Daily plans. Weekly plans.Monthly plans. Annual plans! For any growing firm, keeping track of all the plans and integrating them can be really challenging. As also, failing to plan can be planning to fail! Hence adopting an Enterprise Resource Planning system can serve just like a stepping stone towards success.
Enterprise Resource Planning is a business process management software which helps in automating many back office functions related to technology, services and human resources. It helps firms maximize the utilization of their assets by allowing a panoramic view to make informed decisions. It also enables businesses to realize their vision by implementing new strategies and bringing in increased transparency within the organisation.
However, choosing the right ERP system from the zillions available in the market can be confusing. Here are five important things that you should consider to find the perfect match of ERP system for your organisation.
Selecting the right ERP system for your firm
Determine the needs of your business: You understand your business better than any other external matchmaker. Hence you need to first analyse your organization’s strengths, weaknesses and needs. Thereafter, one ERP solution should be able to address the organization’s needs across all parts of the business like marketing, finance and HR- whether it is reaching out to the target audience, big data and analytics and end-to-end employee intranet for employee communication. Integration of multiple software that helps drive Business Intelligence becomes integral.
Evaluate various ERP solutions: While many companies choose a solution based on brand name it is always advisable to choose a solution on the basis of your organization’s needs and technical capabilities. Also, evaluate the cost of changing to a new ERP software from the previous method in place.While selecting the ERP, the technology requirement must be looked at in a 60/30/10 format – 60% of what is the requirement today, 30% of what is required in the near future and 10% being focus on long-term objectives.
Evaluate the total cost: While investing in the right ERP software can reduce the future costs of human error, it is essential to evaluate the total costs and risks involved in purchasing the ERP software. Beware of the hidden costs which the sales representatives may sneak into your pocket!
Develop a realistic implementation plan: It is important to develop a realistic implementation plan to include all the activities from installing the software to ensuring that it is functional, tested and accepted by the users.
Track the potential business benefits of the new system: Adopting a new ERP software is a way to reduce costs, increase revenue, or scale for growth and hence you should estimate and measure benefits against these metrics to realize the potential benefits.It should also be relevant to the latest trends in technology as well as the organization’s short-term and long-term strategy.
So go ahead, make the right pick, read, write, research and seek advice from your employees because it is they who need to be trained and be comfortable working on the software. They are best suited to advise on where the operational gaps exist and how you can fill them by having your firm adopting the right software.