How to Choose ERP and Get It Right

Key information you can’t afford to ignore

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First you have to pick the right type of product using criteria such as line of business, business size, benefits and features. Then you have to choose brand, implementation partner, timescale and aftercare - it is a complex, multi-faceted process.

Many leaders choose to leave the decision to a third party – but getting it wrong can cost more than cash. ERP is a business decision not an IT one – so don’t hand over control to others. Get involved from the start. It will save you time and money.

Like most leaders, your calendar is probably full, so you need informed advice to speed things up. That’s why we’ve created this guide using the top ERP selection criteria to help you make your choice and get it right.

Nearly 50% of companies are, are soon planning to, or have already started, acquiring or upgrading an ERP system.

To increase employee productivity, improve decision-making and personalise customer experience, ERP is now the most popular choice. But selecting ERP and getting it right is not an easy task. Solutions come in all shapes and sizes with price tags to match.

Solutions Review 2019

Few people dispute that using technology effectively is key to business survival.

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How do you know you need ERP?

When you first started you may have done the accounts yourself or hired an outside service but with growth, financial management has become more complex. Here are just some of the tasks you need to keep up to date with.

First up – what are the signs that your business is ready for all that ERP has to offer?

This is why the software you choose should include robust financials.

Because financials applications are the primary system of record for most companies, the right solution can serve as the technology backbone for your business.

• Monitor liquidity and profitability

• Create reports for stakeholders and Investors

• Provide accurate figures for planning ahead

• Carry out day-to-day accounting tasks like keeping accurate books

• File digital tax reports

• Comply with industry-specific regulations

Your accounting is becoming complex

It’s enough work to keep a whole department busy!

Financial management entails planning, organising, controlling, monitoring and evaluating the financial resources of an organisation to achieve its overall objectives.

Modern cloud ERP solutions also connect many other areas of your business e.g. human resources, logistics, CRM and sales, creating a unified and consistent view across the whole business.

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Established organisations will have collected several software solutions over time. This can get chaotic. ERP solves this by removing the spaghetti and centralising everything into one collaborative platform - a single source of truth for all your data and processes.

Legacy systems are often old, out of date and unsupported. They don’t share data with the other software in your armoury.

With a single ERP interface, life becomes a lot more straightforward.

Increases on-time deliveries by

24%

Your Business Runs on Multiple Systems

Not all business processes are financial - others could include sales, marketing and projects.

Source: Aberdeen Group

Modern ERP can reduce:

Operational costs by

23%Administrative costs by

22%

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Benefits of an ERP SolutionModern ERP systems, especially those based in the cloud, share a host of benefits. Here are some of them.

One of the greatest benefits of cloud ERP is access to data in real-time. Get important information as it comes in – no need to wait overnight for reports. Be confident that you are always viewing the latest information.

Real-Time Data

Wherever you are in the world – you and your management team are sharing the same information from a single source you can trust.

Single Source of Truth

Reliable high-quality data allows business to leverage the power of analytics. ERP systems frequently embed powerful tools for;

Just Add Analytics

• Planning and forecasting

• Demand and supply prediction

• Better decision-making

An ERP system can process different languages, currencies and accounting standards - in multiple locations.

Flexibility

Make better, more informed business decisions when you have all the information at your fingertips. Spreadsheets, charts and graphs at the click of a button help you make crucial decisions and ensure that business runs smoothly.

Better Decision-Making

Benefit from integrated business processes and accurate real-time information from a single data base. Eliminate data duplication and provide data integrity. Workflows based on best practice make employees more efficient and reduces business complexity.

Reduced Complexity

Owners of SMBs prefer using ERP systems instead of standalone solutions because it can reduce operation costs by 11%, standardise back-office processes by 77%, and increase the ability to gain real-time visibility into their data by 48%.

Source: The Aberdeen Group

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Which ERP Flavour to ChooseOn-premise ERP is a dated choice unless you are a very large enterprise with very specific business process needs. On premise is expensive because you need IT staff to run it, but in return you get ultimate control over how you set things up.

A lighter version of ERP, this has several different modules which come pre-configured to best practice – so it’s cheaper to implement and quicker to get going. Suits midsized and smaller companies by providing all the benefits enjoyed by enterprise level businesses without the need for IT staff.

Out-of-the-box ERP

All good ERP has back-office financials at its core but some options are finance-only from the start. If you are new to business technology, then a basic accounting solution will get you off the blocks. If, however you are growing fast and need to automate your finances at a fixed affordable price, then go for the new breed of Express Financials Solutions. Express financials is ERP lite you can implement in a month. The USP here is that there is further functionality as part of the package which can be opened up later as you need it. No need to rip and replace.

Finance only

Cloud ERP is becoming the default option. Access your system via the internet wherever you happen to be for ultimate convenience. Data is stored safely off site by your vendor company. Benefit from regular updates scheduled throughout the year, decreasing the need for downtime.

Whatever your business there is an ERP system designed with you in mind (probably). Look out for solutions that either mention your line of business specifically or have the modules you need e.g. supply chain management or projects.

Line of business-specific ERP

There are vendors and then there are partners. The big tech names like SAP and Oracle have a full range of ERP offerings for companies of all size and complexity. However, once you have decided on a brand name and the ERP model you like, you will need to give some thought to partners - these are the people who will be implementing your solution.

These are your trusted advisors who can set things up to suit your needs - they are the ones who make the difference between a project that fails and one that succeeds. Look for partners who can provide business process advice, act as trusted counsellors and want to stay with you through training, go live and beyond. Don’t wait until the last minute to find these guys – get them involved from the start if you can.

Vendors & partners

Cloud-hosted ERP is cheaper than on-premise solutions by 30%.

Source: The Case for Cloud-Based ERP

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6 Questions to ask when Evaluating ERP Vendors

1. Which vendor knows my industry the best?

2. Will they keep up to date with technology changes & innovation?

3. Does the vendor’s technology platform and architecture support my company’s IT strategy?

4. Does the vendor offer solutions that closely align with best practices in my industry?

5. Does the vendor offer ERP support? Training programs, maintenance and phone support, user groups and partner network.

6. Hidden costs. Look at ongoing support fees, implementation rates and number of users required. To make the most informed decision, look at total cost of ownership (TCO) over a five year period.

5 More Items to ConsiderTake these into consideration when choosing an ERP solution:

1. Case Studies & Customer References: first-hand accounts from those who are using the system can help you a lot.

2. Support: look at the vendor’s support systems. Do they respond quickly?

3. Technical Resources: learning materials. What opportunities are there for customers to educate themselves?

4. Advisor Capability: look for partners who understand your business, seek a long-term relationship and can offer good advice.

5. Experience in Development: be sure that the vendor has long-term experience in developing and improving its products.

96% of growing businesses who excel in their respective industries rely on an ERP system.

Source: The Aberdeen Group

Great news - you are almost ready to go.

We hope you have found some valuable information in this guide to choosing ERP. We understand that you now have a lot to think about. If you need further help we have experts who can help. We can give you important information on your next steps as well as up-to-date information on the changing world of ERP.

If you’re ready to find out more - get in touch now !

Key Information you can’t afford to ignore

Big tasks become achievable when you break them down into small chunks.

In Cloud Solutions help small to mid-sized companies use cutting-edge cloud technology to increase business process efficiency and achieve growth. Our strength lies in strong project teams made up of skilled professionals who work closely with your businesses to understand and automate your processes along with dedicated training & follow-up support.

Contact Details:

www.incloudsolutions.co.uk

01628 876723

info@incloudsolutions.co.uk

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