Which ERP Should You Choose?

Enterprise resource planning systems (ERP) are complex software solutions that incorporate all of the major business functions in an organization, including finance, human resources, sales, production, and inventory management. ERP software selection is a huge task; to undertake such a project requires time and resources, and will generally restructure certain aspects of your business. As such, many people ask industry specialists which ERP solution they should select. The quick answer? It depends.

ERP software selection is not a simple yes/no decision. Management must be involved from the beginning in establishing implementation time frame requirements, costs, customizations, and an overall budget. From that point, ERP software selection is dependent on many factors; with no shortage of options available in the market, careful selection is needed to ensure that the ERP solution you choose is one that will work to provide your organization with increased productivity and cost savings over the long run.

The first step is to conduct a thorough review of your company to select the business requirements that you need in an ERP. Once that is complete, you need a plan. Vendor selection should follow a structured approach that includes business-focused demos and includes team members from across the organization.

One of the biggest obstacles to overcome when selecting a new ERP system is that of cost: ERPs are expensive. That said, in relative terms the benefits could very easily outweigh the costs. If you invest $50,000 in a new ERP system and it saves you $150,000 a year in increased efficiency and reduced redundancies, is it worth it?

ERP software selection needs to take place with a long term vision in mind. These software solutions will be used for the foreseeable future, so it’s important to select an ERP that can change and grow with your organization. Despite the time frame necessary to implement a new ERP solution, the preparation phase is incredibly important in order to ensure that your ERP will provide the benefits that your organization needs.

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