Comprehensive ERP Evaluation Criteria


Functionality and Technical Architecture Assessment Framework


Core Functional Capabilities

Financial Management

  • General Ledger

    • Chart of accounts flexibility and hierarchical structures

    • Multi-dimensional accounting (departments, cost centers, projects)

    • Journal entry processing and approvals

    • Period close processes and controls

    • Financial statement generation and customization

    • Inter-company transactions and eliminations

  • Accounts Payable

    • Vendor master data management

    • Invoice processing and validation

    • Payment processing and approval workflows

    • Check, ACH, and wire payment support

    • 1099 reporting and compliance

    • Vendor portal capabilities

  • Accounts Receivable

    • Customer master data management

    • Invoice generation and distribution

    • Credit management and collections

    • Cash application and reconciliation

    • Customer statements and aging reports

    • Customer portal capabilities

  • Fixed Assets

    • Asset acquisition and disposal

    • Depreciation calculation methods

    • Asset transfers and reclassifications

    • Asset maintenance and tracking

    • Tax and book depreciation support

    • Asset reporting and compliance

  • Cash Management

    • Bank reconciliation capabilities

    • Cash flow forecasting

    • Treasury management

    • Bank connectivity and integration

    • Cash position reporting

    • Payment factory capabilities

  • Financial Reporting

    • Standard and custom report generation

    • Financial statement templates

    • Drill-down and drill-through capabilities

    • Real-time vs. batch reporting options

    • Regulatory compliance reporting

    • Financial dashboards and KPIs

  • Multi-Entity Management

    • Multi-company consolidation

    • Inter-company transactions and eliminations

    • Entity-specific configurations

    • Consolidated financial reporting

    • Multi-currency support

    • Global tax compliance

Supply Chain Management

  • Procurement

    • Purchase requisition management

    • Purchase order processing and approvals

    • Receiving and inspection

    • Vendor evaluation and scorecards

    • Contract management

    • Catalog management and punch-out capabilities

  • Inventory Management

    • Item master data management

    • Multi-warehouse and location support

    • Lot/serial tracking and traceability

    • Inventory valuation methods (FIFO, LIFO, weighted average)

    • ABC analysis and inventory optimization

    • Cycle counting and physical inventory

    • Barcode and RFID support

  • Warehouse Management

    • Putaway and picking strategies

    • Zone and bin management

    • Wave and batch picking

    • Cross-docking capabilities

    • Labor management and productivity tracking

    • Mobile device support for warehouse operations

  • Order Management

    • Sales order entry and processing

    • Credit checking and order holds

    • Pricing and promotions management

    • Order promising and ATP calculations

    • Order change management

    • Backorder management

    • Order tracking and status updates

  • Shipping and Logistics

    • Shipment planning and execution

    • Carrier selection and rating

    • Shipping documentation generation

    • Freight calculation and management

    • International shipping and compliance

    • Package tracking and notifications

  • Demand Planning

    • Forecast generation and management

    • Statistical forecasting methods

    • Collaborative forecasting capabilities

    • Forecast accuracy measurement

    • Demand sensing and shaping

    • Scenario planning and simulation

  • Supply Planning

    • Material requirements planning (MRP)

    • Master production scheduling

    • Capacity planning and constraints

    • Multi-echelon inventory optimization

    • Supplier collaboration and planning

    • Inventory target setting and management

Manufacturing

  • Production Planning

    • Bill of materials (BOM) management

    • Routing and operation sequencing

    • Work center and resource management

    • Production scheduling and sequencing

    • Finite and infinite capacity planning

    • Production plan visualization

  • Shop Floor Control

    • Work order management

    • Labor tracking and reporting

    • Machine utilization monitoring

    • Production reporting and status tracking

    • Material issue and consumption

    • Scrap and rework handling

  • Quality Management

    • Quality control plans and inspection procedures

    • Non-conformance management

    • Corrective and preventive actions (CAPA)

    • Statistical process control (SPC)

    • Quality metrics and reporting

    • Supplier quality management

  • Manufacturing Execution System (MES)

