Why Consider a New ERP system?

In their June, 2009 Midmarket ERP Solutions Buyer's Guide, Focus Research identifies three compelling reasons that companies are seeking ERP solutions:

  • Replacement of outdated systems
  • Specific industry challenges
  • Standardizing from many systems onto one

In the Buyer's Guide, they detail what companies should look for in a new system, the benefits it should bring to the business, and what to know before you purchase.

Functionality is primary. Companies often find that the search for an new ERP system is a good time to standardize process across the organization. In this way, they can more effectively align processes to a new system. Features of ERP systems can vary widely based on the vendor's history and expertise, so buyer's should dig deep during the evaluation process to be sure the system can help meet your business goals.

A system that fits well can bring many company-wide benefits, including reducing costs, improving service, and facilitating compliance. Other more granular user-level benefits can include more informed decision-making due to deployment of business intelligence applications, or more effective sales and service management using CRM tools. ERP packages vary widely; organizations must assess the benefits that each ERP system has brought to other companies and be sure that the system chosen offers measurable benefits to match expectations.

Total Cost of Ownership (TCO) is one of the top three factors considered when companies purchase ERP systems, according to Aberdeen Group studies; in a July, 2007 report, 52% of midsize companies name cost as their primary consideration. Pricing structures vary among vendors, but usually are based on modules purchased and user count. Costs include software, services, and ongoing maintenance.

Key questions to be asked when making a purchase decision include:

  • Do the organization's leaders support the project?
  • What specific problems should the new ERP system solve?
  • Will the system be able to adapt as your business changes and grows?

Find this interesting? Please Share!  

Download the complete white paper here. Questions? Contact Blytheco by email, or give us a call at 800.455.1368, extension 2500.