Five Factors to Consider When Choosing an SME ERP Solution for Your Business
Traditionally, ERP (Enterprise Resources Planning) was the domain of large companies and for a while, it was not really considered viable for small or medium enterprises to invest in a comprehensive ERP system. Over the last decade, ERP solutions have evolved and can now be applied to just about any business environment, with great results for small and medium businesses as well. Often, companies start out small, with software that manages to deal with the business information but, over time, and as these businesses grow, they outgrow small business software and need a more effective way to manage business information. While the company may still be small, there is a bigger need to manage the business better, and therefore time to invest in the right SME ERP solution for your business.
The question is what to look for. Which system will be best? Which factors should influence your decision? The answer to this is to consult a professional consultant. But, if you would like to educate yourself about SME ERP, we provide some useful information here:
- Flexibility: As a company grows, it may have to manage business assets of a more diverse nature. It may have to exercise tighter control and do better analysis of information. Often, new divisions are formed and information becomes separated into different parts, which means that a more effective system is needed to manage a diverse array of information types and formats. Flexibility is key here, and the SME ERP solution has to be able to keep up with changes over time and provide you with the answers you need.
- System Storage: Business owners used to be suspicious of cloud-based systems, but over the last few years, cloud solutions have proven to be very secure and easy to manage. The type of storage you choose will depend on the features you need in your SME ERP solution. Local installations will generally cost more for implementation, but overall maintenance costs may be lower. Cloud-based systems are cheaper initially, but maintenance costs may be higher. There are other factors involved as well when it comes to this choice, and a good ERP professional will be able to factor all of these considerations into your choice.
- Customisation: Competition is rife and technology evolves, forcing everybody to move and adapt at breakneck speed to keep up. Sometimes, new or small companies fall into niche categories with specialist needs, and an off-the-shelf solution may not be able to fulfil the needs of the business. The specific needs have to be taken into consideration and the SME ERP solution should be able to be customised to meet the needs of that particular environment, as well as being able to deal with future business requirements. Sometimes, keeping up with a particular business environment can be like trying to hit a moving target, and your ERP has to be able to adapt with your business. This usually means that the system you choose has to be built specifically for your business and allow for in-house customisation.
- Reports: One of the best and most useful features of any ERP solution is accurate reporting. However, this depends on how the system is queried. If you do not ask the right questions, you simply cannot get the right answers. The reporting needs of the business have to be evaluated carefully and you have to be sure about the specific analytics and information required before you will be able to draw the right reports. Also keep future trends in mind, and opt for a system that can generate customised reports if you need it.
- Integration: When it comes to your SME ERP solution, it is vital that you consider the future of the business. Are you planning to grow the business significantly? Remember that an ERP solution is only effective if it helps to ease the process, and not when it complicates it. This means that you have to factor in current software you use for crucial processes in the business and ensure that your ERP solution is able to integrate with these existing systems and software.
If you are keen to learn more about the right SME ERP solution for your business, and how choosing the right solution can help you to manage your business better, give our team at Lupus Consulting a call. We have all the expertise you need.