This week on NVTC’s Blog, Business Development, Marketing & Sales Vice Chair Jenny Couch of member company Providge Consulting gives advice on investing in an ERP platform, one of the most critical decisions your business will make.


Investing in an ERP platform is one of the most critical decisions your business will make. Implementations can take years, and hundreds of thousands of dollars to complete. Critical business functions will likely be supported by this platform for many years to come. You’ll need to train, or hire resources who can support the platform. So it’s critical that you select a system that best fits your business’s needs. But, with so many options available on the market today, it can be challenging to narrow down the field and select the right ERP solution for your business.

By considering some of the factors below during your evaluation, you will increase the likelihood that you and your team will select the right ERP platform for your company.

  • Cloud or internal architecture ERP. The cloud is hot right now, but it may not be the right solution for you. Consider factors such as control, down-time, access, and customization needs when determining whether to select a cloud or internal architecture ERP system.
  • Company size. Some ERP applications are better suited to large companies, and some are a better fit for small to mid-sized companies. If available, review the companies currently using the platforms you are considering. Are those companies a similar size, or drastically larger or smaller? Look for platforms with companies that are a similar size to increase the likelihood that you’ll select a platform designed for your business.
  • In-house ERP skill sets. Review the ERP skill sets you already have on your team. Is the majority of your staff familiar with PeopleSoft, but never heard of Workday? Then you may want to consider the time and cost that can be saved in training by selecting a platform with which your team is already familiar.
  • Criticality of the back-office function. For some companies, any hiccup, no matter how small, within the back-office system is disastrous. If the ERP system will be a critical component of your business that cannot have downtime, then you may not want to rely on vendors to provide support when you experience issues or downtime. Look for platforms where your team has full control and maintains responsibility for resolving issues.
  • Number of system users. The higher the number of users requiring access to your ERP platform, the more important it is to have a user-friendly interface. Such a requirement can often increase costs, either by limiting the pool of available COTS products, or by increasing the need for ongoing changes to the platform to meet your users’ needs.
  • Customization and interface needs. Certain industries, such as higher education, or government/military users, often have unique requirements that “standard” companies lack. COTS systems are designed to meet the greatest number of companies’ needs, so if you have highly complex, or unique back-office processes, you will need to select an ERP platform that can support a large number of customizations. For companies, or agencies needing a large number of customizations, cloud-based ERP solutions may not suit those needs. Similarly, if you have a large number of external systems that will need to interface with the ERP platform, make sure to account for this need in your evaluation criteria as not all ERP platforms are structured to support a significant number of interfaces.
  • Exit Plans. While you may feel certain that you’ll stay on your chosen ERP platform for years, it’s important to have an exit strategy. Surprises happen all the time, and they aren’t always of the confetti-throwing, present-giving variety. A software vendor could go out of business. An implementation could turn disastrous. Unforeseen issues can be uncovered with the platform. It’s important to prepare for the unexpected by developing an exit strategy. If you chose a cloud-based ERP, how easily and quickly can move off of that product. What will happen to all of your data, including any archived data? Is there an option to have your data stored for a certain time frame after you’ve moved off the platform? What data extraction and migration tools are available?  Can your data easily be moved to another platform?
  • Data privacy rules and regulations. While not a concern for many companies, for companies operating globally, this could be a critical consideration. Certain countries require that all employee data be hosted locally within that particular country. While some vendors, including cloud-based ones, have developed a solution to address this issue, some vendors are still playing catch-up.

Not sure how to select an ERP system that will meet your organization’s needs? Contact us and we’ll help narrow the overwhelming field of options, and select a system that best fits your business’s needs.

 


Jenny Couch

This post was written by Jenny Couch. Couch is a project management consultant, and Providge’s Business Development Manager. She loves efficiency, to-do lists, and delivering projects on-time and on-budget.

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