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How to Choose the Best ERP Systems for Your Organization

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It is very important for an organization to select the best suitable ERP to prevent losses on implementation or failure. Not selecting the right ERP can result in failure which can be financially detrimental. The ERP selected by an organization should meet the requirements in areas such as cost, size, scalability, reliability, robustness and compatibility.

Steps to choose the best ERP for an organization

Form an expert team to design the requirements of the organization: There are different types of software products recommended for small and mid-sized companies, and some suit the requirement of large organizations. The organization can form an expert team of consultants and technically proficient employees to define the needs, the scope of automation, and the innovative features can be used to meet the technological advancement to perform better. It also helps in defining the technical platform that will suit the organization's need.

Allocate the resources and time: Allocating resources for software implementation is vital stage because it is very necessary to assess the cost which includes hidden expenses such as the unproductive time period when the employee may have to change their work procedures and the time period when the employee of the organization will be participating in software implementation, the expenses on hardware, expenses on consultancy, training etc.

On-demand software or ERP package: Organization can either spend on on-demand software where the implementation cost is reduced or on ERP software package which can be expensive and time taking. On-demand software can be taken on monthly subscription basis although the cost of subscription may be high.

Out-of-box solution or customization: Due to high competition many ERP software companies provide solution which can exactly meet the requirement of the organization but even in predefined modules certain modifications may be required at various stage of implementation because the need of organization differ. Customization has the benefit that the organization can modify the package to meet its requirements exactly but even in case of customization the future needs of the organization should be known before making changes. Sometimes, excessive customization can result in errors in different integrated modules and therefore, the capacity of the software should be known before going for it.

Examine the capabilities of vendors: The vendor should have a background and clientele which can ensure his credibility. The leading vendors may have a very high service costs and sometimes, the vendor may not provide appropriate service because the implementation team has changed. Vendors who are busy with many projects may not provide the best service to the client having many different types of needs.

The vendor should be able to provide the organization with software which can provide the needed competitive edge and also enable improvement in services and quality.

Vendor selection: The vendor should have an experience of successfully implementing ERP and the team members should be knowledgeable and reliable to provide satisfactory implementation. One can ask for demos and presentation from selected the list of vendors and compare the features and cost of vendors.

 Read Related Articles

ERP SoftwareCauses of ERP Failures
ERP SystemHow to Sell ERP to SMB or SME
Enterprise SystemWhat is the Purpose of ERP Software
Enterprise SoftwareImportance of ERP in Small Business

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