18 May, 2021

Top 10 ERP Software Selection Criteria for 2023

Enterprise Resource Planning (ERP) simply automates the business process. The overwhelming changes in technology and business actually confuse people to choose the best one for them. Here are some factors to keep in mind while choosing an ERP system.

1. Know Your Business Needs
2. Support of Organizational Employee
3. Technology and Future Growth
4. Budget
5. Resource Availability
6. Functional Requirement
7. Establish an ERP Vendor Selection Criteria
8. Plan ERP Vendor Demo
9. Integration Capability
10. Customization and ERP Maintenance

1. Know Your Business Needs

The first step is constituting an internal steering committee to define and implement the ERP at your organization. Your business goal is the biggest factor in choosing an ERP system. The first task of the steering committee is creating a well-defined and complete list of short-term and long-term goals, business process pain points, industry requirements, and functionalities. The steering committee will overview the entire process. The business process recommendations should undergo multiple iterations before it is finalized. The final outcome is a well-documented requirement specification. 

2. Support of Organizational Employees

Employees from all functional areas are users of the ERP system. So focus on their needs and desires in the requirement list. Gaining their support helps to have a successful ERP implementation.

3. Technology and Future Growth

While choosing an ERP, you should always consider the scalability capability of the product.

Profit is the ultimate aim of a business. The ERP should be a fast vehicle for your future growth and should not be a road blocker.  Make sure that implementing an ERP opens a way to fly your business globally. It means the product should not be a version lock or with limited features or limited customization.

4. Budget

ERP implementation budget is crucial. Analyze the different packages or modules offered by the vendor and implement only those that fit your business requirement. When working on a budget, consider the cost associated with training, implementation, and customization.  A strategic budget plan helps to reduce the risk. Please remember high quality and cheap price do not coexist.

5. Resource Availability

Ensure the adequate availability of Internal and external resources during the implementation. We strongly recommend you have a dedicated team until your organization completes the ERP selection and implementation to have a smooth digital transformation. So try to get the assistance of an expert team and ensure efficient utilization of those resources.

6. Functional Requirements

Most ERP systems have several modules with an array of features and functionalities. Try to choose the right one that your company needs most. Business requirements and industry standards are equally important. If your core business is on production, manufacturing, purchasing, e-commerce, or service-based, then consider industry-specific modules. If your business operates globally, your entire accounting system should be capable of multi-currency operations, multinational operations, intercompany transactions, and country-specific taxation.

7. Establish an ERP Vendor Selection Criteria

Criteria for selecting an ERP vendor vary according to organizational behavior. Common factors to be considered while selecting an ERP vendor are industry experience, cost, scalability, user-friendliness, support for the latest technology and trends, and deployment options.

8. Plan ERP Vendor Demo

From shortlisted vendors, select the best vendor and get more information about the product. Fixing a demo helps to get in-depth knowledge about the functionalities, clear their doubts regarding functions, and evaluate the system as a whole to determine whether the ERP meets the business requirements that your steering committee drafted.

9. Integration Capabilities

Companies often own software for performing additional actions instead of an ERP. Check out the integration possibilities between your existing software with the ERP that you choose. Successful integration actually makes your system fully automated.

10. Customization and ERP Maintenance

In a competitive world; surviving your business is a difficult task. To survive in an ever-changing business scenario, you must always align the business process with the changes. If your ERP can cater to those changes by customizing the product, then your ERP is the best part of your business. It really boosts your business. It means you should give utmost importance to the customization capability of the ERP when you choose the product. 

Training and support are two sides of a coin. You should focus on giving adequate training to your resources. Also, your implementer should be willing to help as and when you need it.  The point is that a good implementation partner provides all these.

Selecting an ERP is one of the critical tasks for a business. Because it's an entirely interrelated process. Making wrong selections causes business failure.  For making success try to find more time before an action.

Final Thoughts

Rigorous research is part and parcel of the ERP selection process. Utilize the key points for evaluation mentioned in our blog and reach a consensus by prioritizing the key aspect. Remember to choose the right vendor to cater to your unique demands and requirements.

Checkout the #1 Cloud ERP - Oracle NetSuite

NetSuite is a cloud-based ERP solution. It provides a flexible platform to manage different business applications like sales, finance, marketing, purchase, inventory, and human resources. A unified system will manage core business processes. It improves efficiency, visibility,user-driven innovations, and advanced customizable tools helps to meet your business-centric requirements. 

Top advantages of NetSuite:

1. One solution for your entire business

2. Better decision making

3. Multinational, multilingual, multicurrency, multi-subsidiary

4. Customizable

5. Secure

6. Biyearly upgrade

Jobin & Jismi is a NetSuite Solution Provider with more than 10 years of experience in NetSuite implementation, integrations, and administration services. Connect with our NetSuite certified professionals for a seamless implementation experience.