Posted by Indusa Admin on October 27, 2015 6:17 am
Choosing an enterprise resource planning (ERP) system can be challenging and filled with many anxious moments. Since ERP spans the entire enterprise and will forge the course of how you do business for at least the next five years, you can imagine the anxiety it creates for the person responsible for the outcome.
Nobody wants to be responsible for something going wrong which often encourages businesses to put off implementing a new ERP solution – even if they really need it. Since an ERP system affects every unit of business, the pressure is even greater to ensure that the system works.
Selecting the Best ERP System
The study “Best-in-Class Strategies for Selecting an ERP Solution in 2013” conducted by the Aberdeen Group (2013) examined how to select an ERP system, including the top attributes organizations look for in the software. The number one attribute that was looked for was functionality, for instance how easy the software is for the end users to access, manipulate, or navigate.
With the second most desirable attribute being ease of use, it’s safe to say that businesses want a simple and yet effective solution to meet their needs. The selection process doesn’t stop there; although the software is easy to use, it also needs to include the features that accommodate the needs of your company.
Other Key Factors
There are a number of other factors that need to be taken into consideration, such as the needs of individual business units, the cost of implementation, and the organizational structure of your company. What worked at your old job or at your friend’s company may not be the correct solution to your current business problems. That being said, just because the decision to implement an ERP may be daunting doesn’t mean you should put it off. Not having an up-to-date ERP system may actually be harming your business and profits.
The Risk of an Outdated ERP Solution
Owning an outdated ERP system can affect your business in several ways, including negatively impacting sales. If your competitors are using a more appropriate system which allows them to seamlessly conduct business, it may draw more customers, especially if doing business with you has become difficult or confusing by using your old ERP. Another issue with an outdated ERP system is difficulties with IT architecture. Supporting older systems becomes increasingly difficult as time goes on. Older systems are more difficult to maintain and more costly to recover from in the event of an outage. Procuring new ERP software not only makes your business more efficient, but can also end up saving you money – regardless of the initial cost of implementation.
“I believe purchasing an ERP software should be viewed as an investment, not an expenditure,” says Keith Reali, Solution Architect, Indusa. “The benefits should pay back the investment over time.” His new e-book “What Will My ERP Cost? Assessing Risk for an Achievable ROI” not only discusses how and why you should choose a new ERP system, but also how to calculate the potential risks, benefits, and opportunities associated with implementing new ERP software.
If you’re interested in learning more, be sure to check out these resources from Indusa:
- Top 5 Things You Should Consider When Buying ERP Software
- Questions Every CFO Needs to ask Before Choosing an ERP System
- Keep Your Workers Productive With Enterprise Planning and Automation
- How to Avoid a Failed AX ERP Implementation
About the Author – Keith Reali
Keith is a financial and management executive with broad experience in all aspects of business including general management, project management, cost management and financial management.