    • Real-time production monitoring

    • Machine connectivity and IoT integration

    • Electronic work instructions

    • Production analytics and visualization

    • Downtime tracking and analysis

    • OEE (Overall Equipment Effectiveness) reporting

  • Product Lifecycle Management

    • New product development workflow

    • Engineering change management

    • Document management and control

    • Product data management

    • Revision control and history

    • Product costing and simulation

  • Manufacturing Types Support

    • Discrete manufacturing

    • Process manufacturing

    • Mixed-mode manufacturing

    • Engineer-to-order

    • Make-to-order

    • Make-to-stock

    • Assemble-to-order

Human Capital Management

  • Core HR

    • Employee record management

    • Organizational structure and positions

    • Job management and classification

    • Benefits administration

    • Time-off management

    • Compliance and reporting

  • Talent Management

    • Recruitment and applicant tracking

    • Onboarding and offboarding

    • Performance management

    • Succession planning

    • Learning management

    • Career development

  • Workforce Management

    • Time and attendance tracking

    • Scheduling and rostering

    • Labor planning and forecasting

    • Absence management

    • Labor compliance management

    • Mobile time capture

  • Payroll

    • Payroll processing and calculation

    • Tax filing and compliance

    • Garnishment management

    • Multi-jurisdiction support

    • Payroll reporting and analytics

    • Employee self-service for pay information

  • Employee Experience

    • Employee self-service portal

    • Mobile employee capabilities

    • Social collaboration tools

    • Feedback and engagement tools

    • Recognition programs

    • Internal communications

Customer Relationship Management

  • Sales Management

    • Lead and opportunity management

    • Quote and proposal generation

    • Pipeline management and forecasting

    • Territory management

    • Commissions and incentive management

    • Sales performance analytics

  • Marketing Automation

    • Campaign management

    • Marketing analytics and attribution

    • Email marketing capabilities

    • Landing page and form creation

    • Marketing calendar management

    • Marketing resource management

  • Service Management

    • Case management

    • Service level agreement (SLA) tracking

    • Knowledge base management

    • Service scheduling and dispatch

    • Customer communication channels

    • Service analytics and reporting

  • Customer Experience

    • Customer journey mapping

    • Customer feedback management

    • Personalization capabilities

    • Customer insights and analytics

    • Loyalty program management

    • Voice of customer integration

Project Management

  • Project Setup and Planning

    • Project creation and templates

    • Work breakdown structure (WBS)

    • Task management and dependencies

    • Resource allocation and leveling

    • Project scheduling and Gantt charts

    • Milestone tracking

  • Project Accounting

    • Project budgeting and cost planning

    • Time and expense capture

    • Project billing and invoicing

    • Revenue recognition methods

    • Project cost accounting

    • Profitability analysis

  • Project Execution

    • Task assignment and tracking

    • Collaborative workspaces

    • Document management

    • Issue and risk management

    • Change order processing

    • Project communication tools

  • Project Analytics

    • Project status dashboards

    • Earned value management

    • Project KPIs and metrics

    • Resource utilization reporting

    • Portfolio analysis and visualization

    • Project variance analysis

Industry-Specific Capabilities

  • Retail

    • Point of sale (POS) integration

    • Omnichannel capabilities

    • Merchandising management

    • Promotional pricing and discounts

    • Gift card and loyalty management

    • Store operations management

  • Professional Services

    • Resource management and utilization

    • Skills tracking and matching

    • Time and billing

    • Project profitability

    • Client relationship management

    • Services delivery management

  • Healthcare

    • Patient management

    • Clinical workflow support

    • Medical billing and coding

    • Regulatory compliance (HIPAA, etc.)

    • Supply chain for healthcare

    • Research and clinical trial management

  • Public Sector

    • Grant management

    • Fund accounting

    • Constituent management

    • Regulatory compliance

    • Public procurement processes

    • Public reporting requirements

  • Financial Services

    • Client onboarding and KYC

    • Portfolio management

    • Risk assessment and compliance

    • Transaction monitoring

    • Financial instrument management

    • Regulatory reporting

Technical Architecture

Platform Architecture

  • Deployment Models

    • Public cloud options

    • Private cloud options

    • Hybrid deployment capabilities

    • On-premises deployment support

    • Multi-cloud strategy

    • Edge computing capabilities

  • Multi-Tenant Architecture

    • True multi-tenancy vs. isolated instances

    • Tenant data isolation and security

    • Tenant customization capabilities

    • Tenant upgrade process

    • Tenant migration options

    • Resource sharing efficiencies

  • Application Architecture

    • Monolithic vs. microservices approach

    • Service-oriented architecture (SOA)

    • Containerization strategy

    • API-first design principles

    • Serverless computing components

    • Event-driven architecture

  • Database Architecture

    • Database technology and version

    • Relational vs. NoSQL approaches

    • Data partitioning and sharding strategy

    • In-memory database capabilities

    • Database scaling mechanisms

    • Data archiving and purging strategies

  • Infrastructure

    • Underlying hardware requirements

    • Virtualization approach

    • Network requirements and topology

    • Load balancing strategy

    • Content delivery capabilities

    • Disaster recovery infrastructure

Integration Capabilities

  • API Management

    • API standards and protocols (REST, SOAP, GraphQL)

    • API documentation and developer portal

    • API rate limiting and throttling

    • API versioning strategy

    • API security and authentication

    • API monitoring and analytics

  • Integration Framework

    • Integration patterns and methodologies

    • Pre-built connectors and adapters

    • Integration platform capabilities

    • Batch vs. real-time integration options

    • ETL and data synchronization tools

    • Integration monitoring and error handling

  • Interoperability

    • Industry standard support (HL7, FHIR, EDI, etc.)

