How to Evaluate ERP Systems and its Functionality?

If you’re looking for a guide that helps you to find how to evaluate the ERP system and its functionality than this article is for you. Read this article till the end,  and you have the idea of how to evaluate the ERP system and its functionality. 

There are several ERP experts out there, but the truth is no one can understand your business more than you. The functionality integrated with the ERP system needs to be adjusting your business requirements and meet with your business present and future goals. 

The main goal for ERP is to organize and manage your business in a way that clearly defined which steps need to take and what changes require for business success. An ERP system can organize your sales, employee details, work process, future projects, etc. 

While developing an ERP plan you have to thinks of several factors and function which you might want to add in the system. You have to sit with your co-worker and department heads to evaluate ERP system function. Once Blueprint is ready, it’s time to take action on the functionality of the system. You should only add those features which your business needs.

Here are the five crucial factors your ERP selection committee must include :

1) Module Integration

An ERP system interfaces with other systems such as barcoding machines, attendance system, main server, etc. to maintain functioning. Moreover, all integrated modules within an ERP must interface with each other as well with cloud deployments to maintain seamless functioning.

2) Technical Support

An ERP implementation is a long-form process and throughout the process, it requires high skill technical supports. It’s crucial that your vendor must provide technical supports staff in the form of an online portal, email, live help desk, or in-person staff.

3) Vendor credibility

it’s crucial to check for your vendor credibility such as their experience, portfolio, skill level, etc to make sure that you the right partner for your ERP implementation. Look for your business partner’s business background and credentials. Moreover, ERP should be their core business and not an appendage. If you have the right vendor than they know your requirements, additionally, they give you a suggestion which features needs to include.

4) Financial Risk

ERP implementation requires not just an initial license but also training and implementation cost. Once your product is ready you need to train your staff to work with an ERP system. The cost of their training and other activity adds extra expense to the production budget. Additionally, ask your partner if they charge you for usage or by user count.


5) Functionality

Typically, ERP vendors claim that their system is a one-stop for organization solutions by offering functionality that almost included all departments and their processes. However, it’s critical to evaluate how well an ERP system’s functionality meets with your business or organization needs. For Ex. if your organization needs high-performing CRM in your ERP, but you implement an accounting ERP that claims to have CRM features than it won’t add any value to your business.

3 Steps to evaluating ERP software functionality

1) Define Necessities

Your ERP implementation journey should start with introspection. The first question you should ask is why you even need an ERP system? Does your organization need an ERP system in the first place? What features you need in an ERP system? How an ERP system can help your business? Does an ERP system meet with your present and future goals?

Get your company leaders and keys employees on board to provide their input on what they need from an ERP system to do their jobs done better and start making a wish list. All of these necessities will bring you a pretty good idea of why an ERP solution is best for your organization or business.

2) Prioritize functional needs

An ERP system should includes all the basic functions, and requires functionality that enhances your business productivity, drive efficiency, and help you be more competitive in the marketplace. Use your wish list to create a flow chart of your functions and analyze the connection between the functions.

Once you have done this task; make a list of prioritizing functions –

–         Essential needs

–         Strong but flexible needs

–         Bonus features

–         Projects future needs

–         Other important functionality

Give this list to the vendor and tell them to implement the ERP system in a way that matches this list. Once you have a decent idea of your basic functions, your ERP system is good to go in the right way.

3) Evaluate your options

Once you’ve identified your needs, now it’s time to start looking for a vendor that closely matches your list. Keep in mind that you’ve to find a vendor that provides strengths ERP solutions and that align with your high-priority needs.

Avoid trying to change your business goals and basic functions to meet with software requirements. The ERP environment constantly changing and evaluation of the software vendor is as crucial as the evaluation of the functionality.  It’s crucial to analyze vendors as a business, not as an organization that is selling ERP system. Your team needs to analyze a vendor in order to meet your business needs.

Choosing the right ERP system and the vendor is long term process and requires a lot of commitment, but it’s worth the wait when you have a highly functional ERP system. Look for vendor customer support, their software upgrades, ongoing maintenance, etc

Final Verdict

Implementing an ERP system for the business is a cruel task when you have small businesses or organizations. It requires expense and time to evaluate the right ERP system.  Additionally, an ERP system needs to be fully functional and fully integrate with your organization’s requirements and need.

If you need an ERP system for your business or organization, we build a custom ERP solution that meets your business needs. With our highly skilled team and years of experience, we are able to deliver a highly functional ERP system that integrates with all the important functions of your business.

For more details, get in touch with our team.  

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