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How to choose an ERP according to your type of business

12 June 2024

How to choose an ERP system according to your type of business

In recent years, digital transformation has revolutionized all sectors and markets without exception. The boundaries between the physical and digital worlds have blurred, automation and intelligent systems have been established, and we are now able to collect, process and analyze large volumes of data virtually effortlessly. These are some of the advancements that are present in an ERP. But how do you select an ERP system for your business? In this article, we'll tell you everything you need to know.

Why is it important to choose a good ERP system?

Before you know how to select an ERP system, you need to understand why the decision to choose a good ERP is important. And it is something that goes far beyond the choice of a product; It's a strategic choice that will largely determine the future direction of the company.

Selecting one ERP or another, in the first place, has a direct impact on competitiveness, since depending on the system's ability to optimize processes and obtain useful information for the business, the company will be able to remain competitive and adapt quickly to market changes.

In addition, taking care of the selection process of an ERP is vital to ensure that this system meets the objective for which it was implemented. We must be clear about the goals and that this software is capable of meeting them. On many occasions, a hasty or wrong ERP choice leads to interruptions in the subsequent operation of the business, considerable extra expenses, inefficiencies and can even affect the reputation and credibility of the company if we entrust our operations to a system that is not capable of responding to our customers, suppliers or business partners.

Ultimately, a well-selected ERP guarantees a significant long-term return on investment and maximizes the cost-effectiveness of that investment.

How to choose a good ERP? What's Next

Each sector and each business has its own specific casuistry. It is important to emphasize that the ERP system must respond to the specific needs of the company and, for this, we must carry out a detailed analysis of the business needs. This analysis will guide you in selecting the right ERP.

Although this selection process must be carried out in a meticulous way in companies of any size, we want to make special mention of SMEs. Small and medium-sized enterprises have more limited resources, fiercer competitiveness, and often experience rapid growth and continuous change. In this sense, ERP will be the key tool for their success and survival.

Below, we will evaluate those aspects that a company should take into account to know how to select an ERP system according to its type of business:

Specific functionalities

We must take into account the sectoral processes and the particular processes that the company carries out, as well as the needs and goals that the business has both in the short term and in the long term. To know how to select an ERP, these initial considerations are basic and it is the first thing we have to look at when choosing or discarding a business management software and, once selected, know what functionalities, modules or custom developments we need.

We must also consider whether our processes and needs are standard or are particular or specific to our business. Depending on the degree, we will need to a greater or lesser extent that the software we acquire is customizable and scalable, although it is always advisable for possible future requirements.

 Enterprise Scalability Assessment

Enterprise Scalability Assessment

When it comes to knowing which ERP system to choose, we must take into account not only our current needs, but also possible future needs. We have to evaluate the potential growth that the company can experience, especially if it is an SME, since as we have said before, it will be practically mandatory that the system is fully scalable and that it allows us to add equipment and functionalities easily to the extent that we need them. Continuous ERP innovation will be essential in this regard.

Integration with other tools

Data has become one of the main assets for companies. When selecting an ERP, we must take into account that it can be integrated with the other tools that the company has, such as the CRM or the human resources management system. This will ensure the correct flow of information between the different parts of the company and ensure the quality of the data.

Support & Maintenance

ERPs are software that require continuous updates and maintenance to ensure optimal system performance and prevent any incident that may arise from having a significant impact on the business. Therefore, when selecting an ERP, we must take into account both the company behind the product and the partner in charge of implementing it. They must ensure continuous maintenance and quality technical support.

Ease of use

One of the biggest challenges when implementing an ERP is training staff in this new tool. Therefore, it is advisable to choose an ERP that is accessible and easy to use for any user, regardless of their technical knowledge, to ensure correct adoption.

Implementation Time

Implementation time is an important aspect that many companies often don't consider. During implementation, there are periods when there is a disruption of one or more business operations. Therefore, the longer the implementation time, the greater the number of stops. To reduce this time as much as possible, in addition to choosing an ERP that allows you to optimize the implementation time, you must find an ERP provider experienced in implementations.

Total Cost of Ownership

For those wondering how to select an ERP system, there's an important concept to keep in mind: total cost of ownership or TCO. In addition to the initial cost and implementation, there are other costs associated with training, maintenance, upgrades, and more.

Choose your ERP system with SEIDOR

We hope this blog post has helped you get a clearer idea of what you need to consider when selecting an ERP. In any case, although it will be useful for you to know it, ERP partners are in charge of advising you and providing you with everything you need to know how to select an ERP system and choose it.

At SEIDOR, we have been carrying out ERP implementation projects with the best software on the market for several decades. If you want us to help you choose an ERP that suits your needs, contact us without obligation. We will be happy to help you.

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