    • File format support (XML, JSON, CSV, etc.)

    • Cross-platform compatibility

    • Legacy system integration capabilities

    • Third-party marketplace integrations

    • IoT and device integration

  • Workflow and Orchestration

    • Business process modeling capabilities

    • Workflow design and management

    • Business rules engine

    • Workflow monitoring and analytics

    • Human-in-the-loop processes

    • Process optimization and simulation

Scalability and Performance

  • Scalability

    • Horizontal scaling capabilities

    • Vertical scaling options

    • Auto-scaling mechanisms

    • Scalability limits and thresholds

    • Growth capacity without degradation

    • Multi-region deployment capabilities

  • Performance Management

    • Performance benchmarks and standards

    • Response time guarantees

    • Transaction processing capacity

    • Caching strategies

    • Query optimization capabilities

    • Background processing management

  • Data Volume Handling

    • Large dataset management

    • High-volume transaction processing

    • Batch processing capabilities

    • Data archiving and retention strategies

    • Historical data access performance

    • Big data integration capabilities

  • Concurrency Support

    • Simultaneous user capacity

    • Locking mechanisms

    • Concurrency control approach

    • Peak load handling

    • Resource contention management

    • Session management

Security and Compliance

  • Authentication and Authorization

    • Identity management capabilities

    • Multi-factor authentication support

    • Single sign-on (SSO) capabilities

    • Role-based access control (RBAC)

    • Attribute-based access control (ABAC)

    • Fine-grained permissions management

  • Data Security

    • Data encryption at rest

    • Data encryption in transit

    • Data masking and anonymization

    • Sensitive data discovery and classification

    • Data loss prevention capabilities

    • Privacy by design principles

  • Audit and Compliance

    • Comprehensive audit logging

    • Audit trail and history

    • Regulatory compliance certifications

    • Segregation of duties controls

    • Compliance reporting capabilities

    • Data sovereignty support

  • Threat Protection

    • Vulnerability management process

    • Intrusion detection and prevention

    • DDoS protection mechanisms

    • Penetration testing frequency

    • Security patch management

    • Malware and ransomware protection

  • Security Operations

    • Security incident response process

    • Security monitoring and alerting

    • Security analytics and reporting

    • Third-party security assessments

    • Security program governance

    • Supply chain security measures

Extensibility and Customization

  • Configuration Capabilities

    • System parameter settings

    • Business rule configuration

    • Workflow configuration

    • Form and field configurability

    • Report configuration options

    • User interface personalization

  • Customization Tools

    • Low-code/no-code development platform

    • Custom field creation

    • Form and screen customization

    • Custom report development

    • Business logic customization

    • User interface theming and branding

  • Development Framework

    • Programming languages supported

    • Development tools and IDEs

    • Source control integration

    • DevOps pipeline support

    • Testing frameworks and automation

    • Release management tools

  • Add-on Marketplace

    • Partner ecosystem breadth

    • Pre-built application availability

    • Industry-specific solutions

    • Add-on certification process

    • Marketplace governance

    • Integration between add-ons

  • Extensibility Governance

    • Customization impact on upgrades

    • Best practices and guidelines

    • Code review processes

    • Change management procedures

    • Extension lifecycle management

    • Backward compatibility policy

Availability and Reliability

  • System Uptime

    • Service level agreements (SLAs)

    • Planned maintenance windows

    • Unplanned outage history

    • Real-time status monitoring

    • Uptime reporting and transparency

    • Compensation for SLA violations

  • Disaster Recovery

    • Recovery point objective (RPO)

    • Recovery time objective (RTO)

