At the beginning of an ERP selection project, many organizations take one look at the long road ahead and then dash to the nearest software vendor that provides decent out-of-the-box functionality. The rubber tends to meet the road, however, when it comes to deciding which modules the organization should implement.
The modules your organization chooses to implement determine the degree of efficiency and flexibility your organization can achieve through its optimized business processes. Choosing ERP software that doesn’t provide all the modules your organization needs will make it difficult for you to preserve your most vital business processes and hinder your ability to perform the business process reengineering necessary to optimize inefficient processes.
Software packages typically provide ten to 12 integrated modules designed to share data across an organization. When evaluating different software packages, organizations should note what types of modules each vendor provides. Most ERP vendors offer applications that are specifically tailored to different industries, as well as basic applications, such as CRM and financials, that are customizable based on an organization’s business processes and functional needs.
Following is a list of functional components to look for in any vendor’s financial, human resources and business intelligence modules:
- Financials – This is the first module most companies deploy because all other modules feed into it. Within this module, look for accounting, budgeting, forecasting and any other financial functions that support your organization. Financial modules should also include standard reports, a customizable general ledger and exportable data capabilities for users to create their own reports.
- Human Resources – This module should automate payroll, labor law compliance, talent management, training management and workforce analytics. Strong human resource modules typically reduce overhead and streamline business processes by utilizing online portals with electronic templates of all forms and paperwork. Look for functionality that keeps employee data secure but easily accessible.
- Business Intelligence – Perhaps the most important module for any organization, business intelligence is helpful for turning data into useable information and providing insight into your organization’s performance. These modules are complex and support better decision-making by offering much more than simple reporting capabilities. Automatic reports can be generated but report delivery should be flexible. Look for functionality that provides managers and employees different ways of analyzing and using data.
Before choosing which modules to deploy, organizations should carefully define their business requirements to ensure that the functionality provided by each module supports data-driven decision-making and furthers the overall vision of the organization. To learn more, visit our On-Demand Webinar page to view Tips for Selecting the Right ERP Software for Your Organization.