When it comes to managing a business, you need an ERP system that can effectively handle all the data and analytics needed by your organization. But what exactly is ERP software? How do you choose the best one for your needs? We’ve listed out some tips which will help you make the right choice:
Know Your Company’s Needs
Before you start searching for the best ERP software, it’s important to know your business needs.
First, you need to know your business processes and how they work. This will help you determine if an ERP solution is right for your company. For example, if a large part of your sales team uses Excel spreadsheets and emails with customers on the same day each month (or week), then this might not be the best fit for an ERP system that requires weekly data entry into multiple databases throughout the year.
Second, consider the environment in which your organization operates. If they have multiple locations across the country or world, then there may be different needs than those who only operate within one location. They use cloud storage or various communication and collaboration tools like Notion, Slack, Trello etc.
Set a Budget For the ERP Solution
Before looking for the best ERP solution, make sure you have a budget in mind. You should also consider what kind of savings and benefits your business will get from using the software.
A good rule of thumb is to set aside at least half of what it costs to buy an ERP solution as a deposit on top of whatever fees are charged by the vendor. This way, if something goes wrong with the project or implementation process, at least there’s some money saved up from day one. In this way, you can cover any additional expenses out of pocket until such time as things settle down again—and then maybe we’ll see some discounts!
Now let’s talk about negotiating with vendors. They’re usually much more flexible than most people think when trying to find ways around their terms and conditions.
Conduct A Demo
Many firms will go through the whole vendor selection process before bringing in the winning bidder to give a demo that will show staff what the new system will look like.
A better approach is to bring in a vendor to perform a demo at the project start. Hence, employees can envision the possibilities of the new system while there is still time for feedback. From a political standpoint, it doesn’t come across as a failure that is being forced on employees without advance notice.
Make Data Security Your Priority
Data security is one of the most important aspects when selecting the best ERP software. Make sure that your chosen system offers secure data storage and transmission options. Prioritize access controls for authorized users above all.
Data theft can happen in any industry, but it’s particularly common when companies use cloud-based solutions. To protect yourself against this threat, look for a solution that allows you to encrypt all incoming and outgoing emails before you send them out over the Internet.
Also, ensure that all sensitive information is stored on servers with strong encryption protocols such as AES 256-bit encryption.
Customization Vs Standardization Debate
There is a perpetual tug-of-war between customization and standardization in the ERP industry. The idea of customization tempts businesses to develop their own ERP apps to improve business processes or user experiences.
However, the development of customized applications might cause issues with consistency and updates over time. Whereas, standardization allows businesses to continue on the vendor road while benefiting from advances created by the SaaS provider.
Leverage Agile And Low-Code
Businesses often regard Legacy ERP systems as inflexible monoliths due to their architecture. They do not change with business growth.
With the current transition to agile software development and the wider democratization of IT allowed by developments such as low-code or no-code development environments, companies may modify.
Consider Future Growth and Scalability
When choosing the best ERP software, you need to consider your business’s future growth and scalability. The best ERP software will have features that allow them to grow with your company and be easily integrated with other systems. It should also be easy for you to customize it to fit exactly how you operate in real life.
Finally, ensure that the software is scalable. To do so, check if there are plans for future updates or support from their company (if any).
We hope this article has given you some insights into how to choose the best ERP software that meets your needs. It’s important to remember that no two businesses are the same, and there is no one-size-fits-all solution for business management. Therefore, take a step back from the hype. Decide what works best for your company before investing in new software.