5 Steps for Selecting the Right ERP System for Your Business

How can companies best figure out their needs for a new ERP? They can start by identifying where teams lose time, duplicate work, lack reliable data, or struggle to report accurately. Then, they can compare those current challenges with future growth plans, compliance needs, and the business functions that need better visibility or automation.

Leaders can ask questions about the following areas to reveal pain points in their organization.

• Financial reporting. How will we gain reliable financial reporting that is both accurate and timely?
• Analytics and data. How much visibility will we have in terms of sales, production, and procurement processes?
• Automation. What process automations are needed? Can we use the software to automate job costing, sales orders, and supply chain management? What other processes would be advantageous to automate?
• User experience. How intuitive will the software be? How will it affect the productivity of our employees? What is the direct cost benefit to the organization?
• Mobile accessibility. How accessible will the software be for mobile users who need real-time access in the field? Which users will need mobile accessibility?

Decision-makers can also consider the places in the organization that need to be updated, such as finance, sales, or operations, and then take a moment to determine what they don’t know. If teams rely on disconnected systems, manual spreadsheets, duplicative data entry, or delayed reporting, those issues can be signs the business needs an ERP system. An ERP can help centralize information, reduce manual work, and support faster decision-making across departments.

Leaders should also encourage ownership and get buy-in from key stakeholders and influencers by appointing an internal sponsor from each area that might be affected by an ERP investment.

Departments to consider include:

• Accounting
• Inventory
• Order management
• Human resources
• Sales

Internal sponsors should be aligned with big-picture business goals, favor digital innovation, and be willing to be held accountable for adoption within their departments. Internal sponsors also can help clarify the factors to consider when choosing an ERP system, including department-specific workflows, reporting needs, training requirements, integration points, and the level of change each team can realistically support. Considering the needs of teams can take time early in the process, but in the long term, it can actually save time as well as resources and frustration.

There’s no shortage of ERP software options, and it can be overwhelming trying to focus on the top two or three. What factors should be considered when selecting the right ERP system? Businesses should evaluate industry fit, scalability, reporting capabilities, automation, integrations, customization needs, mobile access, user experience, implementation support, and long-term vendor reliability. The right ERP system should support today’s operations while giving the business room to grow.

Following are areas for leaders to consider when narrowing the field.

• Industry experience. What ERP vendors are widely used in our industry? What degree of expertise do they have specific to our industry?
• Customizations and applications. Does the ERP platform allow for the development of additional applications so we can customize it for our specific organizational needs?
• Flexibility. How flexible do we need the ERP software to be now and in the future? What degree of customization is needed to work in our industry?
• Reporting. How will the ERP software support industry-specific compliance requirements and reporting?

Among the various available ERP systems, NetSuite ERP is an ideal solution for many businesses. It is cloud-based software that streamlines and automates business operations for better efficiency. Instead of relying on several different applications for business departments and functions, everything can be managed in one place. The results are cost savings, better and faster decision-making, and the capacity to grow without having to slow down while upgrading technology.

Once leaders have narrowed the field to the top two or three vendors, the next step is to secure a vendor that provides an effective and efficient implementation process with continuing support. While many vendors offer a quick launch time frame, it’s important to consider all phases of the implementation process, from pre-launch to post-launch and ongoing support.

Some important factors to consider when selecting an ERP vendor include:

• Industry acumen. What level of industry insight will be provided? Does the vendor have a deep bench of industry specialists who understand the specific needs and goals of our business?
• Customization abilities. What level of customization will be provided? Will the ERP vendor have the knowledge to customize and add applications to meet our organizational needs, or will it be a cookie-cutter experience?
• Implementation know-how. What is the launch time frame? Is that time frame more about hitting a date or providing world-class service?
• Training offerings. What pre- and post-launch training is offered? What additional resources will be provided to help our employees enjoy a smooth user experience?
• Support services. What does ongoing support and collaboration look like? Will it be the same consistent team who knows our organization, nuances, and history?

When choosing an ERP system, the vendor relationship matters as much as the software itself. A strong ERP vendor should understand the industry, guide implementation, help teams adopt the system, and provide ongoing support as business needs change.

Once leaders have done due diligence to prioritize their company’s needs, determined who in the organization will help, and identified which systems and vendors are best to meet business goals, then it’s time to decide.

However, there are more key questions to consider, including:

• Is the vendor and its solution reputable?
• What level of experience does the ERP vendor have?
• Will the vendor be able to anticipate problems before they happen?
• How long has the vendor supported the selected ERP system?
• Are there client testimonials from peers or competitors that attest to the vendor’s success?
• Are there case studies on the selected ERP solution we can use to better understand its real-world applications?

Knowing how to choose the right ERP system often comes down to fit, confidence, and long-term value. The selected ERP should address the company’s current needs, support future growth, improve business efficiency, and be backed by a vendor with the experience to help the implementation succeed.

Selecting the right ERP system lays the groundwork, but there are many more decisions to come as you pursue the implementation. Whether you’re trying to determine if your business needs an ERP system, identify factors to consider when choosing an ERP system, or understand how ERP systems improve business efficiency, our ERP specialists can help you evaluate your options and move forward with confidence.

Reach out to our team today.

This article was originally published on June 26, 2023, and was reviewed and updated.