Choosing the best ERP system for your business is a big decision. The weight of this decision is made even heavier by the fact that between 55% to 75% of all ERP projects fail to meet their objectives. But try not to let this put you off, because we’ve got some advice to help you choose the right ERP system for your business, ensuring you meet all of your objectives.
Before You Commit to an ERP System
It’s tempting to find an ERP system that looks like the complete package and dive headfirst into implementation. We get it—you’re keen to start getting the results you’re expecting. But, before you commit to a new ERP system, there are a few steps to take to set you up for success:
Define your objectives clearly
Before contacting any ERP vendors, you need to define your objectives for the project. A good place to start is to ask yourself the following questions:
- What does your business aim to achieve with the new system?
- Which parts of your current system specifically are outdated?
- What exactly is causing the most common bottlenecks? Which areas of the current system cause users the most frustration?
By answering these core questions, you create a benchmark to measure the ERP solutions you find in your vendor research.
Get internal buy-in
Finding a new ERP system to implement is just one component of the process—you also need buy-in from the key decision-makers. As they guide the direction of initiatives, you could be faced with a stalled or failed ERP project without their buy-in.
While key decision-makers are important, don’t forget about the users. You need their buy-in too, because, after all, they’re the ones who are going to be relying on the new system. If you don’t have their buy-in, you’ll face problems down the line.
Identify your specific ERP requirements
Before you get caught up in all the wonderful modules different ERP vendors offer, take the time to think about the specific requirements you need. It might be helpful to split the requirements into two columns, one for ‘essential’ features, the other for ‘preferable’ features, because you might not be able to find a solution that ticks all the boxes. The features in the ‘essential’ column must take priority.
Consider all areas of your business to make sure you have a crystal clear understanding of the features your chosen ERP system needs to have. A well-defined list of requirements is your best tool for filtering potential solutions and making an informed decision.
5 Tips for Choosing an ERP System
Once you’ve defined your objectives, identified your ERP system requirements and got internal buy-in, it’s time to start the search. It can be an overwhelming process, and that’s why we’ve put our heads together to bring you five tips for choosing an ERP system that meets your organization’s needs.
Assess functional fit
First of all, consider if the ERP system you’re looking at actually does what you need it to do, otherwise known as functional fit. We know how easy it is to get swept up in fancy features that sound great, but don’t align with your needs. It’s really important that the system’s capabilities match your day-to-day operations. To assess functional fit, you should consider the following:
- User interface: Is the ERP system intuitive for all users of varying technological proficiency?
- Business intelligence and reporting: Is the information you’ll need to access easy to find? Is report generation straightforward? Is generating insights from data a relatively simple process, or are there complicated steps involved?
- Accounting and financials: Does the ERP you’re considering have all the financial capabilities you need, such as accounts receivable, payable, billing and budgeting?
- Inventory and order management: Does the ERP system provide sufficient functionality to manage and track inventory? Will employees be able to learn how to use it quickly?
- Supply chain: Does the ERP have demand forecasting and shipping management capabilities?
These questions around functional fit are far from exhaustive, but they give you a starting point to work from.
Deployment considerations
Now, let’s consider your deployment options. The big decision here is whether your organization would benefit from a cloud-based solution or an on-premises one, considering your team’s expertise, budget and target go-live date. While cloud-based systems appear to be the favorite, with 98% of respondents to one survey stating their ERP will become cloud-based, on-premises systems do still have their place.
As well as choosing between a cloud and on-premises deployment, you should think realistically about whether you’ll need to spend some of the project budget on external consultants to get the ERP system up and running. An honest assessment during this stage of the process will increase the chances of a smooth rollout.
Research the vendor
You find an ERP system that looks like it ticks all the boxes. You’re itching to get the ball rolling, but have you taken the time to research the vendor? Choosing an ERP vendor means entering into a long-term business relationship, and this step shouldn’t be taken lightly. Spend time researching the vendor to assess whether they’re well-established and have a clear vision for the ERP’s future development. It’s a good idea to check whether they’re frequently updating the platform to make sure it’s as valuable as possible to users.
It’s also wise to look for case studies and reviews to see what customers are saying about the system, because you might find a common thread that makes you change your mind on whether the ERP is a good fit. Taking the time to research the vendor may save you a lot of potential headaches down the road.
Consider scalability
Your organization grows and changes, and that’s why you need an ERP system that scales with you. Can the ERP you’re currently considering handle more users, transactions and data as your business grows? The key is to find a vendor that makes adding new functionalities/modules easy, giving you the flexibility you need to grow without being held back. An ERP that allows for the easy integration of new functionalities as and when they’re needed will help you not only make the most of future opportunities but also prepare for challenges.
Assess integration opportunities
Last, but by no means least, the ERP you choose needs to play nice with other software. Your ERP system will need to be able to connect with other business applications reliably, including ones you currently use and ISVs you might use in the future. Assessing which ERPs offer the smoothest integration processes will have a big impact on overall efficiency and data consistency, so it’s worth taking the time to dig into how they connect with your existing tools.
Ask the vendors you’re talking to about the system’s APIs and connectors, as well as what the typical integration process looks like. Getting this right means your business-critical systems communicate as they should, saving you and your team precious time.
Is Microsoft Dynamics 365 F&O the answer?
Microsoft Dynamics 365 F&O is a popular ERP system with organizations spanning many industries. It offers streamlined financial management, enhanced operational efficiency, scalability, real-time insights, seamless integration and global reach. The benefits the platform offers make it popular with manufacturers, retailers, automotive, construction and many more sectors.
How ERP Mechanics Supports Your D365 F&O Journey
At ERP Mechanics, we offer a range of services to support your D365 F&O journey, whichever stage you’re at. Whether through comprehensive analysis, end-to-end implementation, integrations or ongoing post-implementation support, we work to make your D365 journey a success.
Choosing ERP Mechanics for your Microsoft Dynamics 365 F&O implementation gives you access to deep technical expertise, competitive pricing and a modern, agile approach. We provide you with 24/7 support and a proven track record of delivering results for our clients (evidenced by our 100% client recommendation rate) as well as our Microsoft Dynamics partner status.
Work with us today for a smooth ERP implementation process. Contact the ERP Mechanics team to get the ball rolling!