ERP Systems – Business Needs & Requirements

In this section we look at your needs:

  • What are the drivers behind the ERP decision
  • What previous ERP experience you have

There are often a number of drivers behind ERP decisions. The most important are Business drivers that come from business units; then there are Technical drivers that come from IT. Your current investments in IT systems also need to be considered.

The Business drivers can include:

  • Increase revenue
  • Improve profits
  • You need to acquire more customers
  • You need to retain and grow current customers
  • You need to improve cross-sell results

Technical drivers can include:

  • Integration with other business software such as CRM or older ERP, Financial, HR, and Supply Chain systems
  • You are carrying out a wholesale change to the way you operate your IT infrastructure
  • You buy another company and need to integrate them into your ERP
  • You move from a centralised IT structure to a decentralised one

You will notice that ERP Guidebooks and its content is mainly business driven. Even some of the Technical drivers have significant business drivers at their core.

Our objective is to give you independent advice on your options and its up to the vendors to convince you why their technical vision is better than another company’s.

New System or Replacement

What is your experience with an ERP system? If you have never had a ERP system installed then look at the section in ERP Guidebooks on choosing the right solution and vendor. Both have downloads to help you look into and define your requirements. In simple terms you need to

  • look at what you do today
  • honestly judge whether have:
    • good processes in place today (that you want to automate)
    • limited processes or structure
    • or bad processes in place ( that the ERP will ‘fix’ if you implement well)

If you are replacing an aged ERP system then you need to consider why it is being replaced? Is it a system that is not viable for the long term because it won’t grow with your business or have you lost confidence in it?

Similarly, if the solution did not work as well as you expected – what were the reasons – were they in the solution or were they due to commitment from your firm?

Guidebook – Choosing a Solution

Guidebook – Choosing a Vendor

ERP Systems – Size of your Business

There are a number of ways we can help you on this site. This section looks at the Size of your Business and choosing the right size of solution and scope of solution. You should read it in association with “Simple ERP”. The size of your business is an important input into understanding the best solution.

There are systems designed for large companies and there are solutions designed for small business. For example, a system such as a Cloud ERP is designed for either a small business or a department in a larger company. These are designed and built ‘from the ground up’ to handle small to large numbers of users.

On the other hand, some ERP systems are designed specifically for large business. The overhead of these systems is such that it would be uneconomical to use in a small business.

For example, a small Business would not use a SAP Business Suite ERP but could consider Microsoft Dynamics. Vendors such such as SAP have different products such as Business One with functionality to fit into these small business segments. So make sure that you are buying the ‘right-sized’ application for today and future needs.