Top Reasons for Choosing a New ERP System

With a new year upon us, many organizations take this opportunity to make changes and improvements.  Big or small, changes are almost always a good thing and can lead to positive outcomes and new horizons.  One huge change a company can make is choosing a new ERP (Enterprise Resource Planning) system. Why do organizations make the decision to look for a new ERP system, and how do you know if this is the right time for your company to make a switch?

An Enterprise Resource Planning (ERP) system can play a huge role in the success of a business, and in some cases the impact of the ERP system can literally make or break the business. An effective ERP system encompasses all of the various processes that are essential to running a business, including inventory and order management, accounting, human resources, customer relationship management (CRM), and beyond. At its most basic level, ERP software integrates these various functions into one complete system to streamline processes and information across the entire organization.¹ Therefore, choosing an ERP system is not a decision that any organization takes lightly. 

Whether you are using a software package specifically designed and billed as an ERP system or a collection of spreadsheets, databases, and other tracking or communication systems, your business is most likely already utilizing some type of ERP system. And, there will eventually come a time when your organization realizes this ERP system needs to be updated or replaced.  This realization occurs gradually and can sometimes be challenging to identify.  So how do you know when it’s time to choose a new ERP system?  Below we discuss the top three reasons a company may decide it is time for a new ERP system, including some key indicators to help you determine whether or not these reasons currently apply to your organization.

Your Current ERP System Lacks Functionality

A functional ERP system will help your business flourish by allowing employees to complete tasks more efficiently and effectively than they could without an ERP system.  Business units should be able to communicate and interact without barriers and with confidence that shared data is accurate.  If you find that your ERP system is not functioning on this level, it may be time for a change.  Essentially when you discover your employees have to work for your ERP system rather than finding your ERP system works for your employees, it is certainly time to begin the new ERP system selection process. 

Key Indicators

• Employees develop numerous “work-arounds” for your current ERP system
• Your current ERP system limits company growth and agility
• Information is difficult to obtain and data must be verified for validity
• Business processes must be adapted to work with the ERP system

The above text is a portion of a white paper created by The Vested Group.  If you would like to continue reading this white paper, please click on the following link to download a PDF Top 3 Reasons for Choosing a New ERP System.