ERPs are a bit like cars - they all have an engine, four wheels, and range from cheap to really expensive! But it takes the right make and model to ‘fit’ your needs and your style. Plus, you wouldn’t choose a Formula One race car for your daily commutes, and you probably wouldn’t pick a compact car if you want to tow the boat.
ERPs are a bit like cars - they all have an engine, four wheels, and range from cheap to really expensive! But it takes the right make and model to ‘fit’ your needs and your style. Plus, you wouldn’t choose a Formula One race car for your daily commutes, and you probably wouldn’t pick a compact car if you want to tow the boat.
Car analogies aside – finding an ERP with the right fit for your organisation is an important decision, as the system will likely be with you for the next 10 years or more! On top of that, new ERP projects are a big ask for your organisation, so it pays to find a local ERP partner with experience in your industry to help make it less of a burden on your business.
Fusion5 is a business solutions partner, so rather than just telling you which ERP is going to be the best, we work with you to understand your business, goals, frustrations, and challenges to find the right solution together.
With over 20 years’ experience delivering ERP and total business solutions for over 1,000 Aussie and Kiwi businesses, we’ve found there are three key areas to consider when searching for an ERP: Features, Functionality, and Fit. Let’s take a look at why they’re so important, and what they mean for selecting a new ERP.
Features
When you look at an ERP, the Features are the modules that come with the solution and are designed to help you with a particular part of your business’s operations.
The great thing about a modular design is that you can add or remove modules as you need them, to meet the shifting needs of your organisation. This allows you to concentrate on growing your business, without the hassle of replacing your entire system as your requirements evolve, ultimately saving you time and money.
Most ERPs include finance and reporting modules as part of their core package, and then you can seamlessly add-on modules to streamline other aspects of your business operations - much like how Microsoft Dynamics 365 Finance works.
On the other hand, ERPs like NetSuite and Microsoft Dynamics 365 Business Central offer an all-in-one solution. These ERPs come bundled with a wide range of modules, catering to many common business functions.
Some organisations may also require industry-specific modules, for example: a manufacturing company would require order management, planning and scheduling, and supply chain modules. On the other hand, a retailer might require in-store POS, CRM, and ecommerce modules.
Here are a few common features/modules:
- Sales Management
- Supply Chain Management
- Inventory Management
- Manufacturing
- Customer Relationship Management
- Human Resource Management
- Timesheets and Payroll
- Accounting & Finance
- Procurement
As you consider an ERP, think about which features are going to be the highest priority for your implementation – and what other modules you might want to consider later down the line.
Functionality
Actions and activities – that’s what Functionality means. While Features cover the different modules or parts of your business that might need support, Functionality solves the individual challenges that your business might face.
Let’s say that your team deals with a lot of repetitive task, like payroll, invoicing, order processing, and reporting. Rather than allocating more time and resources to these tasks, ERP can automate them and free up your people to focus on more strategic and value-add activities such as problem solving, building customer relationships, and getting better use of their insights.
Here are some common functions that you might consider for your ERP implementation:
- Integration (ensuring the numerous capabilities of an ERP work together seamlessly)
- Automation of manual/repetitive tasks
- Business intelligence and data analysis
- Reporting (to easily communicate the insights from the analysis)
- Tracking and visibility of the supply chain for early identification of delays or issues
- Mobility (for secure access away from the office)
These might be the sticking points that you want to address in your business to free up your people for less menial work. So, what’s currently getting in the way, and how would you like your work to look in the future?
Fit
Arguably the most important part of choosing an ERP is Fit, because it’s about meeting your strategic business objectives and understanding current and future goals. However, not all ERP systems are created equal. Some are designed for specific industries or business sizes, while others offer a wider range of features and functionality.
A ‘right-fit’ ERP enables your business to move forward strategically. The successful implementation of the right ERP results in growth and expansion, lets you retire outdated (and potentially risky!) business systems, improves productivity and efficiency, and streamlines financial management.
Learn more about choosing the right ERP by downloading our free ‘right-fit’ comparison guide< for three industry-leading ERPs.
Rather than a list of qualities, Fit is best determined by considering a range of questions, such as:
- What other applications and technologies do you use, and how well will these integrate with a new ERP?
- Are we looking for a point solution to fix a squeaky wheel, or are we investing in ERP as part of strategic digital transformation?
- Can we spare someone from within the business to manage the project, or do we need a partner to help?
- Do we have an organisational change management protocol in place for this project?
- Have all departments contributed to the requirements for a new ERP, and do they understand how it will affect them?
- If you’re part of a multi-entity organisation, what are the other entities using?
- Are you part of a supply chain and need your suppliers and vendors to have access to data in your ERP?
- How technologically savvy is your mobile workforce?
- Do you have a disaster recovery plan, and if so, how will a new ERP fit into it?
Naturally, there are no wrong answers! Instead, it’s more about your organisation’s strategic goals long-term, and how an ERP is going to fit with your operational and cultural ways of working – and may even include what software systems you already use!
An experienced ERP partner like Fusion5, can help you through this process to find an ERP that fits with your organisation’s unique requirements and nuances.
Consider asking yourself these questions when right sizing an ERP for your business:
- What are the licensing and implementation costs? No point looking at systems that are outside of your budget.
- Can it meet your current AND projected future requirements?
- Does it need development, ISVs, or extensions to meet these requirements?
- And how extensible is the ERP – can it be easily personalised, customised, modified to cater for your unique business requirements?
- What is the user experience like. Is it intuitive and easy to use. How many ‘clicks’ does it take?
- Can you easily extract data and write reports yourself?
- Can you manage it independently before calling on the vendor to help you?
How do you know which ERP to choose?
As we’ve said, virtually any ERP will do the job – provided you’ve got enough time and budget to throw at it! But finding one that fits with your unique organisation? That’s a bigger challenge – but one that’s incredibly rewarding when answered well.
Your investment in a new ERP represents a huge commitment in terms of time, effort, and money. So, it’s critical that you make the right decision when choosing the solution – and to have the right partners on board.
If you’d like to talk more about Functionality, Features, and Fit then talk to us at Fusion5 to discover which ERP will help your business grow today and in the future.
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