Choosing ERP package? Caution matters

Choosing ERP package is probably one of the most daunting tasks for any business as choosing the right Enterprise Resource Planning (ERP) system can significantly boost sales and profits, but one wrong can make your company bleed, which could even run the risk of shutting down. In today’s competitive market, companies need to navigate various software and vendors available and somehow pick the one that’s right for them. It all starts with asking the right questions in the beginning, which will help you narrow down your list.

Is the system flexible to grow with your company?
Companies evolve over time and it’s, therefore, important to choose a system that’s flexible enough to adapt to your changing needs. It’s best not to select a system that’s suited for your business right now, but something that will handle new operating procedures as and when they arise in future. Since you’ll be investing heavily in an ERP system, it’s of utmost importance that it doesn’t go obsolete in a few years time. Choosing a top tier vendor usually ensures this as it has experience on its side and will be there to provide support even a decade down the line.

Does the ERP system adapt to your company’s goals?
There’s no such thing as “one size fits all” and it’s important you choose a system that can adapt to your business goals and objectives and not the other way round. Vendors may try to change your business practices, but you shouldn’t give in, especially if it’s working for you. The functionality of the system should blend with your business practices.

Ease of implementation?
The next important question is how long will it take to implement the system? And will the transition to the new system be painless? This is especially a headache when company-wide integration is at stake here. The best way to go about this is to first check your ERP vendor’s track record and implementation methodology. An efficient upgrade will minimise costs and other disruption that’s associated with conversion. A quick implementation process will offer much quicker return on investment.

Is everyone on board?
More than managers, it’s the employees who will be using this system the most. So, it’s of extreme importance that they are all aware of this change and actually have the same goals and ambitions of the company. It’s the manager’s job to explain to employees about the new direction the company is headed with the new system and that everyone is on board with it. If your employees aren’t happy about the new system or still do business the old way, investing in even the best ERP system will not do your company much good.

Does the vendor have expertise in your field of work?
Hiring a vendor with past experience in your line of work is very important. These vendors also have a much better understanding of software and will be able to guide you through either a partial or a full overhaul of the system. Sometimes, it may just happen that your company may just need a smaller portion of the business that needs a new system while the rest may work fine. An inexperienced ERP vendor may not be able to spot this and will typically suggest change in all your practices, when that may not be needed in reality.

Will there be some long-term support?
After the ERP system is implemented, usually a couple of IT professionals stay back to make sure everyone gets the hang of the new system and there aren’t any bugs or glitches in the software. But what happens about 5 or 10 years down the line? It’s important to ensure that your employees receive continued training and technical support as and when needed or any new module has to be modified or added.

Choosing the right system need not be a complex task as most think it is. As long as you do your homework and your business goals and practices are cemented firmly, it’s only a matter or eliminating vendors and narrowing down the list till you find one best suited for the job.