HispanicBusiness

Making the decision to upgrade from separate applications to a single integrated system controlling a company's business operation is one fraught with anxiety and questions. Will you lose data in the transition? Will it take too much time to implement the new technology? Will the interruption cause a loss of revenue? These are valid concerns. In large part, the answers to these questions depends on the skills of the IT vendor you choose and the quality of the software. Choosing the right vendor is perhaps the most critical step in the entire process.

To get some advice on the 'how-to's' of selecting an IT vendor, we caught up with Ron Vogel, vice-president of Rover Data Systems in Tustin, California. Rover, a company with nine employees and boasts a 100% customer retention rate since its founding in 1989, creates, sells and installs a product called the M3 Enterprise Resource Planning (ERP) business software. The ERP software helps control the entire business operation, from sales, shipping, purchasing and receiving, to inventory control, manufacturing, and forecasting. When upgrading, Vogel shared five tips for choosing the right vendor for your company:

1. Make sure the system can accommodate future growth. "In the past, many companies were forced into a system that had a ceiling as to how far it would grow with them," said Mr. Vogel. "On the horizon, they were always worried about when they would have to change systems again. Our philosophy is, make certain the program you buy is elastic in its capabilities. You don't want to change systems any more than you have to."

2. Calculate all costs. "Watch for hidden costs," Mr. Vogel said. "People often only compare the cost of the initial licenses. For some software companies, this is just the leader item." Rover suggests also comparing the price of implementation, training, annual support costs, conversions, hardware costs and customizations.

3. Consider ease of use. Be sure to do a demo run on the software and check that the system calls for only a limited amount of keystrokes. It should also allow you to easily reverse mistakes, and view applications.

4. Demand quick implementation. Quick implementation is important, so Mr. Vogel suggests requesting a tight schedule in advance that allows you to quickly extract data, covert it, and enter it into the new software without disrupting business.

5. Factor in maintenance and support. Big ERP vendors can charge five times as much for support and maintenance of your system as they do for your license. Ideally, support shouldn't exceed a one-to-one ratio.

It may require extra effort and scrutiny, but in the end, finding the right vendor for your ERP package can mean an improved bottom line for a company. "It sounds simple, but companies should try and find someone who knows what they are doing, and can prove it," said Mr. Fogel. "Look for a company that has a product that fits a large percentage of your needs, right out of the box."