Five tips on purchasing ERP software

By Phumeza Tontsi for Sage Pastel Accounting
Johannesburg, 17 Sep 2014

There are many ways to evaluate ERP software because every organisation has different needs. But there are some basic principles you can apply to help you avoid a bad deal.

Here are five tips that could save you a lot of heartache and money:

1. Always get a reference

Seems like an obvious move, but the secret is to get the right references. For example, when you're looking for accounting software, ask the people who really know about it; accountants. Also ask the prospective vendor for references. If their software does what they say it does, they'll be happy to supply you with a range of references.

Of course, it's not only external references that are important. Remember to consult key users within your organisation. They know what works and what doesn't, so their input is vital.

2. Analyse your total cost of ownership over a five-year period

Be careful of vendors who bill extra for support services and large, expensive teams of skilled experts to deploy your ERP system. Choose the vendor who gives you the lowest total cost of ownership over five years through streamlined deployment methods, minimum configuration time and annual fees that include support.

3. Ensure you have access to a good skills set to implement and maintain your software

Make sure you choose a system that is widely used in South Africa. This will ensure that, if you don't already have sufficient skilled people, you'll be able to recruit them from the large pool that exists outside your organisation due to the popularity of the product.

4. Allow for proper training

Of course, even skilled users need refresher training to keep them up to speed with the latest software, while new users require in-depth training. So select a vendor who offers full training and support as part of the package and who has a good reputation for providing comprehensive, expert training.

5. Ensure all important data are migrated

Choose a vendor with the experience and know-how to conduct a thorough data migration during your implementation phase. Failure to do so ensures you start out on the wrong foot! As Mohammed Mosam, Divisional Director of Sage Pastel Evolution, says: "Make sure your new ERP system does what it's meant to do, ie, give you an integrated and holistic view of your business by bringing every aspect of your operating environment together. This gives you the ability to control your financial situation and your relationships with your customers, suppliers and employers.

"Also, choose a system that can expand to meet your future growth through additional modules that integrate seamlessly with your core system."

Sage Pastel Accounting

Sage Pastel Accounting is a leading developer of accounting, payroll and business management software for the small, medium and large enterprise market. Since inception, Sage Pastel has developed an in-depth knowledge and understanding of the industry, establishing itself as a market leader in the sub-Saharan region. Thousands of businesses use Sage Pastel Accounting to run their businesses and trust Sage Pastel to help them achieve their business ambitions. Sage Pastel is backed by the global Sage brand.

The Sage Group

The Sage Group provides small and medium-sized organisations with a range of easy-to-use, secure and efficient business management software and services - from accounting and payroll, to enterprise resource planning, customer relationship management and payments.

The Sage Group customers receive continuous advice and support through the company's global network of local experts to help them solve their business problems, giving them the confidence to achieve their business ambitions. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999.

Sage has over 6 million customers and more than 12 700 employees in 24 countries covering the UK & Ireland, mainland Europe, North America, South Africa, Australia, Asia and Brazil. For further information, please visit www.sage.com.

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