ERP Selection Process – A 6-Step Guide for the Real Estate Industry
Table of Contents
Grow your business with best awarded real estate and construction ERP software
1. Planning Effectively
- Simultaneous management of business processes.
- Effective tracking of the data.
- Automating manual processes etc.
- The number of users who are going to use the ERP
- Understanding ERP modules and features required
- Support and Annual Maintenance Costs (AMC)
- Training the employees
- Infrastructure cost (hardware and software)
2. Researching an Industry-Specific ERP
On LinkedIn, we conducted a poll asking whether industry professionals would select an industry-specific ERP or a generic ERP. 89% of the people voted that they will go for an industry-specific ERP.
3. Shortlisting and Scheduling Demos with the Vendors
• Service Provided by the Vendor
• Technical Features of the Product
• Scalability of the Product
After shortlisting the vendors, you need to schedule demos with them. A demo provides you with an overview of the product and its functionalities. Before scheduling the demo, request your vendor to present a personalised demonstration of the product and how it can specifically address your company needs rather than a standardised sales demo. In the demo, try to involve all the decision makers of your company, especially the IT head, so that everyone is on the same page.
4. Talking to the Peers and References
Observe your peer company’s revenue, the efficiency in their process, customer complaints, etc. before and after the implementation of an ERP system. Also, enquire about the technical support and the quality training offered by their ERP vendor. Acquiring direct information from your peers from the same industry makes the ERP selection process easier.
5. Deciding the Right ERP Solution (Cloud or On-Premise ERP)
Let’s first understand the basic difference between cloud and on-premise ERP. Then we shall discuss the pros and cons of both models and let you make the right decision.
Cloud ERP runs on the vendor’s data center while on-premise ERP runs on the purchasing company’s server. Cloud ERP usually works better for small companies with 10-15 users for 3 years or less and it can be purchased in annual or monthly subscription. On the other hand, on-premise ERP is suitable for enterprises with several users.
Cloud ERP v/s On-Premise ERP
• Cloud ERP
• On-Premise ERP
The image below shows the total costs of ownership (TCO) over 10 years for both cloud-based and on-premise software. As observed from the graph, TCO of both models converges over time.
6. Finalising, Negotiating and Implementing the ERP
Ultimately, the decision lies in your hand to select the right ERP model by understanding the value it brings to the organisation. However, you must ensure to not compromise on the quality of the product, training, and support provided by the vendor to cut down the expenditure. An investment in ERP ensures high ROI and also helps you to save money in the later stage.
If you are a real estate developer or a construction business owner looking for an ERP solution then get in touch with our team for a demo.
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