Enterprise Resource Planning (ERP) is a type of management software that allows organizations to integrate many different aspects of their business into one program. Human Resource Management, Project Management, Time Tracking, Finances, and many more parts of the business process can all be integrated with the right ERP software.
Who can use ERP?
From small businesses to multinational corporations, ERP software can be beneficial for almost any organization. There isn’t a standard Enterprise Resource Planning tool. They come in all different shapes and sizes, tailored for different industries. Vault has customizable features that has this flexibility in mind. Having a plan in place when searching for your ERP system can help you identify which areas your company needs to boost.
Read on: Get your ERP tailored the way you want
The ERP selection process
You don’t simply wake up one day and decide that you want to get an ERP system for your organization. It's a big decision that requires thought and a thorough plan for your ERP selection process.
The goal of implementing an ERP system is to integrate most of your business process into one system. To do that, you need to identify which areas of your business you want to integrate. The more parts of the business process that are integrated the better - but it also comes at a greater cost.
Read on: Why your business needs an ERP
Once you’ve planned everything thoroughly, you have to search for an ERP system that matches your requirements. After your research, you schedule a demo with the systems and make your final decision. It is important to identify the steps and the people within your organization that should be involved in the decision-making process. Sounds simple? Choosing an ERP can be a surprisingly complex process, with relative high stakes, as an ERP system combines so many processes. To help clarify, we’ll take a deeper dive into the whole process.
1. Be open for change
The first step is less about actions and more about mindset. Many small family-owned businesses have gotten by for years using the same methods. But as a business grows, suddenly short and easy tasks become tedious. Tracking employee time with paper is fine if you have a handful of employees. But with a larger team you’ll notice how much time is being spent on something as simple as Time Tracking. Change may be hard, but a business that wants to grow must be able to adapt.
Read on: How time tracking helps your business
2. Identify your needs.
Every company is unique and has different needs. Find out which tasks are taking the most time. Which processes are crucial and have the highest risks of errors? Maybe it’s time tracking or tracking the financial outlook of the entire company. It is important to identify your needs so you know what you are looking for in an ERP system.
Who should be involved in this step of the ERP selection process? Everyone! This is the time to take a look at your organization and see what tasks are not being done efficiently. Maybe you aren’t even aware of the possibilities that can be done with an ERP system. Follow these key steps to ensure you have the full picture:
- Assess current processes: Analyze existing workflows to identify inefficiencies and areas that need improvement.
- Engage stakeholders: Gather input from key departments such as finance, HR, and operations to understand their specific requirements.
- Define business goals: Align ERP capabilities with long-term strategic objectives, such as scalability, automation, and reporting needs.
- Identify pain points: List current system limitations and challenges to address with the new ERP.
- Determine functional requirements: Outline must-have features like inventory management, financial reporting, and compliance tracking.
- Evaluate technical needs: Consider integration capabilities, cloud vs. on-premises options, and security requirements.
- Prioritize requirements: Rank features based on impact and urgency.
- Consult experts: Seek advice from ERP consultants or vendors for insights on best-fit solutions. If you need help with this step, contact us at Vault ERP to see what we can do for you.
Read on: Why you should use ERP if you want to grow
3. Make a Budget
The possibilities of an ERP system within an organization are endless. But not every company can afford the best, most robust system. Some are made to be affordable only for large organizations. Their base models are not suitable for small and medium companies. Here, you can do a little test when it comes to pricing: break down every ERP system you are considering to a price per user. You’ll have to identify how many people will have access to the system and how much you’re willing to spend per month on a system.
Read on: How a cloud ERP is affordable for a small business
4. Identify a system
Once you’ve identified what areas of your organization could do with improvement, it’s time to search for a system. Many companies that offer ERP systems are made with only a specific industry in mind. Few of them offer a deep level of customization. ERP systems are rapidly changing, and your system should keep up with the times as well. Vault ERP works with different sized businesses, from small to large, in many industries across the globe. Look for similar companies when doing your research.
Read on: 5 critical mistakes to avoid when choosing ERP software
The systems you look at should offer features that support your business’s particular processes and industry. For example, some companies may need e-commerce functionalities, but for others it may be unnecessary.
Some key features to look out for include:
- Financial management: Comprehensive accounting, budgeting, and reporting tools.
- Human resource management: Employee records, payroll, and performance tracking.
- Business intelligence & reporting: Data analytics and customizable dashboards.
- Integration capabilities: Seamless connection with third-party applications.
- Scalability: Ability to grow with the business.
- Compliance and security: Ensuring regulatory compliance and data protection.
- User-friendly interface: Easy navigation and accessibility.
Read on: How to select the right ERP system
5. Schedule a demo
Once you’ve identified systems that meet your criteria, it is time to schedule a demo. Typically, to schedule a demo you will give a company your name, email, name of your company or brand, and position within your organization. A team member will contact you for more information to prepare a demo of the product. You will then be invited to set up a time to view the demonstration.
6. The decision
Now that you’ve seen the demonstrations, it’s time to make the decision on which ERP system is best. Consider that you want a system that will last for years. That means it has to be flexible and scalable, but also customizable for your industry. If you’re not sure where to start, contact us and we will help you get started. Good luck searching for your new ERP system!
