What Should SMBs Consider When Choosing an ERP System?

Sep 25, 2020
Nandinee Biswas
ERP System ERP System

Adopting the right technology is the best decision any business makes. Modern enterprise resource planning (ERP) software is one such technology-driven application designed to propel organizations run their businesses to the best of their capabilities.

However, deploying ERP software is always an expensive proposition in terms of both time and resources. And yet too often, businesses are dazzled by promises and hypes created by vendors who fail to keep up in the long-term. Besides, the market is also flooded with a multitude of options, which makes choosing an ERP system quite tricky.

Tips: How to Choose ERP Software?

Several factors need to be considered while identifying the right ERP software. Here we have included the list of tips for small and medium-sized businesses (SMBs) to follow and find the most appropriate solution.

Clearly figure out your business requirements

When you're ready for adopting ERP software, begin planning by figuring out what your business requires. Start with carefully focusing on your business processes, identify the shortfalls, inconsistencies, and challenges of managing them. The more specifically you understand your business management needs, the better you are able to evaluate the ERP solution.

Being assumptive or absence of requirement planning is often the reason for derailed ERP implementation project. Also, without a good fit, you may end up stretching your budgets and timelines to support expensive customization.

So, make sure you engage enough to analyze your business requirements and implement an ERP solution for small and medium enterprises equipped with tools and features to sustain your industry-specific requirements. The right ERP system offers faster ROI and has extensive long-term benefits.

Analyze and compare the ERP vendor offerings

Now that you know what your business needs, look out for an ERP software that has features, functionalities, and technologies to meet them while avoiding being overwhelmed with low costs and striking offers.

Choosing the right ERP vendor and software solution requires you to follow the big-picture approach. There are high chances that the requirements you have identified now, change in the future when your business starts scaling. To support this, you need a future-ready ERP software that allows customization and integrates with other applications to accommodate the change.

ERP Implementation

Understand ERP implementation cost and benefits

There is no doubt that the initial ERP implementation costs may seem to be a hurdle in selecting the right ERP for SMBs. So, it's important to know that the value you would gain from it can outdo your initial financial investment.

When you deploy an appropriate ERP solution, it makes your business procedures much leaner and streamlined. The system automates the processes, eliminates manual handling and re-works, thereby reduces the manpower costs. Further, modern ERP software has built-in intelligent features that increase data consistency, helping you develop trust among the customers and create more loyal clients.

A good cloud-based ERP system even increases your business productivity and enables you to capture significant revenue-generating opportunities needed to keep up with steady growth.

Considering ERP implementation

Finding the right ERP software and consulting partner for your organization is the basic step towards successful implementation. After you have completed this stage, you need to consider other aspects of the ERP implementation.

Firstly, the timing is often a matter of concern. Though in most cases, there isn’t any perfect time, but there are definitely better times than others. For example, before you plan to expand your business or when your current systems need to be upgraded might be the right time.

Secondly, support of your executive team. Successful ERP software deployment needs extensive backing from the key internal team members right from the beginning when you plan to get new software.

Lastly and most importantly, the approach. Adopting the right methodology is fundamental for ERP implementation success. For this, you need thorough project management and effective communication between different internal departments and with your ERP vendor.

Provide a common platform for all HR activities

The next-gen HRMS software has a single database to store information and offers a common platform for the HR team to manage human resources across all the departments of your organization. This helps the HR department to plan and conduct activities to connect with all the teams and at the same time boost their engagement.

Understanding technologies

In addition to all functionalities, the ERP system for small and medium businesses needs to feature future technologies to make it easier for your employees to adapt the system and handle operations more efficiently. These include real-time reporting tools, intuitive UI, incorporation of Artificial Intelligence, improved data security, ability to integrate with third-party applications, and extensive customizations.

Choosing the Right ERP Vendor

Focus Softnet is a trusted web-based ERP service provider for nearly three decades, working with businesses of all scales and industries. We offer the best ERP solution for small businesses that your staff could use without any hassle and improve overall productivity.

Fill in the form to talk to ERP consultants and get tips on how to choose ERP software that can maximize your return on investment.

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