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.