 50 countries. Its products include mySAP Business Suite, SAP
NetWeaver, and solutions for small and midsize companies (e.g., SAP Business One and SAP All-in-One)
(www.sap.com).
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