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Let’s cut to the chase here: choosing an ERP system will determine the success of your company over the next 20+ years. Therefore, the process for determining your needs and choosing an ERP system that fits those needs should be done thoroughly and deliberately. This selection is a bit like getting married – you don’t want to rush through the dating process or be fooled or bullied into making this selection.
There are many systems to choose from and primarily follow significant industries. They will be in two major categories: Horizontal systems and Vertical systems. Horizontals are more open, flexible and allow configurations to be made for special items critical to your company but where there aren’t industry ‘verticals.’
Examples of horizontal systems are Microsoft Word or Excel, where they have great functionality and allow the user to do whatever they’d like with the system. Vertical systems are highly tailored to a specific business model and have specific functionality for that kind of business. Examples of this are the diagnostics systems you see at an automotive garage. At their core, they have desktop systems but have precise sensors and programs preloaded with all models and makes of cars to properly analyze how the vehicle is running.
The most critical element here is you know your business. If you are a larger organization, assemble a team of people who have expertise in every facet, and give them the ‘charter’ to find the best fit for a system to run your company hopefully indefinitely. Each of these people will represent the company’s various needs and inform the team about what they see as crucial decision points in making the decision. In addition, this team will likely become the ‘core implementation team,’ so if they have been in on selecting the software, they are already on board to support the project.
Just like buying a new piece of clothing, you or your team will know your needs, and the right system should ‘feel right’ in addition to having all the right features. Part of that ‘feel’ is how you get along with the people you’ll be buying from and working with. These will be your business partners for a long, long time. Don’t make your decision based on a ‘first date’…be sure you not only feel comfortable but be excited about the ‘fit’ of the people and the new system.
How to Choose an ERP Software That Fits Your Needs
Choosing the right ERP software is a critical decision for any organization, one that can shape the future of your business for years to come. It's important to focus on what your needs are and how well you can articulate them. Don't get bogged down in the technical details like databases or programming languages. In today's market, you have options ranging from Cloud-based systems to on-premise solutions, and even hybrid models that offer the best of both worlds.
The key factors to consider when selecting an ERP system boil down to its functionality and how well it fits your specific business needs. Once you've found a system that meets those criteria, then it's time to discuss deployment options.
Start by clearly explaining how your business operates, from beginning to end. Developing a comprehensive document that outlines your 'current state,' including all processes and systems that currently support your company, will help you evaluate your present situation.
Next, document your 'future state'—your vision for the business with the new system in place. This future state should include key features like the ability to enter information only once, ensuring the system prompts users for all the correct data, and the capability to notify staff and drive business processes efficiently.
Real-time dashboards that display critical business metrics should be a given, alongside maintaining all regulatory or compliance data. Your ERP system will serve as your 'single version of the truth'—the one place to go to understand what's happening across your business.
Tips on How to Choose an ERP System
The journey of selecting an ERP system should involve a well-rounded internal team and a clear explanation of your 'current and future states.' Here are some valuable strategies and tips on how to choose an ERP system that we see customers successfully utilizing:
Example Data: Start by assembling a set of 10 or 20 products and transactions that represent 80-90% of your business. If the new system can handle these effectively, it's a good sign that it will fit your needs.
Demonstrations: Your vendor should be willing to demonstrate the system in detail, showing how it handles the example data set you've provided. This is also your opportunity to see the system in action and envision how your staff would interact with it.
Can the system be tailored to specific roles within your organization? Is there adequate security in place to prevent sensitive information from being accessed by the wrong people?
References: Any viable ERP system should have satisfied customers who are enthusiastic about the product and the people they worked with during implementation.
Don't hesitate to spend time referencing and understanding how things went for them. Ask probing questions like, "If you could improve something about this system, what would it be?"
Remember, choosing an ERP system is akin to getting married—you want to know as much as possible before making that commitment!
Ultimately, your decision needs to align with your budget and provide a solid foundation for running your business as it grows and evolves.
Navigating the ERP Selection Process
The ERP selection process is daunting for any size organization, and it's a decision that most companies will only make once every 10 or 20 years.
The process should start with an internal assessment of all existing systems, listing both what is working well and what isn't. Include a 'wish list' of features not currently addressed but that you'd like to see in the new system.
Online evaluations of various systems can help you narrow down your needs and the list of potential solutions. Once you've reduced the list to a manageable number, begin engaging with each vendor and evaluating them in a balanced manner.
Can they meet all of your needs? Have you learned from the vendor about how their product is specifically suited to your business or industry? How well do you connect with them, and how well do they understand your needs?
Does their company keep up with technological advancements and continually improve, or is the system static and not receiving periodic updates?
Who is responsible for the implementation, and how impressed are you with the implementation team? Remember, implementation is the most dangerous part of the process—you can have the best software in the world, but if it isn't implemented properly, it becomes worse than useless.
Call references and consider the 'fit' of the implementation partner with your organization. This is a critical process for your company, but if done well, you'll secure a great partner to help your business thrive for many years to come.
When Choosing an ERP System, Choose EpiCenter ERP
EpiCenter represents Epicor Software Corporation, and we ‘hitched our kite’ to Epicor because their ERP product is very flexible, easy to use, but has the depth to handle any level of complexity necessary for a $10 million or a $500 million company.
The software is one thing, and we love Epicor ERP (now called Kinetic), but we feel that it’s the people on our team that make the difference. We are very proud to have assembled a fantastic group of people and developed implementation methods that work. We have done hundreds of these implementations and have accumulated a tremendous amount of experience that you can take advantage of.
Your ‘fit’ with our software is just as important to us, and it is for you. If the software fits, then the next question is: “Who will you want as your business partner for implementation and ongoing support over the years”?
We have many references and a stellar reputation, and if our software fits with your business, we’d like to get to know you, and hopefully, our people fit with yours!