How to choose the right ERP system for your small business

Companies use enterprise resource planning (ERP) software to run their businesses. Specifically, they use an ERP system to facilitate the integration of corporate processes into a central database of finance, distribution, human resources, procurement and other departments, thereby maximizing efficiency. This technology offers four main features and advantages: business-wide integration, a common database, real-time operation and continuity. These advantages make the ERP system attractive to business leaders and drive the demand for this system.

As small businesses grow they may find that they have outperformed manual processes and need an ERP system to help them operate more efficiently. But choosing an ERP system is no small task. There are many types of ERP systems on the market and there are different options for each type.

Companies interested in purchasing an ERP system must do their due diligence so that they carefully evaluate all the relevant ERP systems in the market and finally choose the ERP software solution that helps them to conduct their business activities optimally.

But what is involved in this process? And how does a small business choose the right ERP system?

Research solutions available

Once you think you need to buy an ERP software solution, you need to find and research software solutions available in the market. Software vendors can provide a lot of information about the features and functions of their solutions Their website. Vendors will paint their solutions in a positive light and be proud of their capabilities, but you can still get an idea of ​​the various offers available.

You can also use directories that list different software solutions as starting points to see the different solutions available and their capabilities. This way it is not possible to directly compare products from different sellers, but you can still get an idea Products That is available.

Determine your business needs

You don’t just want to see the different capabilities that different software solutions offer, but how those capabilities fit your business needs and help you better manage your specific business processes. Therefore, you need to first define your business needs and expectations list and then match those requirements with the list of capabilities that different vendor solutions offer.

After researching what is available in this type of software, you need to identify areas where your business can benefit. An open discussion with managers and department heads about where the problems lie provides important insights that will help you determine the requirements of the software. You can use evaluation tools to map the function of your business to help you decide on system requirements. You can also revisit your monthly, quarterly, and annual goals to get an insight into how well your company is performing and what capabilities you need from the software you want to purchase to increase your company’s performance and overall performance.

Candidate solution evaluation

You may still be missing important features that you may need to run your business You can find a general and comprehensive list of features and functions that ERP systems offer. Some companies will provide RFP templates for customers to use. Request for Proposal (RFP) template The lists will feature the type of ERP system you are interested in purchasing. Having these templates will bring you one step closer to identifying all the business requirements of the ERP system you are looking to purchase.

RFP tools provide a great way to get specific information about a product from a vendor. Once you have an RFP template that lists all the possible features and functions of an ERP system, you can review and modify it according to your business needs. You can then invite software vendors from whom you are interested in purchasing an ERP solution and describe the support they provide for completing the RFP and the features listed in your RFP and which are important for running your business. So, vendors need to provide feedback that is tailored to your company’s unique needs. Once you have all the complete RFPs from vendors, you need a short list of solutions (two or three) that may be a way to best suit your business.

Consider the cost

The price range for ERP software systems varies greatly. There are different price models to consider. Small businesses usually do not have much overhead for the IT department and may consider choosing a cloud-based solution without having to install on-premises. So choosing a cloud-based subscription may be a more viable option for a small business rather than promising substantial costs associated with an individual license.

These lightweight models also come with less training and documentation. This is why it is important to consider training in cost and make sure you have what you need to move forward.

As always true of business valuation, you must consider the return on investment (ROI) of candidate ERP software as you determine which features will best serve your business. When calculating the actual cost of a particular system, it is important to include soft costs, such as the potential downtime associated with training, which can take weeks or more, depending on the complexity of the system you purchase.

Other factors that contribute to the overall value of the software include the cost of configuration and customization to adapt the software to your specific business needs, the time and effort required to implement the software, and the use of dedicated resources to ensure that the new software is readily accepted. By users.

Select your ERP system

Once you’ve listed all your needs and cost factors, you’re ready to consider all your software options and come to a conclusion. You can then use a decision support system (DSS) to reach your final decision. This business tool helps you prioritize the personal criteria and requirements that are important to your organization, to evaluate effective solution options and to make a final decision. Where a spreadsheet works for a decision where there are less than 20 items in the list of criteria, this decision is likely to be based on hundreds of factors, which are in your RFP. Using a DSS lets you evaluate hundreds of criteria, prioritize your business, and evaluate vendor feedback so you can decide which ERP system is most appropriate for your business needs.

Once you have a short list of acceptable ERP software solutions in front of you based on your industry requirements and affordable range, it’s time to make a decision. As with any technology, friendly peers never bother to ask what they are using and how they will determine their level of satisfaction. Unfortunately, this option is not always possible. Additional neutral data is available on neutral industry and technology review sites.

Remember that neutral information is original. Try not to get bogged down in storytelling based on emotions and the tendency to omit critical information needed to make an educated decision. Although comparing apples to apples is not always easy, you have to try অথবা or you risk making a bad decision. In favor of analysts’ review of the company’s public relations comments about the system. For example, some companies have neutral and detailed software reviews written by expert analysts.

Ask short-listed vendors for a detailed display to narrow down your list of potential candidate solutions. One of the best ways to truly evaluate any system is to review the system with your own eyes during a hands-on demonstration.

But make sure you provide the seller with a demo script so they can demonstrate the capabilities that are important to your business processes – not just the capabilities that you absolutely cannot use. If you need help creating a demo script and distributing it to vendors, companies like TEC can help. Be sure to use the software to allow users from different sections to attend demo sessions and ask questions, take notes, and finally rate the demo. After viewing the exhibits for the software in your shortlist, it’s time to start eliminating systems that aren’t measured.

You can ask a short list of vendors to provide you with customer references, with which you can contact and ask the vendor about their software selection experience.


Before you commit to your new ERP system, it is important to find satisfactory answers to all your questions. What are the advantages and disadvantages of cloud versus on-premises ERP solutions? What are the benefits of cost justification? To answer such questions you need to conduct your research and see a product display. This important purchase has the potential to significantly affect business profitability. The above information can help guide your purchases, ensuring that your business’s ROI has increased as a result.

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