How do you select the right ERP system?

Selecting the right ERP system is crucial for any business's success. To do this, start by benchmarking your business KPIs against similar organizations in your region that have implemented the same ERP. Consider long-term scalability and whether the ERP offers cloud-based solutions to accommodate future growth without significant hardware investments. Reading reviews and seeking advice from those who have used the ERP can provide valuable insights. For instance, a publishing company in my network recently opted for an ERP system after benchmarking their operational efficiency against industry peers using similar ERPs. These steps ensured they selected the right ERP system tailored to their needs.

It’s key to plan your selection of ERP systems based on the Nature of your business , vision & most importantly your key objectives you would like to achieve. Well defined processes which are specific to your businesses could be a key input in your journey to the ERP system. Although the ERP systems are built based on best practices it may not cater to your processes which would be native to your businesses or may not be productive or prudent to follow the processes due to cost factor or operational feasibility. Having said that avoid making the mistake of too much customization which will be counter productive and will be an overhead in upgrades ! It’s always exciting to have a new system rolled out brings new perspective to your business.

Implementing an ERP system is an investment, so it's crucial to evaluate the ROI before making a selection. Choose an ERP system based on your business needs and organization size. Since each ERP offers different features, it's important to understand its capabilities and determine the business value it will provide before implementation.

Before looking for an ERP system, take a moment to think. It's like checking a map before setting off on a trip. By knowing your business's current situation, strengths, weaknesses, and goals, you'll know where to look for the right ERP. It's like setting up a GPS before a road trip – it makes the journey smoother and the destination clearer.

The ERP industry is like a busy market with many vendors offering different solutions. Without research, it's easy to get lost. But if you know what you're looking for, you'll find it. Proper market research isn't just about knowing what products exist; it's about finding the one that works best for your business. The more you know, the better your decision will be.

When you're tackling a complex task, especially if you don't have the relevant experience, it often makes sense to bring in an expert with relevant experience. You do this when you build a house, make repairs or solve health problems. Also, when choosing and implementing ERP, attract the right expertise. You can hire employees or hire an independent organization. I believe this step is critically important as it can save you many months and even years, and a huge amount of money. Mistakes made at the planning stage lead to multiple and costly mistakes in subsequent stages. “Measure twice, cut once” is the best recommendation here.

Start with ERP education, so that everybody involved knows what ERP can and, just as important, can't do. Then document what you want a new system to achieve (and don't confuse that with what you want it to do!). Only then begin your journey.

The ERP industry is a whole world where expertise of your partner is extremely important. Some tips here: 1. Don't blindly trust marketing. Any sales person will tell you their system can naturally do everything. As a rule, there are nuances here. 2. Trust practical experience. Ask to demonstrate real implementation examples and specific business problems solutions. 3. Take advantage of the experience of similar organizations in your industry. Try to find those who will be willing to share their experiences, both positive and - especially important - negative. 4. Find experts who will be 100% on your side, and not on the side of the vendor or system integrator. Then you will solve your problems, not the problems of the salesperson.

When you need to implement new ERP system, the most effective way is to do some benchmark; Map the same organisations from the industry which implement different systems and analyse the results; What works best and what doesn’t works, What difficulties occur during the process, How much time it took to implement the system, what was the previous system? After completing the analysis it would be much more easier to choose!

A demo or trial is like a test drive before buying a car. It lets you try the controls, feel how it drives, and see if it suits you. An ERP demo lets you see how the system will fit into your business. It's the practical part of your research, letting you experience the system's operation firsthand.

You can see the demo and the user interface is definitely important. At the same time, for a complex ERP system, what is much more important is the presence of built-in business content (as opposed to a simple development environment), its speed, reliability, scalability, integration capabilities and, ultimately, the ability to solve your specific business tasks.

Every ERP system has its own advantages and drawbacks. Comparing them is not just about listing features, but understanding what each one means for your business. It's where your assessment, research, and demo come together. This step helps you make an informed decision.

When comparing the pros and cons of selecting the best ERP for your company, it is essential to consider two more aspects: 1. Deeply examine the value proposition of the partner who would implement the system. Check if they include knowledge transfer and the methodology for this process. 2. In my experience, one of the best ways to shorten the learning curve is to include shadowing services from the consultants to end users. Throughout the entire implementation process, the end users need to learn to do some critical activities, and configurations to ensure continuity of operations after the system is released.

Choosing an ERP system is like finding a long-term business partner. You need to think about whether the system fits your business culture, if your teams can learn to use it easily, and if it will work as your business grows or changes. Remember, an ERP system isn't just a tool – it's part of your business.

To ensure that you choose the right one for your individual business needs, here are some practical tips to consider when selecting an ERP system. 1. Make sure it will meet your current and future needs. 2. Consider scalability options: Will an upgrade be necessary if your business demands more support? Is a cloud-based solution available so you don’t have to worry about big investment requirement on hardware to be installed onsite? 3. Understand pricing scheme: What kind of fees come with installation, training, maintenance, hosting database etc – can these costs add up quickly over time? 4. Read reviews (or talk to someone who has used the product).

Selecting the right partner is equally as important as selecting the right ERP system. A good partner can make a bad ERP better, likewise a bad partner can make the best ERP a disaster. Understanding whether your support comes from a local partner or direct from the developer can often dictate the quality of support you receive. Local partners generally have an edge on understanding your business, your needs and goals, and how to align the software to those needs. A business will be spending a significant amount of time working through requirements, process flows, and trainings with their support team. Make sure you select a partner that builds trust in the process and works well with your team.

Formulating a ERP functional capability matrix based on the expected quantified business outcomes will help understand which functionalities in the ERP will help drive the expected business outcome. That will be vital for a logical decision making.

1. Where are the Cloud data-centers are located? How you're going to follow the Privacy law in all countries you operate? 2. The only 3 things make sense in real estate: location, location, location. The same in ERP but from localization prosective for each country: how good it is, how frequently it is updated, what is the automation level to execute the local fiscal processes?