Over the past 24 years of conducting Enterprise Resource Planning (ERP) evaluation and selection projects, RJMC has frequently been asked for the “templates” and other process documents that we use to support our successful ERP projects.

Well, you no longer have to wait to learn how to manage your ERP Evaluation, Selection, and Implementation project.  We are now offering a “Live” on-site One-Day ERP Workshop that will teach your team to perform the steps necessary to ensure success when embarking upon this mission critical project.

During the RJMC One-Day ERP Workshop, we will teach you how to . . .

• Identify the unique strengths and shortcoming in your current systems
• Identify system requirements that are key to the on-going success of your business
• Differentiate between “Desires” and “Needs” and why this is an important distinction when selecting a new system
• Define the appropriate scope for your future ERP system
• Narrow the field of solutions alternatives to those that align best with your company needs and budget
• Manage vendor fact-finding sessions
• Prepare a document that you can share with solution providers to obtain a meaningful proposal
• Conduct a software solution demonstration that contributes to your decision-making process
• Review a software license and consulting services agreement properly
• Build a effective implementation project team
• Plan for your ERP implementation by setting realistic scope, timing, and budgetary expectations

This on-site Workshop will provide your whole team with an opportunity to ask questions during the Workshop and RJMC resources will also be available for the following 30 days to respond to any general questions regarding the Evaluation and Selection process discussed during the Workshop!

RJMC represents the best interests of our mid-market clients and assists them in finding the right ERP solution at the right price.  Your ERP project will ultimately change your key business processes to improve your operations, reduce your costs, and support your on-going success.  Let RJMC show you some of our magic so that your company can plan for this significant activity.

Contact us at 310-445-5300 to schedule a time for your Workshop!

Rubenstein / Justman Management Consultants (RJMC) is a management consulting firm that supports business process change and prides it on the strong relationships it has established with its many clients over the past 24 years.  RJMC is vendor and solution independent and does not sell hardware or software or perform system implementations.  Visit www.RJMC.net to better understand the scope of RJMC services.

Answer: This question comes from Rich in Los Angeles. Thanks, Rich, for your question.

First, some definitions. A hosted Enterprise Resource Planning (ERP) system means that the system’s software physically resides on servers that are outside of your company’s physical infrastructure. Hosting also typically means that an outside party is managing and maintaining the database and code on which the ERP system runs. The more traditional method for setting up and managing an ERP system has always been to manage the system with company employees maintaining servers that reside within the company’s headquarters or other locations.

Hosting an ERP system provides some line-item cost savings by requiring little or no “on premise” hardware and by reducing the staff necessary to maintain both the hardware and the software. The hosting service, though, adds a new cost to the IT budget – and this cost can be substantial. In addition, this cost never goes away.

The persistence of the monthly hosting charge means that in the course of the first three years or so, a company that is hosting its ERP system has spent more for hosting than it would have laid out for a hardware purchase. This all by itself does not indicate whether hosting was a good or bad decision, however. The company has, after all, been saving on its staffing costs all of that time.

In addition to cost savings – or additional costs incurred – with hosting, there is the concern of whether managing an ERP system is the type of skill that this company wants to build and nurture while spending money recruiting, hiring, training the staff necessary to manage the system. If the company is a manufacturer, couldn’t these IT dollars be more wisely spent on IT staff who specialize in productivity-enhancing software tools for the shop floor or managing product design and lifecycle systems for the company’s critical engineering function? In other words, if large-system IT management is not a core competency, then why not let an outside expert do the job?

RJMC finds that companies with a lean IT staff often find hosting to be a solid option. This allows the company to maintain its focus on its core functions and its competitors, without worrying about whether the back-end system is up and running.

Companies with a large existing IT infrastructure are less likely to find the higher long-term costs of hosting to be an acceptable trade-off. These companies have the resources to recruit and train adequate resources to support an on-premise system and will not want to give up the agility that this sort of in-house skill can provide.