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Guest Blog: Is Your ERP System the Right Fit for Your Organization?

ERP SelectionBefore you choose an ERP system for your organization, you need to be clear about your overall goal in implementing it. It is also important that you ask potential vendors and independent ERP consultants why you should consider using an ERP solution. Primarily, ERP software offers you an array of web-based tools that can assist you in various business processes including finance, production, human resources, payroll, sales, accounting, engineering and inventory, to name a few.

Even if you manage a small organization, having all the essential tool and technology can ensure productivity and efficiency in your business operations, which makes a huge difference in your total output. However, you need to carefully assess if the potential vendor offers all the tools and services that are necessary for the type and size of the organization that you manage. You should ask your vendor how the ERP system can impact your organization’s performance so you can determine if it is worth investing in the business solution.

Another relevant factor that you should keep in mind is the suitability of the ERP system with your organization. Although ERP software combines a wide range of functions in a single package, it is possible that some of these features are not essential to the processes in your industry. The system may be designed for a number of organization types such as manufacturing or retail so you need to understand which components of the system are relevant to you. With this in mind, you should select an ERP system that is geared to your organization’s specific needs in order to maximize the benefits you can get from it. Otherwise, you may end up paying more for a tool that is not entirely useful for your organization.

You should also determine the total cost of ownership of the ERP system, as this enables you to set a budget and evaluate the possible returns on your investment. Regardless of the size of your organization, the cost of the solution that you intend to purchase is a crucial factor. Your goal is to ensure your organization’s financial growth, which means you need to make sure that the ERP system is within your budget and will not jeopardize the financial stability of your organization. For most organizations, ERP systems can cost anywhere from a few thousand dollars to a million, although there are additional expenses aside from the initial investment such as the on-going technical support fees, upgrades, maintenance and hardware costs. What’s more, you should be aware of the contract period, in case you plan to terminate your subscription to the service.

As with any innovative tool, you will need the help of an IT team that can address your concerns whenever something goes wrong with the system. Hence, you should ask your potential vendor about the type of maintenance required for the software, as well as the possible cost of maintaining its condition. You need to keep in mind that it is inevitable to encounter database problems, server and computer issues, as well as having to train individuals in utilizing the ERP system. If your organization has a limited budget, then calculating the total cost of ownership should be your top priority.

By keeping all these factors in mind, you can find the best ERP solution that fully addresses your organization’s needs at a price that makes sense and gives your organization an edge above your competitors in the industry.

Note: The inclusion of guest posts on the Panorama website does not imply endorsement of any specific product or service. Panorama is, and always will remain, completely independent and vendor-neutral. If you are interested in guest blogging opportunities, click to read more about our submission guidelines.

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Written by Aaron Louis

Aaron Louis is the head blogger of ERP Systems HQ. He holds a BS in Computer Information Systems and has worked as an ERP Consultant. He currently lives in Westchester, New York. Visit http://www.erpsystemshq.com for more information.

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