Activity 6

1. What are the steps in purchasing an ERP?

The steps in purchasing an ERP include vendor research, high-level vendor
demonstrations and evaluation, needs and requirements assessment, development of a
request for bid or proposal, release request for bid to vendors, analysis and selection,
vendor negotiation (contract review, pricing), and finally, the purchase of the system.

2. Who generally needs to be involved in the ERP selection process and why?
The ERP selection process generally involves the participation of various
stakeholders, including department managers, subject matter experts, end-users, IT
staff, and contract staff. Involving a wide range of individuals helps gather diverse
perspectives and ensures that the chosen ERP system aligns with the company's
needs.

3. What is total cost of ownership (TCO) and why should it be a part of the ERP
selection process?
Total cost of ownership (TCO) refers to the comprehensive cost of owning and
operating an ERP system over its entire lifecycle. It should be a part of the ERP
selection process to assess the long-term financial implications of implementing a
particular system, including initial purchase costs, maintenance, support, training, and
any other related expenses.

4. What are the key components in the contract negotiation and licensing?
Key components in contract negotiation and licensing include defining the
products and services included in the purchase, specifying maintenance terms,
determining professional services for implementation, addressing contract life cycle
management, and clearly identifying deliverables and acceptance criteria. Additionally,
both parties should establish responsibilities for contract management and authority for
authorizing changes.

5. Why is it important in the request for bid process to make the vendors reply in a
specified format?
In the request for bid process, making vendors reply in a specified format is
essential for ensuring consistency, comparability, and clarity in the responses from
different vendors. This allows for a more effective evaluation and comparison of bids.
6. Why is communication important in this phase?
Communication is important in this phase because it helps keep all involved
parties informed of progress, maintains momentum, and ensures that everyone is
aligned with the project's goals and expectations.

7. What is the difference between RFI and RFB?

The main difference between RFI (Request for Information) and RFB (Request
for Bid or Request for Proposal) is their purpose. An RFI is used to gather general
information about potential vendors and their capabilities, while an RFB is a formal
request for detailed proposals or bids from vendors, specifying the company's
requirements.

8. What are the benefits of a bidding process to purchase an ERP?

The benefits of a bidding process for purchasing an ERP include the potential for
cost savings, a structured approach to evaluating vendor proposals, the ability to gather
comprehensive information about vendors, and the opportunity to assess how well
vendors' offerings align with the company's requirements.