Businesses are continuing to adapt to the digital revolution occurring in our world. It is vital that these businesses choose the best tools to help this adaptation go as smoothly as possible. With so many options available in ERP software (which is the most essential detail for digital transformation), it makes it all the more difficult to make the right decisions. The confusion that results from a complex selection process can often lead to unsuccessful projects and purchases. Considering the investment required to implement an ERP system, the selection process should be conducted efficiently and also in a way that guarantees a successful outcome.
The ERP Selection Process
Selecting a new ERP system is no easy or small task. It is time-consuming and involves collaboration both in and outside of your organization. If your business is considering implementing an ERP system, be sure to consider the following tips.
#1. Choose a System That Is Compatible With Your Existing Software
Chances are, your business is already utilizing other software and applications other than an ERP system. If you are happy with these applications and would rather not waste the investment you put into them, you should choose an ERP software that can integrate with them. For example, if you are currently using a CRM system and would prefer not to change it, you can quickly check if the ERP system you are looking to purchase is compatible.
#2. Your ERP System Should Be Able to Adapt to New Technologies As They Emerge
It seems like every day there is some new technology that is created to make our lives easier. We live in such a fast-paced world, so any slowdowns are often annoying. Your ERP system must be able to quickly and easily adapt to these new technologies as they are developed and rolled out.
When businesses invest in an ERP system, they are doing so to enhance productivity, save time and money, and boost their overall business performance. A system that cannot adapt to changes will do the total opposite of these goals. To avoid this scenario, you must first acknowledge that your ERP is a vital structure. The system needs to grow with your business. Before making your decision, you should give priority to flexible and developable ERP software. Also, a system that can be improved with the times will provide you with many more advantages.
#3. Plan an Effective and Realistic Budget
Since ERP software is a significant investment for any business, you should be as realistic, tedious, and careful as possible regarding your budget plan. It is much better to expect the worst as far as spending goes and be surprised. You may think that the most expensive one is the best, but this is rarely the case. Analyze every aspect of your decision carefully. Don’t just choose the most expensive one; select the system that offers the most for your business.
#4. Fit the Needs of Your Business
Before selecting your ERP system, outline the needs of your business. Then, when you have all of your options in front of you, you can check off which company offers what. When it comes to ERP selection, this is so valuable. Analyze all business processes correctly and reveal the areas that could benefit the most from the solution; improvements can be made. In today’s ERP market, many systems offer customization options that can be super helpful in managing your business and all of its processes.
It is essential to have internal discussions within your organization and assess what areas need the most improvement. Below are key questions you can ask to get this discussion started:
- What is outdated about your current system?
- Why are you considering investing in a new ERP?
- What works well with your current business systems?
- What manual processes could you potentially automate?
- In what areas of the business are you lacking visibility – or have a hard time with reliable business reporting?
- What other systems need to be integrated with the ERP?
#5. Choose the Right Implementation Partner
Selecting an ERP is just step one on the path to digital transformation. After this, you will go a long way with many steps and obstacles. It is essential to not be alone during these stages and to choose a partner who can support you when you need to overcome these obstacles. You can get feedback from other companies already using the ERP software you are about to select. Reviews and references matter!
Always think about what will happen after your system goes live. Does your partner offer ongoing and continuous support and training? Does your partner efficiently handle issues that arise? Whether it’s an in-office support team, external partner, or something else, planning beyond the launch of the ERP will set you up for a maximum return on your investment.
#6. Prioritize ERP Systems that Are Popular in Your Industry
Each industry has different business processes and requirements. You can do your research first on the systems your competitors use and then benefit from industry-specific solutions. It is okay to ask software providers if they have served your sector in the past during the selection process. This way, you can choose providers that offer more industry-specific systems and thus provide higher efficiency.
#7. Assess Provider Viability
The viability of an ERP software provider is essential to consider as far as ERP selection criteria, including:
- Product viability: how long has the product been available or on the market, what does the future look like for this software, what is the research and development investment in the product(s) being offered to you?
- Size of customer base: how many customers are actively using the software?
- Financial status: how profitable is the software company?
The selection tips we have outlined here can help you make the best ERP decision, avoid unsuccessful solutions, and avoid technological nightmares. Remember, after selecting your ERP system, there is quite a long process ahead of you. By managing the selection process efficiently, you will help yourself and make a difference in your business processes.