What to consider when choosing an ERP system
Think first, choose later
When choosing an ERP system, it pays to think first. If you ask the right questions beforehand, you'll get a solution that really makes your job easier. Here are some important things to consider.
An ERP system can do a lot to help you and your business take big new steps forward. It allows you to work more efficiently, saving you time that you can use more productively. It helps you make the right decisions, reduce unnecessary procedures and costs, provide better customer value, enable new ways of working and work more sustainably.
The important thing when buying an ERP system is to really understand what it is, what it can do for you and how to get the most out of it. That's why we've put together some key points to keep in mind when choosing an ERP system.
Start with yourself and not with the business system
An ERP system is a big investment and the best way to really get the most out of it is to start with your needs. Many ERP systems can be customized to meet your most important needs. That's when you really get a solution that allows you to work smarter and more successfully. Make a list of your needs and the problems you want the system to solve, for example:
- Which processes take a lot of time and resources and should be automated?
- Where are the bottlenecks and what are the challenges?
- What information is important and how can you use it to be more successful?
- Which features are absolutely essential and which can be compromised?
A carefully compiled requirements specification is a bit like a shopping list for the grocery store; it ensures that you come home with the goods you actually need and not unnecessary items that you found tempting on the shelf.
Involve users
If anyone really knows where there is potential for improvement in the business, it is the users. They know exactly where the best efficiencies can be made, what the problems are and what the best solution is. With their insights into the requirements specification, it is possible to adapt the solution to the real needs, with the bonus that the implementation itself will go more smoothly. Change can be a bumpy process, but if everyone has been involved and sees the benefit of the new, it will be much easier.
Get a clear picture of costs and benefits
Acquiring an ERP system is a bit like buying a car, you pay for the product itself but there are also running costs over its lifetime. As far as the running costs of an ERP system are concerned, they look a little different depending on which solution you choose. For example, a fixed installation needs operation and maintenance, while a cloud solution is usually a subscription where everything is included. What are the costs of training users? Or to expand with more users and new features? Take a longer-term view of your investment to avoid unexpected costs down the road.
Look also at the long-term benefits. The ERP will streamline your business and save you a lot of time, but that's not all; it can also provide you with better data and analysis for wiser and more profitable decisions. Using the solution to switch to e-invoices saves a lot of time, material and postage (a cost saving of at least 10 SEK per customer invoice sent electronically according to the e-business network). In addition, e-invoices are more accurate and reduce the hassle of late fees, debt collection and tied-up capital. The ERP system can also help you provide better customer service, leading to loyal and more willing customers. In the long run, the solution can have a much better ROI than you first thought.
Is a cloud solution for you?
Traditionally, ERP systems have been fixed solutions where the vendor installs and deploys the system, and then the company takes over the responsibility and operation of it. But more recently, cloud solutions have become more widespread. They mean that you don't need to have an in-house installation - instead, the data and functions are in the cloud, where everything is operated and updated by the supplier.
The advantages of a cloud solution are that it is easier to customize and scale the solution. You can quickly add or reduce functions and users. Because cloud solutions typically have a web-based interface, the ERP system can be accessed from anywhere via any device. The solution is always up to date, protected and automatically backed up, making it secure. A cloud solution is also usually a subscription, where you only pay for what you need and have better control over costs.
How can the system be integrated with other solutions?
The real benefit of an ERP system comes when you can really get all processes and data under one roof. If you have other systems that you really like and want to continue working with, such as an accounting program, how can you integrate it with the ERP system? You can save even more time and work even more sustainably if it is possible to integrate your existing solutions with your new system.
Another thing to consider is how complicated it is to import data from older solutions. Is it a simple process to export data or does it need to be converted first?
What does the future look like?
As I'm sure we've all noticed, things move fast. It seems that new technologies, new opportunities, new attitudes and behaviors can come and go overnight. This is important to keep in mind when choosing a future-proof solution. It should be easy to adapt, update and expand. Ask yourself questions like:
- How will your business develop in the future? Will you start with e-commerce? Work in an agile way with more freelancers and consultants in project form? Expand internationally? You will grow and develop and therefore need an ERP system that can grow with you.
- What support do you need from your supplier? It's not just an IT solution you're investing in, but a whole new way of working. How much support and training will the new solution require, both during implementation and in the long term? What are the support contracts and what kind of support will you need?
- What kind of relationship should you have with your supplier? Is it enough to get a competent installation and training, or should you enter into a long-term partnership where your supplier not only provides what you ask for, but is also an insightful partner who sees new opportunities you might not notice yourself and finds solutions to problems you didn't even know you had?
The time you spend asking the right questions and choosing the right solution will pay off many times over when you actually get an ERP system that leads to major time savings, new opportunities and a flexible way of working. That's how you get a system that brings you success.