ERP is the abbreviation for Enterprise Resource Planning. Even with this definition, it is still not clear what ERP is, and what the applications for it are. If the information about it on the internet seems overwhelming, fret not, we will explain it to you in the simplest language possible.
The central processes required to run a business effectively are human resource, finance, sales, marketing, customer service, inventory management among others. An ERP system integrates and, streamlines all these core functions of a business into a single system. The automation and computerization of these processes help to increase efficiency. Improved efficiency in a company almost always results in profits.
Integration is only the primary level. Most ERP systems can provide intelligence and analytics that informs the various decisions the business undertakes. An ERP system is also capable of facilitating the flow of information across departments in real time.
Here are 6 tips on selecting the right ERP for your business:
1. Business needs
Every business has its own specific requirements that must be met for the business to continue growing. While it is true that ERPs generally integrate all the company’s core processes, they are highly customizable and can be easily adjusted to suit the business needs.
Always inquire if the ERP you are looking to purchase can meet the specific needs of your business. It would be best if you never altered your business needs, and goals, because a new system has been introduced.
Every investment should be carefully thought out. Crunching the numbers to determine the return on investment (ROI) is something all business people do. For ERP software, you need to factor in implementation, installation, and maintenance costs.
Choosing cheaper software may not always be the best idea. For example, you may find that cheaper ERP software requires intensive training that may be costly to obtain.
As earlier stated, ERP for manufacturing systems are highly customizable; different industries have unique requirements. Those in retail will require a different ERP to those in education.
Therefore, if you have highly complex processes, you will need an ERP that can be customized to support all those processes.
4. Easy to update
Let’s face it. The technology world is constantly changing, and so do their products. In fact, these companies have departments dedicated to this very task. Thus, an update to a system is almost inevitable.
You will never be able to get the maximum potential out of an outdated system. Also, you may experience errors trying to complete common actions. It is, therefore, critical to know the procedure of updating an ERP system whenever an update is released. Ensure that you also find out if there is a cost involved.
5. Accessibility on portable devices
ERP software that can only be used on a desktop is very restrictive. Many companies have embraced mobile devices that can be used by employees on the go. This accessibility on different devices makes the use of new systems seem less daunting as it is generally a pleasant experience using tablets and Smartphones.
It is imperative that you find ERP software that can be used on multiple devices. The system should be device friendly.
6. Company size
Some ERP systems are better suited for larger organizations, while others are better suited to smaller organizations. Most solution providers often have a list of companies currently using their services.
You can explore this in detail to determine the sizes of the company, and then make the decision based on that information.
Use these six tips on selecting the right ERP for your business to make an informed decision!