There are multiple decision points to consider when purchasing a new ERP system. Careful evaluation of a few key criteria can help you make the right decision.
Consider future business goals.
Ask yourself where the organization will be in five years and make assumptions based on that strategic plan to ensure that you are looking to the future when you begin preparing for system implementation. Does the new system meet your business strategy? How does it perform in terms of speed, reliability, and integration with other systems? Does it meet specific industry requirements that your current system can't?
Cost is certainly a factor, but it should not be the primary consideration in an enterprise resource planning assessment.
Less costly systems can lead to more problems in the future, including an inability to adapt to changing needs. If it proves to be the best fit for your company's needs, it may be more cost-effective to choose a more expensive integrated system. Weigh what each ERP solution can offer against the goals you have set for your company. The ultimate goal is to make your business more efficient and profitable. Finding a solution that provides the strongest overall return is more important than limiting upfront costs.
Manipulate.jpg data in your ERP system
Being able to act on the data in your ERP system is critical.
Carefully evaluate your ERP system's ability to get information into the hands of decision-makers. Communicating changes and trends allows managers to better understand current operations and future needs. Sometimes, a built-in reporting system is enough; If not, consider combining a business intelligence system with an ERP database during the selection process. The type of business you have will help determine which reporting capabilities you need to comply with current regulations.
Maintaining profitability in any given project often depends on your ability to make reasonable estimates.
This is where the right ERP system comes in - it will extract information from data related to labor, materials, and ancillary services to accurately and timely reflect the total cost of the estimate. From there, it can determine the true profitability of the project. In addition, the software allows you to save all project data as templates, which can give you a head start when making predictions and quotes for new projects.
Choose a deployment model that allows you to best meet your business needs, whether on-premises, in the cloud, or a hybrid environment.
During your ERP evaluation process, determining whether a deployment model or acceptable alternative provides an important context for evaluating vendor suitability and provides a framework for determining long-term ownership costs. For example, with a cloud-based solution, you can avoid investing in expensive hardware and use a software-as-a-service (SaaS) model to reduce on-site workload requirements.
For most organizations, the goal is to expand and grow.
Therefore, look for an ERP solution built on a scalable architecture so that it can evolve with your company. Think not only about what you need now but also what you might need shortly. You need a solution that is flexible enough to accommodate evolving business processes and new initiatives, and scalable enough to include more users. You should also be able to gradually introduce new ERP capabilities as requirements change.
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