Thursday, April 11, 2019

6 Critical Points to Consider When Choosing an ERP System

There are multiple decision points and numerous factors in the process of purchasing an ERP system. Questions like “Where to start?” or “Which criteria are more important?” can disrupt the entire system selection and implementation process.  When you start this task, we can gather six topics that will guide you as you try to determine the best ERP solution for your business.

 

1. Company goals and objectives

The primary reason for moving to a new ERP system is to support your company's goals. Every company has different goals. Is your goal to grow? Increasing efficiency in production? More effective marketing and sales processes? The question “What does this system add to me?” guides your provider.

 

2. Functional software requirements

All companies share general operations: accounting and marketing, for example. However, your industry will clarify the functional details. Your company's needs will define the features that are most important for you. Pay attention to all the functions that occur in an average working day and take advantage of the system analysis capabilities of the ERP provider at this point. Consider all processes that are currently "taken care of" outside of the system just like your current processes are in spreadsheets or whiteboards. The little things you take care of at this point will greatly reduce the technical obstacles that will come your way in the future.

 

3. Basic technology and future scalability

In the past, if an ERP system was functional, its technological infrastructure was seen as unimportant. However, technology is changing very fast. The cost of replacing an ERP system is not just the price of the new system; it also includes many items that affect company culture such as exploration, setup, training, temporal and operating model. For this reason, the technological competence of ERPs determines how they can respond to your specific requests and your change.

 

4. Budget, resources and complexity

There can be great variation in the price of ERP systems. Some companies need advanced functionality built into a system, while others may have less complex criteria and choose a more affordable ERP solution. What you should be concerned about is not which ERP costs how much, but the price of the solutions offered to you.

 

5. A team you trust

Who will implement the installation project of this system? Who will manage this project? Who will support it when needs and/or processes change? Finding or having the right human resource both internally (project managers) and externally (system provider) is an obligation for the health of the entire ERP system service.

 

6. Define the process

This is the part everyone fears. Meetings, demos, and research tend to generate more questions than answers. Do not be scared because you do not know enough about the ERP system. What you need to bring to this purchasing process are the competencies related to your own industry. In particular, a team approach that includes the ERP provider can help the process. Before you begin, defining who is on the decision-making team and creating a group that considers the needs of all prospective users is critical to a successful ERP selection process.