ERP selection can be a complicated process. While the why of an ERP system is fairly clear - it is the platform that unifies all functional areas of a company into one cohesive whole - determining how to select an ERP system can be a murkier issue. It is essential that organizations dedicate considerable resources to the planning and selection process to avoid the costs and disruptions that come with a failed implementation. In this article, we will discuss five key criteria that should be considered before deciding upon an ERP system.

When selecting an ERP system, it is crucial to consider its scalability and flexibility. Your current list of requirements and needs should not be the sole guiding factor in your decision-making process. Instead, you must think about the future growth and potential changes your business may experience. A good ERP system should be able to scale with your business as it grows. You do not want to invest in a system that you will outgrow in just a few years. The flexibility of the ERP system is vital, as it should be able to adapt to changing business needs and integrate emerging technologies seamlessly. If a system has excessive limitations on customization, it may not be the right choice. You want an ERP system that acts as a platform for growth, enabling you to future-proof your business.

In today's bring-your-own-device (BYOD) workplace, mobile functionality has become increasingly important. Your ERP system should support mobile users, allowing them to access workflows and data from their personal mobile devices. This level of flexibility boosts productivity by enabling employees to work wherever and whenever they see fit.
Imagine a salesperson who cannot access key customer data while on the road and is tied to a desktop. This limitation can hinder their effectiveness and impact customer relationships. To avoid such scenarios, it is crucial to select an ERP solution with a mobile-friendly dashboard that can be accessed from anywhere at any time. This feature ensures that employees can easily access important workflows and data, reducing downtime and improving efficiency.

When considering an ERP system, customer recommendations and testimonials play a significant role. A reputable ERP software vendor should be able to provide references from satisfied customers who have undergone the implementation process. Speaking with these customers will give you insights into the vendor's collaborative experience and their overall technical and business acumen. The success of an ERP implementation relies on not just the software itself but also the implementation team's communication and expertise. Inadequate communication during the implementation process often leads to unmet expectations. Therefore, it is essential to build a strong relationship with the ERP vendor, based on trust and collaboration. This collaborative approach ensures that both parties understand the unique needs of the business and work together to achieve success.

A good ERP system should provide a customizable user experience. Each functional area of the business will work with different types of data, and the ERP system should present the most relevant information to each user. Additionally, for international companies, the system should be able to present region-specific data and units of measurement for all locales. The user experience should be simple and accessible, enabling employees to access the right information at the right time. If an ERP system requires clunky workarounds to localize and contextualize data, it may not be the best choice. Look for a system that offers a great, customizable user experience out of the box, saving time and effort in customization.

While upfront costs are often the focus when selecting an ERP system, it is essential to consider the long-term costs of ownership. This includes factors such as long-term implementation costs and the ability of the ERP system and vendor to adapt to your evolving business processes. Your ERP system should be able to mirror your future-state business processes, allowing for seamless integration as your processes evolve. By choosing an ERP system that can grow and evolve with your business, you ensure that it remains a valuable asset in the long run. Total cost of ownership (TCO) should be carefully evaluated to make an informed decision.

Selecting the right ERP system is a critical decision that should not be taken lightly. By considering the five key criteria discussed above - platform scalability and flexibility, mobile access, customer recommendations and collaborative experience, ease of use and contextualization, and long-term costs and future-proofing - you can make a more informed decision. An ERP system should be a platform for growth and help you work smarter, improving efficiency and visibility across your business processes. With careful planning and consideration, you can select an ERP system that aligns with your organization's goals and leads to long-term success.