As your business’s needs change as you expand and grow, your finance and operational systems must be able to keep up with you. For an effective tool to give your business a competitive edge, ERP software is an ideal solution – but what crucial factors should you be considering?
As a leading digital marketing agency in Australia, we know just how important it is that your operational systems can adapt as your business grows. According to Allied Market Research, the ERP software market is expected to be worth around $78 billion by 2026. This helps to paint the picture of just how vital and effective an ERP solution is for many businesses throughout the world. Rather than having individual software systems to handle HR, finance and accounting processes that don’t talk with one another, ERP software centralises all this data into one seamless system.
Firstly, what is ‘ERP’?
ERP (Enterprise Resource Planning) software is a comprehensive business process management software which integrates and manages activities such as operations, human resource, financials, manufacturing, supply chain and reporting within one cohesive system. Apart from improving business productivity, it also helps your company to make data-driven decisions.
Whether you are struggling with your current legacy system or looking to update, here are some important factors you need to consider when selecting an ERP solution that is best for your specific needs:
What are your main business requirements?
Before browsing the market for ERP software, you must first develop and create a clear checklist of your exact requirements. To ensure you are covering the full scope of the needs of the business, involve each area of your business such as purchasing managers, accounting teams, staff, even your suppliers and customers.
Sift through the feedback to analyse and categorise the requirements that are mandatory and requirements that can be implemented down the track. Once you have finalised your checklist, review it with the same people who you consulted with. Does anything need to be updated or added? Does everyone agree with the checklist? As you will be relying on this checklist when selecting an ERP solution, it’s crucial to ensure that you’ve uncovered as many pain points of the business as you can.
How will it integrate with your current systems?
Another important factor to consider is how exactly the ERP software will integrate with the current systems that are in place. Will the ERP software be able to read and use the data that is currently being used with your other systems? If having the ERP solution completely integrated with the other systems turns out to be too much of a hassle, what existing systems can be kept in place?
The ERP software you choose must easily integrate with files such as XML and .csv to ensure data updates between different systems go smoothly. Many suppliers and businesses use EDI (Electronic Data Interchange) when sharing data between different companies, so make sure that the ERP software you choose can also support this.
Compare the costs to your ROI
Using an ERP will incur costs, so it is vital to add up and compare these costs to the ROI (Return On Investment) you will get back. Costs can typically involve the initial purchase of the software, various consulting expenses getting it set up, tech expenses to update your network and servers, annual maintenance and support costs, and more.
Before committing and purchasing an ERP solution for your business, make sure that it can first surpass your minimum ROI threshold. Depending on your needs, it may seem like a costly investment upfront, but it will result in large dividends in the long-term. Your business might earn additional revenue due to providing products and services that you weren’t previously able to provide to your customers and clients.
Choosing ERP software to improve your business is a big investment that needs to be done with care and a strategic approach. Though these are three main questions to consider before making a purchase, there are many other factors to consider.
For professional ERP consultation and development services, turn to Newpath Web, a leading digital marketing agency in Australia. Explore our website to learn more information about the full range of services we provide or call us on 1300 761 806 to get started today.