Navigating ERP Selection: 7 Strategies for Success

Before exploring ERP options, it’s important to outline current and future business needs. Key areas to consider include:

• Operational efficiency. Improving operations across the board starts with identifying opportunities to streamline processes.
• Data analytics and reporting. Establishing the necessary level of visibility into operations can reveal areas that need improvement.
• Scalability. Evaluating a system’s ability to support business growth can help the organization expand appropriately.
• User experience. To better support the workforce, organizations should assess the potential effect on employee productivity and workflow.

Clearly defining these requirements can help narrow ERP options to those that best fit the business.

The ERP market ranges from broad, flexible solutions to industry-specific applications. When exploring options, organizations should assess each system’s capabilities, history, and growth potential. Key considerations include:

• Support and long-term viability. Prioritizing systems with strong customer support and a proven track record can result in a better outcome.
• Scalability. Whether the system can grow with the business should be a top consideration.
• Vendor reputation and stability. To avoid issues from vendor changes or discontinued support, decision-makers should evaluate vendor reputation and financial stability.

Carefully considering these factors can help organizations select ERP systems that meet current needs while supporting future growth and adaptation.

Evaluating the total cost of ownership (TCO) is vital in ERP selection. Key elements to consider include:

• Initial costs. Decision-makers should account for software licensing (module and user pricing), implementation, and associated fees for third-party tools and integrations.
• Ongoing expenses. Costs for maintenance, support, and periodic upgrades can be substantial, so ongoing expenses need to be taken into consideration.
• Long-term financial implications. Organizations should anticipate future costs like additional modules or scalability options to avoid unexpected financial burdens.

A detailed TCO analysis clarifies the financial commitment and aids in making decisions that align with budget constraints and long-term financial planning.

The final step is to make an informed decision based on all gathered recommendations and data. Key actions include:

• Data review and analysis. Decision-makers should consolidate and review data from the selection process to align with the company’s strategic objectives and operational needs.
• Consultation services. Organizations can use insights from industry consultants to validate the final choice, providing an additional layer of confidence in the decision.
• Implementation planning. Developing a detailed implementation plan outlining timelines, key milestones, and resource allocation can help facilitate a smooth transition to the new ERP system.

Following these steps, businesses can confidently select an ERP solution that meets current needs and supports future growth.

At Crowe, we recognize the critical importance of a successful ERP selection and implementation. Choosing the right system is just the first step, and many important decisions follow as the implementation process unfolds.

If you’d like to review your ERP options together or ask any questions, our team of ERP specialists is here to help.

Feel free to reach out to our team today.