5 Questions You Should Ask When Evaluating An ERP Solution

5 Questions You Should Ask When Evaluating An ERP Solution

What business problems am I trying to solve with this ERP system?

Each ERP solution is designed with a specific type of company in mind and comes equipped with its own set of functionalities. It’s important to identify the business problems that you’re planning address. For smaller businesses, you may only need the core ERP essentials, but as your business grows you may require specific ERP capabilities to manage a larger database.

How will this ERP solution affect my business processes?

ERP systems have traditionally been built to serve the needs of large corporations. It’s only recently that software companies have begun to target mid-tier and smaller organizations. Today, ERP solutions are designed to accommodate any number of quirks a business might have. That’s why it’s important for you to understand how your business process works, and what adjustments you would have to make to your processes if you were to purchase an ERP solution.

On the ground or in the cloud?

There are a number of reasons why your business may choose to keep your files stored locally. Costs, security, and your company’s need for customization may all factor into your decision. On-premise file storage is often considered to be a capital expenditure. Cloud based file storage is an operating expenditure giving you an additional expense the longer you keep you subscribe to the service. Many ERP solutions providers also offer a hybridization of the two to better accommodate the needs of their clients.

Should you get a horizontal or a vertical ERP solution?

Horizontal ERP solutions are completely integrated suites that include a module for every business process you may undertake. These solutions are often a bit generic in order to fit a number of company needs. Vertical solutions on the other hand are often what you would refer to as “specialist solutions”. These solutions are designed for one specific industry rather than stretching themselves to cover a number of industries.

What are you actually buying with the purchase of an ERP solution?

When you’re buying an ERP solution for your business, you’re not simply buying a single product that will simply be implemented and left to its own devices. When you buy an ERP solution, you are essentially buying an ongoing process of maintenance, upgrades, and support which could last decades. Each of these aspects is critical to the success of your ERP system and need to be considered before purchase.



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