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What to consider when selecting and implementing an ERP system

Selecting and implementing a new enterprise resource planning (aka ERP) software is a huge pain for many businesses. That’s largely because of the inherent costs and logistical challenges that it poses.

You’ve got to consider all of the licensing dollars, maintenance, training, time, and more that goes into making the switch. It’s a common concern for business. Nearly 50% of companies are soon planning (or have already started) to acquire and upgrade their ERP system.

To make the implementation as painless as possible, you’ll want to ensure that you do your homework on selecting the right software ahead of time.

Lucky for you, you’re reading something that can help you out.

Here’s what you need to know before you implement your new ERP system.

Consider your organization’s needs

ERP software can vary greatly in terms of software capabilities.

Keep in mind your needs, both in the present and the future. The last thing you’d want to do is spend on a system that is a bad fit for your business. That goes for both overkill (too many features that cost a lot and aren’t relevant to your business) and underkill (limited features that save money, but can’t fulfill your needs).

Did you know? According to Panorama’s ERP report, the most common reason to implement ERP was to improve business performance.

Additionally, you’ll want to look into ERP software that’s relevant to your industry and company needs. It’s always a plus if you’ve got the tools that are custom-crafted to answer your unique issues.

Key takeaways:

  • Define the scope of the project and your organizational needs
  • Study the capabilities of potential ERP software to prevent a bad fit
  • Seek out a system that works within your vertical

Consider the flexibility and ease of use

You’ll be relying on your ERP software a whole lot. Choose a system that both has the features you need AND offers an intuitive user interface that works for your staff.

Pragmatically, that means having customization options that present the exact data that specific people need to see – and nothing else. If you need to create weird workarounds and frustrating loopholes to get work done within the ERP system, you should look for a better fit.

Additionally, make sure that your ERP system fits the needs of the modern business. It’s extremely beneficial to get a system that’s cloud accessible so you can work from wherever you are. That’s also true for mobile compatibility, which is quickly growing in adoption and usage in the ERP space.

Key takeaways:

  • Test out the ERP software first to see if it’s easy to use and intuitive
  • Ensure that it’s customizable to your needs
  • (Optional) See if it’s mobile and cloud-friendly and accessible

Consider the long-term ROI

Remember that ERP software is a means to an end – that is, growing your business and becoming more profitable than before.

While the immediate costs are something you should definitely consider, also keep the total cost of ownership (TCO) in the back of your mind. If your ERP system can evolve to fit your growing needs, you’ll find that the TCO is well worth it overall.

It’s easy to go overboard with costs. In fact, 64% of ERP projects go over budget.  That’s why it’s important to calculate the tangible ROI math of your ERP software. We like Acumatica’s calulator for that purpose.

Key takeaways:

  • Determine not just the initial costs, but the overall costs of the ERP software
  • Partner with an expert to help you determine ROI and TCO

To help with understanding the costs and implementation feasibility, it’s always a smart move to partner with an ERP systems expert. The value that they add comes in handy when determining which ERP platform is best for you in terms of capabilities, costs, implementation, and more.

How modern ERP helps businesses make better decisions

According to a recent report, 44% of supply chain leaders have already implemented an upgraded ERP (Enterprise Resource Planning) system or are currently in the process of implementation. Around half of these organizations report undergoing this process simply to replace an outdated software system. However, the key to success with an ERP is fully understanding the benefits it provides. Modern-day, cloud-based ERP systems – such as the Acumatica platform – are invaluable tools to a business owner and management team, especially in a fast-paced decision-making environment.

As a uniquely specialized managed services provider, AppSolute has explored the top four ways that a modern ERP helps businesses make better decisions:

Simplify business health reports

Successfully owning and operating a business of any size is no easy feat. While most business owners have an idea of their company’s overall health, it can be a long and complicated task to fully analyze performance. With a modern ERP in place, you no longer have to wait for reports and analysis from various departments before receiving a full picture. Instead, all the crucial information you need is presented in a comprehensive manner at your disposal. In turn, this allows you to identify your business’s strong points and overcome any minor weaknesses before they turn into critical problems.

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Related: 8 Business Benefits of Having Managed Services

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As your business grows, the day-to-day activity and the operation as a whole become drastically more complex. With a modern ERP in place, you eliminate common time-consuming mistakes like data re-entry with access to real-time data and information across all departments. In turn, each department is able to collaborate with one another more efficiently and effectively. Modern ERP software allows every aspect of your business, from manufacturing to accounting, to operate in sync within a single system. This allows all senior management from numerous departments to offer valuable feedback while looking at the operation in its entirety.

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Related: 5 Signs You Need an ERP System

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Focus on customer retention and pursuing sales leads

With a modern ERP, many repetitive, manual processes can be drastically reduced or eliminated altogether. In turn, this allows employees to focus on other aspects of their job. For instance, instead of spending hours entering data into a spreadsheet, employees are free to focus on customer retention, sales leads or other revenue increasing tactics. Similarly, this eliminates frequent human errors and makes the information more accurate and accessible to management.

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Related: The Difference Between Accounting Software and ERP Solutions

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Fine-tune targeted marketing campaigns

A compelling advantage of using a modern ERP is the ability to track customers from the beginning of their journey to the end. The data is stored and compiled to more quickly and easily identify your target audience. In turn, you can be more confident in your targeted marketing campaigns utilizing this data. Along with saving an immense level of time, it can also eliminate the guesswork associated with marketing and improve your overall ROI by up to 33%.

Remain competitive in your industry

Above all, one of the greatest benefits of implementing a modern ERP system is to stay ahead of the competition. In today’s technology-driven business climate, it is likely that your competitors are already reaping the rewards of the software. While older, standard methods are still utilized, business owners who invest in innovative solutions save time and money in the long run. This allows them to achieve more accurate results and make better, more informed decisions for their business.

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Related: 6 Best IT Practices for Your Business

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Contact us today to learn more about the benefits of modern ERP systems like Acumatica, and how to get the support you need to maximize them for your business.