    • Backup frequency and methods

    • Disaster recovery testing frequency

    • Geographic redundancy

    • Business continuity planning

  • Fault Tolerance

    • Single points of failure mitigation

    • Redundancy implementation

    • Failover mechanisms

    • Error detection and correction

    • Graceful degradation capabilities

    • Self-healing infrastructure

  • Monitoring and Alerting

    • System health monitoring

    • Performance monitoring

    • Capacity monitoring

    • Anomaly detection

    • Predictive maintenance

    • Alert management and escalation

Data Management

  • Data Governance

    • Master data management

    • Data quality management

    • Data stewardship tools

    • Data lineage tracking

    • Data catalog capabilities

    • Metadata management

  • Data Migration

    • Data import/export tools

    • ETL capabilities

    • Data transformation tools

    • Data validation processes

    • Migration project methodology

    • Legacy data conversion support

  • Business Intelligence

    • Reporting tools and capabilities

    • Dashboard creation and customization

    • Ad-hoc query capabilities

    • Data visualization options

    • KPI tracking and management

    • Mobile BI capabilities

  • Analytics

    • Predictive analytics capabilities

    • Prescriptive analytics features

    • Embedded analytics

    • Real-time analytics processing

    • Statistical analysis tools

    • Data mining capabilities

  • AI and Machine Learning

    • ML model integration

    • AI-powered recommendations

    • Intelligent automation

    • Natural language processing

    • Computer vision capabilities

    • Machine learning operations (MLOps)

User Experience

  • User Interface

    • Design consistency and standards

    • Responsive design for different devices

    • Accessibility compliance (WCAG, Section 508)

    • User interface customization options

    • Modern UX patterns and conventions

    • Design system implementation

  • Mobile Experience

    • Native mobile applications

    • Mobile web experience

    • Offline capabilities

    • Touch optimization

    • Mobile device feature utilization

    • Mobile security features

  • Personalization

    • User preference settings

    • Role-based experience customization

    • Personalized dashboards and views

    • Favorite and recent items

    • Adaptive user interfaces

    • User experience analytics

  • Usability

    • Learnability and intuitiveness

    • Efficiency and productivity

    • Error prevention and handling

    • Contextual help and guidance

    • Search functionality

    • Navigation design and efficiency

Vendor Cloud Operations

  • Infrastructure Management

    • Cloud provider relationships

    • Infrastructure monitoring and maintenance

    • Capacity planning and management

    • Infrastructure automation

    • Environment provisioning

    • Resource optimization practices

  • Release Management

    • Release frequency and cadence

    • Update deployment process

    • Version control and management

    • Release notes and documentation

    • Feature preview capabilities

    • Rollback procedures

  • Service Management

    • Incident management process

    • Problem management practices

    • Change management procedures

    • Configuration management approach

    • Service request fulfillment

    • Knowledge management

  • Support Services

    • Support tiers and coverage

    • Response time commitments

    • Escalation procedures

    • Remote support capabilities

    • Self-service support tools

    • Support staff expertise

Implementation and Operational Considerations

Implementation Methodology

  • Project Approach

    • Waterfall vs. agile implementation

    • Implementation accelerators

    • Industry-specific methodologies

    • Project governance framework

    • Risk management processes

    • Quality assurance procedures

  • Resources and Expertise

    • Vendor implementation resources

    • Partner implementation capabilities

    • Certification programs

    • Knowledge transfer approach

    • Staff augmentation options

    • Technical expertise availability

  • Time to Value

    • Implementation timeline expectations

    • Phased deployment approach

    • Quick-start programs

    • Pilot implementation options

    • Critical path management

    • Value realization tracking

Training and Adoption

  • Training Resources

    • Training materials and documentation

    • Learning management system

    • Role-based training paths

    • Hands-on labs and scenarios

    • Certification programs

    • Ongoing education options

  • User Adoption

    • Change management methodology

    • User engagement strategies

    • Adoption metrics and analytics

    • Super-user program support

    • Feedback collection mechanisms

    • Continuous improvement process

Ongoing Operations

  • System Administration

    • Administration tools and consoles

    • Batch job scheduling and monitoring

    • User management capabilities

    • Environment management

    • System health monitoring

    • Maintenance tasks automation

  • Vendor Relationship

    • Account management structure

    • Executive sponsorship

    • Customer success programs

    • User community and forums

    • Product roadmap influence

    • Customer advisory boards

  • Total Cost of Ownership

    • Licensing model and costs

    • Implementation costs

    • Ongoing support costs

    • Upgrade costs

    • Infrastructure costs

    • Internal staffing requirements

Vendor Assessment

Company Viability

  • Financial Stability

    • Revenue and growth trends

    • Profitability measures

    • Investment in R&D

    • Funding and ownership

    • Market share and position

    • Industry analyst ratings

  • Strategic Direction

    • Product roadmap clarity

    • Industry focus and expertise

    • Innovation track record

    • Partnership strategy

    • Acquisition history and integration

    • Market expansion plans

  • Reputation and References

    • Customer satisfaction metrics

    • Industry recognition and awards

    • Reference customer availability

    • Case studies and success stories

    • Third-party reviews and ratings

    • Customer retention rates

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AIaaS Vendor Evaluation Framework, The Fourester Matrix