With hundreds of different Advanced ERP Systems out there, it can be challenging to understand which system works perfectly for your business. Different levels, target markets, and feature sets can make the selection process insurmountable – and difficult to know where to start.
The strange part is that this variety is good for you because there are systems that are ideal for your business.
Determine why there is a requirement for ERP Solutions?
The first step in understanding an ERP system’s requirement is figuring out crucial factors to integrating an ERP for your business. Before looking for the different ERPs and their features, costs, deployment methods, and other important factors take a step back and find out why you need an Advanced ERP Systems.
The most common answer to that question is growth. If you want to grow your business and stay competitive, you need a robust and comprehensive software system to help you manage all aspects of the business.
But you have to dig deeper.
While it is true that many companies still use Excel as their de facto Advanced ERP Systems, if you decide to become one of these companies, you need to know that you will lose significant business to competitors switching to such better solutions.
Any real good ERP (not Excel) will help you increase efficiency and reduce costs – ERP connects and streamlines all crucial elements of your business into a single database, simplifying your tasks and processes and sharing accurate information across the company. But to find the ERP that’s best for your business, you need to think about the company goals and needs.
Build a Business Case Why You Need an ERP
A great way to determine why your company needs an Advanced ERP Systems is to create a business rationale for the new ERP system. When generating a business requirement, be sure to define how the ERP system will help you achieve your business goals. Your business requirement document must have the answer to these questions.
- Will ERP improve employee and operational efficiency?
- Is it going to eliminate ERP silos and integrate different systems?
- Will ERP enable real-time data to enable better management decisions?
- Will ERP improve your business processes from offering to money?
- Will ERP improve customer experience?
And the biggest question of all:
Will the new ERP system help meet long-term business goals and increase profits?
Its not wise to invest in ERP software because you see everyone around you doing it. Take good time to find out how it will improve your day-to-day operations and help you meet your long-term goals.
The next step is to understand those specific issues your manufacturing business faces and address them. Sit down with a confident small group in your company and ask them what we need to improve to be a better company?
A good expression to understand this is, “We need to increase ______ to ______.” Maybe you need to increase your profitability by lowering your raw material costs. You may need to reduce errors by clarifying the procedure. It’s not an easy step, and it takes a lot of effort and work to see exactly where your business needs improvement, but once you have it, you can almost guarantee that you’ll find the Advanced ERP Systems that’s right for you.
The most common vulnerabilities that organizations seek to address are:
- Employee Productivity
- Information delay
- Reduce errors
- Blindspot during operation
- Evaluation process improvement
- Profit margin standardization
- Inventory tracking
- Knowledge transfer
- Full margin monitoring
- Measurable growth
Only after you understand what your company ultimately needs to improve your business can you start looking for an ERP solution with the right features for you. Instead of being distracted by the bells and whistles that won’t run your business, you can focus on the right features that will benefit your business.
The team at Katalyst is always available to provide end-to-end assistance for your business. Contact us at sales@katalysttech.com.
