Choosing the best ERP system: Why it's important to find the “best fit” for your business

If your company is searching for a new or replacement ERP system, it's safe to assume that you've either outgrown your legacy software, or that your current ERP system can no longer keep pace with your growing business, and your growing business needs. 

Most business owners and managers spend several months (or longer) before deciding on which ERP vendor to go with, and if what they're being pitched, is in fact, the “be all and end all” – no less than the perfect ERP for their organization. It can be a long, arduous, and even confusing process, and then some. 

Selecting not only the right ERP vendor, and the right ERP, depends a lot on your organization's operational business needs.

While there is an endless list of critical factors you need to consider, we've shortened the list down to the top 6, to help make the decision process a little easier – to not only choose the right ERP vendor, but ultimately, the best ERP for your business.

What's inside?

First, you want to be sure that your ERP has the modules, features and functionality that will optimize your operational business processes. In other words, your ERP should work for you. You do not want to change or adapt your business practices to suit your ERP. Comparing different ERP's features is perhaps the best way to better understand the ROI, and what you can hope to achieve from each system you're considering.

Can it integrate?

You will want your ERP to be able to integrate with other third-party software products and applications. This means that you want to look for an “open” ERP system. A high level of system openness enables you to send and receive business data to other software systems in your organization. Today's advanced systems offer exceedingly high levels of interoperability between core business processes, with the ability to incorporate external data, for example, from AI and IoT-powered devices, opening up a whole new world of innovation for your business.

Flexibility and scalability

You'll want to look for a flexible ERP to enable your business to adapt, change, and grow over time, and that you can easily add features and functionality as your business grows. You'll also want a system that is scalable, so that you can penetrate into new markets, and expand your business, such as increased volumes, workloads, and amounts of data. As you grow, your ERP will also need to scale, to continue providing support.

On-premise, cloud or hybrid

On-premise ERP is installed in-house, while cloud ERP is delivered as a Software-as-a-Service solution. Hybrid ERP combines both, with certain features and functionality delivered via the cloud, while others are stored locally. Choosing the right model depends on how sensitive your business data is, and what your business and technological objectives are. Most businesses today, however, choose cloud ERP, as it's easier to implement, more affordable, including various subscription models, and doesn't require installing costly system hardware on site.

Cost

ERP is a considerably large investment. The total cost of the system is high, plus the cost of implementation and additional required resources required. But it's not only about cost – it's also about long-term value. Investing in an ERP system will, over time, yield results, by first and foremost, enabling your employees to do their jobs better, faster, and more efficiently. In turn, you will save time, valuable resources, and costs, where the right ERP can mean the difference between failure and success.

Training

When considering a new or replacement ERP, you'll want to ensure that your vendor provides comprehensive user training, even if it's at an additional cost. With many ERP systems, there's a steep learning curve. You want your employees to optimize the reams of system features and functionality. This means not only understanding how the system works, but how it can best work for them.

The best ERP, and the best ERP for your business, is ultimately a system that will address your unique business needs.

To choose ERP software, identify specific business requirements and establish a realistic budget. Evaluate vendors based on industry-specific functionality, scalability, and deployment options like cloud or on-premise. Prioritize user experience and integration capabilities to ensure long-term operational efficiency and a high return on investment.

With the right ERP in place, you will work smarter, work better – and work towards growing your business and your bottom line.