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5 Things To Consider Before Setting Up An ERP Software For Businesses

By Richard Nguyen Published September 28, 2021 Updated February 1, 2023
erp system

ERP software has gained popularity among different businesses for a long period of time due to the numerous benefits that it can provide. According to netsuite.com, 49% of companies said that they improved all business processes after ERP implementation. The demand for ERP software nowadays is even bigger, with 50% of companies expecting to acquire, upgrade or update ERP systems soon. By 2025, the ERP industry is predicted to be worth more than $49.5 billion dollars, indicating that it will continue to grow at a high pace. Looking at those numbers, you may think that it is time to acquire an ERP system to support your business. However, choosing the right ERP software and efficiently implementing it is not that simple. This article will suggest the top 5 things to consider before setting up ERP software for businesses.

Business insight

business insight

It’s critical to analyze your company’s actual needs before deploying an ERP system. What do you hope to get out of the implementation? What issues are you facing? There are so many ERP software solutions available in the market. Each piece of software has its own collection of features and specialties, and each can excel at serving a certain function for you. ERP solutions exist for specific industries from pharma and food to manufacturing and fashion; learn more about Inecta’s ERP solution. It’s a good idea to start by making a detailed list of your requirements before browsing for software. You must take the time to consider and assess each choice before deciding on one that best meets your requirements. Besides, in order to adapt to the new system, many of your current processes will need to change. Your company must be willing to adapt its culture and processes to new ways at all levels, rather than striving to adapt the system to fit the old ways—this includes modifying existing processes that are working effectively.

Integration

system

ERP is most useful as a central system of your business when it can communicate or be ready for integration with other systems or software like POS, eCommerce, Accounting,…Therefore, if your company is currently using any software or devices, you need to note those necessary integrations and take them into consideration when implementing ERP software. The applied ERP software should be able to integrate well with those existing devices and software. In cases that you are new retailers, you can find an ERP software that acts as an all-in-one solution with all integrations such as Magestore’s integration, Ebizmarts, ConnectPOS,… which don’t need to integrate with third-parties systems and help you save many costs.

Scalability

scale

ERP is the heart of your business operation with significant investment, so the system will almost certainly be with you for a long time. Obviously, your company isn’t going to stand still, and your backend system shouldn’t either. Any solution you choose should be versatile and flexible enough to adjust with your business’s expansion. Therefore, before setting up, you should think about your company’s future plan. The way you implement the ERP system should reflect a wide variety of possible futures and be able to scale with your company.

Set up Costs

cost

There are 2 main types of ERP systems in the market: Cloud ERP and On-premise ERP. Each type has a different pricing model. However, on-premise ERP will cost more since you will need to pay one-time for the license and build a server infrastructure to implement it. The fact is that 62.7% of businesses go with cloud ERP systems over on-premise software because its subscription price model is more suitable and cost-saving. In addition, the number of users who can access the system also affects the cost. The more users you have, the higher cost you have to pay. If you have so many employees, you can choose some ERP software that offers unlimited users to save costs. In addition, training costs for staff to use the system efficiently also need to be taken into consideration before setting up a plan for the ERP system.

Customer Support

customer support

It is obvious that you’ll need support from a partner, whether it’s your vendor or a third party, no matter how much knowledge you have on ERP deployment and optimization. Otherwise, you are at risk of adopting a system with wonderful features and capabilities that you never get around to properly configuring and using. The ideal ERP solution partner will assist you in maximizing your internal resources, evolving your business systems and procedures, and implementing your new ERP system. Try to get as much support as possible when you set up the software.

Conclusion

In general, there are numerous factors to consider before implementing ERP software for your organization, since they may have an impact on future performance. However, several key factors should not be neglected, such as examining your company’s needs, budget, current processes, and future plans. We hope that by reading this post, you will be able to actively develop a plan before moving forward with ERP implementation.

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Contents
Business insight
Integration
Scalability
Set up Costs
Customer Support
Conclusion

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