How to choose business ERP software ?

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There are hundreds of ERP and Business software’s across the globe and choosing software that will suits your business is a confusing task.

However, we will look in detail at choosing the software that will comply with businesses. But before that, let’s take a glimpse upon way is vendors are providing business software’s or ERP.

Types of business software’s

Software’s available in the market are of three types.

  • On-premise software, this type of software are installed and controlled over own physical location hardware and maintained by the installer.
  • Hosted software’s are something that you, yourself maintain it on servers that might be rented or owned which is connected to the internet and is maintained and monitored by yourself. And can be accessed from anywhere in the world as well.
  • Whereas SAAS (software as a service) which is maintained and monitored by software provider and you get a license for using it for a certain period of time upon paying some rent. It gives you access from around the world, you just need the internet.

However, whatever may be the reasons for companies to implement the software, but before that, they need to answer some questions, make research within their companies, identify needs.

Identifying needs before choosing software   

Before you approach the software vendors, you got to identify your Business processes. Ask yourself questions like why you exactly need the software? What business process you want to take control of?
Once you identify the process, analyze those processes closely and calculate the benefits, costs and payback period. You may hire an ERP consultant if you fear that processes; needs and analysis were done are poor by you.

70% companies who implemented software needed customization (Source: Panorama’s 2017 ERP report). Therefore, look for the vendors who meet your needs, and ask them of customization, so software properly fits in.

Analyze upon the benefits realization that will take place upon the implementation. You can also benchmark your competitors, which might help you make a decision.

Vendor’s selection

Assuming that you have done the above task there are certain things that you need to make sure before hiring a vendor.

46% of companies who hired vendors were dis-satisfied, whereas only 21% were satisfied and rests were neutral (Source: Panorama’s 2017 ERP report). Therefore make sure that the Vendor you choosing must have a solid experience.

  • Some vendors just disappear after selling their software, or wont support you after sales. Your business rely on your ERP software so if its failed, there is a high chance it may effect your business profit too.
  • Every employee may not be comfortable with software so make sure to have a training provided.
  • Ask for the period of time, vendors are going to take for the implementation.
  • To implement software, in the case of customization, vendors might need to have a detailed inspection of the process; therefore it’s a good idea to make sure of their requirements.
  • The reason you are implementing software is, of course, to enhance your processes which will eventually increase monetary benefits, so it’s good to confirm benefit realization time.

Recommendation

If you are a small or medium business, it is recommended that you go with reputed regional famous ERP than big budget international ERP giants, it will help for better communication and support; besides these kind of software are developed from the regional perspective than global business methods.

However, if your company is large and have enough budget there are very good solutions like SAP, Oracle, Microsoft Dynamics etc.

Lastly, Choose vendors if they have successful implementation rate and also have good customer services.

Every business should measure their results. It will provide outcome insights of software implementation and long term benefits realization.