Questions to Ask Before Choosing an ERP System

9/23/2010 at 2:14 pm by The Sage ERP Team

As ERP has evolved, it has developed so many incarnations that it can seem overwhelming when you’re trying to choose just one. What’s more, ERP systems have developed to a point where they can cover not just enterprise resource planning, but customer relationship management and business intelligence, as well. ERP systems can help enormous multi-national corporations, and they can help small local enterprises. They can handle data entry, manage payrolls, streamline processes and understand complex supply chains.

With all of that going on, it’s not surprising that first-time ERP buyers might feel a little lost. Here are a few things that you can ask yourself to see what kind of ERP solution is right for your business.

• Do you need sophisticated integration between the various components of your business?

If you’re looking to manage processes across different offices – even different continents – many ERP systems can help you. In fact, one of the main purposes of enterprise resource planning is to do just this: integrate business processes, handle automated tasks and make businesses more efficient overall. If your business wants to be more efficient – and what business doesn’t? – you’ll want to consider ERP.

• Do you have a modern IT team that can handle an evolving software?

Upgrading an ERP system is easier than installing a whole new one, so make sure your IT team is prepared to handle the challenges (and rewards) of ERP. As with any software, some troubleshooting may also be required – which will be a major headache if you’re not equipped to deal with it. That’s not to say that only major companies with enormous IT forces can handle ERP systems, but even smaller enterprises must be willing to commit themselves to understanding the inner workings of ERP software.

• Do you need your ERP system to include sales and marketing support? Do you need to be able to access your ERP system from any location, at any time? Do you need visibility across sales, customer transactions, services issues, inventory, fulfillment, cash flow and other processes?

Some businesses need functionality like this, and some don’t. Different ERP systems exist to meet the needs of almost any kind of business, so don’t pay extra for features you don’t need – but definitely don’t scrimp and wind up without essential functions. Know what your business needs so you can know which ERP system will provide it.

Choosing the right ERP system doesn’t have to be difficult. Pay attention to what your business is asking for – then consult with an ERP professional to determine which system will meet your business’ needs.