Factors to consider while selecting an ERP software

Important Factors to look upon while selecting an ERP Software

Selecting an ERP system can be complicated and time consuming especially if one is not absolutely certain about their requirements. The necessity of an ERP system is fairly obvious. The ERP system you choose will be the platform through which the various functional areas of your company cohere into one fully integrated system handling the business processes. It’s the umbrella that covers and connects all your business areas and systems, enabling you to share data and make better, data-driven decisions across your entire operations. Selecting and implementing an ERP software solution helps you work smarter, improving efficiency and visibility across your business processes, which includes everything from purchasing and sourcing, manufacturing, and inventory control to sales and marketing, distribution and customer relationship management. Companies who seek to adopt/upgrade to an ERP system do so in order to integrate the different programs they’re using for different departments into one suite. Now there is multiple sway of options ranging from on- premise to the cloud and hybrid systems.  The first thing to do is to consider the requirements and the best fit system for you and then implementing it. The cost of a failed implementation can be staggering, and costs go way beyond wasted financial investments to include disruption of business functions, frustrated employees, and frustrated customers. Apart from the financial losses, there can be other losses such as data loss, migration issues, time waste and in some cases also hault the company as a whole until another system is implemented.

  • Scalability and Flexibility

One has to also consider the features they’ll need as the business starts to grow. An ERP system must be flexible enough to scale with your needs as your business grows. An ERP system that isn’t efficient will be outgrown from in a few years but not without facing consequences. You need to have that flexibility aspect integrated into your ERP system from the start. Otherwise, an “inflexible” ERP system may actually hinder your growth, rather than support it to progress. What you want an ERP system to be is a platform for growth, meaning it’s flexible enough to support your growth and integrate emerging technologies. What you want to do for any business is to be future – proof. And a flexible and agile ERP system helps you do just that.

  • Customer recommendations or testimonials

You can’t just read the sales pitch of an ERP. An ERP software vendor should be able to give you the names of a few customers to whom you can reach out and get an inside look into the whole implementation process. It’s important to note that you can’t just focus on the software itself, but should be carefully considering the collaborative experience the vendor’s implementation team brings. In many cases where an ERP system fails to live up to expectations, it’s not necessarily because the software was deficient, but rather, something went wrong such as inadequate communication, implementation issues, user – interface being too complex.


  • Long-term costs

It’s easy to get caught up in upfront costs, but you really should consider the total cost of ownership over the long run. Consider long-term implementation costs related to the management. Your ERP system should be set up to mirror your future-state business processes. It should be well worth the investment with future returns.


  • User-friendly and easily accessible

Good ERP software provides employees the ability to work however, wherever, and whenever they need has boosted productivity considerably. What you don’t want to do is tie your employees to desktops and their offices. Imagine a salesperson that couldn’t access key customer data on the move, but is instead tied to a desktop if he or she wants to access key customer data. Cloud ERP specializes in this aspect where other kinds of system may have drawbacks. Business data needs to be accessible from wherever business happens. An ERP dashboard should be mobile friendly as well. When your employees are on the go, they’ll be able to easily access key workflows and data to avoid prolonged downtime. Employees can enter data directly from the field; it reduces the risk of errors such as multiple entries.


  • Customization 

One of the major benefits of cloud-based ERP software is their modular nature, allowing businesses to optimize and customize software to their particular needs. However, many businesses fall into the trap of purchasing many customization options that they don’t need and paying for them without ever utilizing the full potential. You need to be able to focus on what you need rather than being swayed by fancy features that may not be utilized by you.



Careful selection of the right ERP system that best suits you will boost productivity as well as making the lives of everyone easier. Take time and consider the above factors, you can select an option that will save your business time and money, and helping your business grow to the next level.

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