How many ERP systems should you evaluate when selecting ERP software?
The number of Enterprise Resource Planning (ERP) systems you should evaluate will largely depend on your organization's specific needs, size, and industry. However, as a general guideline, you might want to consider a range of 3 to 7 systems.
- 3-5 Systems: For small to mid-sized businesses with straightforward requirements, evaluating 3 to 5 ERP systems might be sufficient. These companies usually don't have complex operational structures, so they don't need to evaluate a wide range of systems. They can focus more on cost-effectiveness and basic functionality.
- 5-7 Systems: For larger organizations or those in specialized industries, looking at a wider range of 5 to 7 systems might be beneficial. These businesses often have more complex requirements and may need specialized functionality that isn't available in every ERP system.
Remember, quality is more important than quantity in the selection process. It's better to do an in-depth evaluation of a few carefully chosen systems rather than a superficial overview of many.
Start with a needs assessment to understand what capabilities you're looking for in an ERP system. Then, you can shortlist the systems that best meet your requirements for further evaluation. Your shortlist can include both market leaders and niche solutions that are specifically tailored for your industry.
How long does ERP selection take?
As a general rule of thumb, the ERP selection process can take anywhere from a few weeks to several months. For a small to medium-sized business, the total process might take anywhere from 3 to 6 months. For larger organizations with complex needs, it could take from 6 months to a year, or even more in some cases.
It's important to remember that the selection of an ERP system is a major decision that can impact your organization for many years, so it's worth taking the time to get it right. The implementation phase that follows selection can also be a long process, often longer than the selection phase itself. It could take from several months to a couple of years based on the size and complexity of the organization.
ERP Evaluation & Selection Criteria
Business Process Alignment (Functional Fit): The key to ERP selection success lies in identifying software that closely aligns with your business processes. A functional fit is vital for efficient workflow, improved productivity, and minimal disruption during ERP implementation.
Industry-Specific Features: Industry-specific ERP solutions come equipped with features and functions that are tailor-made for your business vertical. Choosing an industry-specific ERP can significantly streamline your operations and ensure compliance with industry standards and regulations.
Scalability: To support your business growth, it's crucial that your ERP system is scalable. Ensure your ERP solution can accommodate an increasing number of users, complex workflows, and larger data volumes, supporting your business expansion into new markets or regions.
User-Friendliness: An intuitive and easy-to-use ERP system can facilitate quicker adoption among your employees, improving efficiency. Assess the system's user interface, task complexity, and the availability of user guides or documentation during your ERP evaluation process.
Customizability: While a custom ERP system can cater to your unique business needs, it's important to consider that customization can lead to increased complexity and costs. Balance your customization needs with the benefits of adopting standardized processes.
System Integration: Your ERP should seamlessly integrate with other business systems like CRM platforms, email systems, or e-commerce platforms. Smooth system integration can lead to improved data accuracy, better decision-making, and enhanced business efficiency.
Total Cost of Ownership: Consider not just the upfront cost of the ERP software, but also the ongoing costs, including implementation, training, maintenance, and future upgrades. Comprehensive understanding of these costs can help in budgeting and avoiding future financial surprises.
Vendor Reputation: Choosing a well-established, reputable vendor can provide assurance of quality and ongoing support. Review the vendor's track record, financial stability, industry experience, and customer testimonials as part of your ERP evaluation process.
Implementation Support and Post-Implementation Training: Vendor support during the ERP implementation phase and post-implementation training is crucial for a successful transition. The availability of ongoing support can ensure smooth operation and system updates.
Cloud vs On-Premise ERP: Cloud-based ERPs offer quick implementation, lower upfront costs, and scalability, while on-premise ERPs provide more data control. Your choice would depend on your specific business needs and capabilities.
Mobile Access: In today's mobile-first world, ensuring your ERP system offers mobile access can provide flexibility for your workforce, improving productivity.
Data Security: Your chosen ERP system should comply with relevant data security standards and regulations, ensuring the safety of your sensitive business information.
