Committing to a new ERP system for your organization can be one of the most strategic decisions you will ever make, because your ERP system affects your company’s efficiency, productivity and ability to grow revenue for years to come. While many ERP systems have similar functionality and capabilities, there are subtle and not-so-subtle differences that can make one solution more appropriate for your company over another. So how can you figure out which ERP system is best for your company? The application’s ability to integrate with your existing systems and the vendor’s willingness to make and support customizations are two of the obvious key questions to ask,  but there are 10 other not so obvious questions you need the answers to before you make your ERP vendor selection.

1. Is your pricing license based?

Traditionally, ERP has been purchased using "perpetual license" pricing.  Under this model, the software is considered a capital investment and companies typically pay a one-time license fee to own the software forever.  Subscribtion-based pricing is becoming more prevalent, as is value-based pricing and other pricing schemes. There isn't one model that works best, but it's important to consider your budget, needs and IT infastructure when deciding how you want to purchase your ERP system.

2. If I only need a few modules, can I only pay for what I need?

Many ERP vendors require you to buy the entire system, even if you only need some of the functionality. You end up having to implement the entire system to make it work, even if you choose to continue using existing financial applications, for example. Worse yet, you pay maintenance on all the modules for the life of the system, even if you aren’t using them.

3. What are your service offerings, even beyond our immediate needs?

Many ERP vendors practice the “Love ‘em and leave ‘em” service method. You may never see anyone from the services team after your first go live day. The best ERP vendors have offerings to help you refine and improve your use of the system so you continue to enjoy value from your investment over its entire life.

4. What does your maintenance service include?

Many ERP vendors quote similar prices for maintenance, usually quoted as a percentage of the price. However, not all maintenance is the same. Some vendors charge extra for new releases while others charge time and materials for troubleshooting. Knowing what services are included is important to compare various plans and ensure that there are no surprises in the future.

5. How do you consistently deliver ongoing innovation and value?

You will want to ensure that the vendor has both the resources and the inclination to stay current with changing regulations, newly emerging best practices and business processes and current technology. Otherwise, you could be stuck with an application that won’t keep up with your business.

6. What does your customer service include?

Sometimes, there really is no customer service. Make sure that you are comfortable with the hours, locations and languages for customer services and support centers.

7. What makes you better than your competition?

The vendors should have a ready answer for this one. Just be certain that the things they pride themselves on are things that matter to you and your business, or you could find your company’s interests and this vendor’s priorities diverge over time.

8. What types of companies are in your customer base?

Make sure that the ERP vendor has experience in your industry and with companies your size. You don’t want to be stuck training the vendor’s team on the nuances of your business, or constantly struggling with business processes designed for much larger organizations with huge staffs.

9. What are you not good at?

Make sure that the vendor answers this question. If they mention something that’s critical to your operation, you’ll know this is not the right choice. If they say they are good at everything, you’ll know that they have no focus. No ERP company can be good in every industry or for every size company. Make sure you won’t become an anomaly in this vendor’s installed base.

10. What is the typical implementation time frame for a company of our size?

The faster you implement the faster you earn ROI. Faster implementations are less risky and less expensive, and since vendors know this, they sometimes offer lower implementation time frames than they can deliver. Make sure they have a reference who can vouch for both their methodology and their time frame.

With these 10 questions, you are now equipped to undertake an informed search for the best ERP system for your business.