ERP, or Enterprise Resource Planning, is growing at a rapid rate. In fact, according to Allied Market Research, the market is set to reach over $70 billion by 2026. This might have you wondering whether your business would benefit from using an ERP system and, if so, which one you should choose. Here’s a quick overview to help you out.
What is ERP?
Enterprise Resource Planning is a business process management software that assists companies in standardizing and streamlining their activities. It can enable you to integrate all the different departments of your company, from HR and finance to manufacturing and inventory.
The benefits of using ERP
There are a wealth of benefits to be gained from using an ERP system. By working from a single, centralized database you can reduce data duplication, save time on data entry and cut down on errors. Having access to real-time data can also result in quicker, better decision making. In addition, by linking all the departments of your business together you can increase collaboration, efficiency and productivity.
Choosing an ERP system
If this all sounds good to you, the next step is choosing which Enterprise Resource Planning system to go with. There are a wide range of tools available with no one-size-fits-all option. As such, there are a number of factors to consider when deciding on the right ERP system for your business. For example:
- What are the specific needs of your business? It’s a good idea to first identify the issues that you have and work out the goals and objectives you want to achieve with an ERP system. This will enable you to choose the most appropriate one for you and your company.
- What are the must-have features for your business? Which are preferred but not essential, and which do you definitely not need? Do you need any customization? Figuring this out will help you to draw up a shortlist of suitable systems and reduces the risk of spending more money to get features that you don’t actually need.
After you’ve worked out what your needs and goals are, contact a number of companies to discuss what they can offer you. Ideally, you’ll want to request a demo, or even a free trial if possible, before making your decision. This allows you to test out the interface and different features to see how they work and whether you like them.
Some of the issues you want to think about are: how easy the system is to use, how well it integrates with the business tools you currently use, how much support the vendor offers clients, the security measures the system has in place, and of course the cost.
Implementing an ERP system is a big investment in terms of time and money – plus it can be very costly to change vendors – so be sure to conduct thorough research before making a commitment. Once you’ve made your decision, you can look forward to enjoying the host of benefits ERP brings to your business.