The reasons for an enterprise resource planning system are quite clear. The ERP system you choose will be a platform through which the various functional areas of your company will be integrated into a unified whole. It's an umbrella that covers and connects all of your business areas and systems, enabling you to share data and make better data-driven decisions throughout your operations. Choosing and implementing ERP software solutions can help you work smarter and improve the efficiency and visibility of your entire business process, which includes everything from purchasing and sourcing, manufacturing, and inventory control to sales and marketing, distribution, and customer relationship management.
1. Customer referral or recommendation
The ERP software vendor should be able to provide you with the names of some customers that you can contact and gain insight into the entire implementation process. It's important to note that you can't just focus on the software itself, but should carefully consider the collaborative experience and the overall technical/business acumen that a vendor's implementation team brings to the table when working with a company like yours. In many cases, ERP systems fail to live up to expectations, not necessarily because of flaws in the software, but because of problems in the implementation, such as inadequate communication.
Listening is important, as is being responsive and building strong relationships (in addition to powerful software solutions). Change isn't just about technology, it's about processes and people. People stuff isn't "soft" and you'd better make sure you can trust your people and build a strong partnership between your people and the ERP vendor's people.
2. Ease of use and contextualization
Every functional area of the business uses some type of data every day and doesn't use others. The user experience should be tailored to each user so that only the most relevant information is presented. This includes the contextualization of international companies that will require region-specific data and units of measurement for all regions. In essence, a good ERP system will be able to provide the right information to the right people at the right time in a simple, accessible way. You should be looking for a great, customizable user experience, or UX. If you need to create clumsy solutions to localize and contextify your ERP system, this is a red flag. Your ERP system should be ready.
3. Long-term costs
It's easy to get caught up in upfront costs, but you really should consider the long-term total cost of ownership (TCO). Consider the long-term implementation costs associated with change management. Your ERP system should be set up to reflect your future state of business processes, so as the processes evolve, so will your ERP system and suppliers.
Use the 5 things listed above to answer the question of how to choose the right ERP system (and vendor) for you.