Enterprise Resource Planning (ERP) systems are essential for modern companies. However, choosing the right system can be difficult.
An ERP system is critical for upgrading your company’s operations by improving business process efficiency.
This is thanks to an ERP system consolidating disparate business processes into one central system – eliminating data silos and improving business reactivity.
In the current market, which is constantly evolving, being able to respond to changes effectively is essential for long-term success.
However, ERP systems can frequently be complex and convoluted, as integrating such a system comes with challenges.
SYSPRO understands this and has created a five-step process for choosing an ERP system to help companies expedite this process and make the right choices.
We have unpacked these five steps, below.
Step 1 – Assessment
The first step is to take stock of current business processes and how they are being managed – noting current challenges and potential future risks.
This includes assessing factors such as whether current systems are scalable for business growth and if they can integrate and automate business processes effectively.
Based on these determinations, companies will get a firm idea of where their current systems are lacking and what they must look for in a new ERP system.
Step 2 – Set goals
Once the assessment is completed, a company must outline its goals and requirements based on these results.
This includes creating a timeline for decision-making and ensuring that the team selected to oversee the new ERP system is properly equipped for their tasks.
This team should be built by ownership and key department stakeholders, and include internal sponsors from sales, HR, accounting, and order management, among others, to ensure each department can contribute to the process.
Step 3 – Set a budget
With the team and goals set, the company must create a comprehensive budget for the ERP transition.
This must consider initial expenses, the execution process, possible adjustments, and continuous support.
ERP should also be treated as a continuous investment rather than a one-time purchase, and this must be factored into the budgeting process.
Step 4 – Assess ERP options
The next step is to assess the available ERP systems and weigh their features, functionalities, and pricing against the set budget and goals.
Ideally, a short list of two to three systems should be made based on this, and the company should use independent research and a consulting firm to help determine which system is the best choice.
Step 5 – Testing
Once the ERP system has been chosen, companies must test it in a controlled space.
Feedback from this test can further refine the full ERP transition process and ensure a company is getting what it wants.
