# How to Navigate the ERP Purchase Decision-Making Process
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-03-15
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Choosing the Right ERP Solution: Critical Success Factors
Meta Description: Ensure operational efficiency and growth by selecting a customised ERP system. Discover 6 critical success factors for choosing the right software.
URL: https://financedigest.com/how-to-navigate-the-erp-purchase-decision-making-processhtml

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**Monzer Tohme,** regional vice president, sales, Middle East & Africa, Epicor Software

When purchasing a strategic software solution such as a new enterprise resource planning (ERP) solution, making the right decision is vital. Many organisations wrongly assume that when it comes to ERP, the old adage of ‘one-size-fits-all’ holds true. This couldn’t be further from the truth, particularly for enterprises operating in the [manufacturing and services sectors](https://www.financedigest.com/expansion-in-manufacturing-sector-has-increased-demand-for-industrial-cooling-system-market.html "Expansion In Manufacturing Sector Has Increased Demand For Industrial Cooling System Market"), where an ERP system that is customised to meet the organisations’ specific business requirements, is vital to operational efficiency and ultimately growth.

Below are six [critical success](https://www.financedigest.com/five-critical-tips-to-create-a-successful-start-up.html "Five Critical Tips To Create A Successful Start-up") factors to help ensure that you choose the ERP solution that is right for _**your**_ business requirements.

Assess functionality needs–Start by evaluating the [business challenges and individual pain points that you need to address and determine the business value your organisation needs to extract from the software](https://www.financedigest.com/how-to-choose-the-right-software-architecture-for-your-business.html "How to choose the right software architecture for your business"). What problems should it solve, or what [opportunities should it create for your business](https://www.financedigest.com/thoracic-drainage-devices-market-rising-new-business-opportunities-for-investors.html "Thoracic Drainage Devices Market Rising New Business Opportunities for Investors")? For a CEO, you might be focusing on growing revenue from existing customers, attracting new customers, or supporting your [move to a new market](https://www.financedigest.com/these-days-tik-tokers-can-move-markets-more-than-investment-analysts.html "These days Tik-Tokers can move markets more than investment analysts…"). For a COO or factory floor manager, you might be challenged with improving throughput on the factory floor, reducing inventory levels, or coordinating [supply and demand to prevent](https://www.financedigest.com/the-dental-preventive-supplies-market-to-grow-on-a-savored-innovative-note.html "The Dental Preventive Supplies Market To Grow On A Savored Innovative Note") stock shortages. At a very early stage of your decision-making process, you will want to compile a list of cross-functional requirements to use to reach out to [software vendors that have solutions](https://www.financedigest.com/healthcare-software-solutions-to-ride-the-pneumatic-compression-therapy-market.html "Healthcare Software Solutions to ride the Pneumatic Compression Therapy Market") that match these requirements.

If replacing legacy software, keep in mind [future business](https://www.financedigest.com/title-homeopathic-veterinary-medicines-market-growing-at-a-cagr-of-5-business-and-future-opportunity-2031.html "Title: Homeopathic Veterinary Medicines Market Growing at a CAGR of ~5% | Business and Future Opportunity – 2031") goals, rather than simply writing a list of the shortcomings of your old software. Where do you want to be in 3-5 years? What does your ERP solution need to support in the future? These questions are vital. In the past few years, manufacturers have undergone a significant transformation to address [market challenges](https://www.financedigest.com/extracorporeal-co2-removal-market-in-depth-analysis-by-trends-opportunities-drivers-challenges-and-growth-factors-by-2026.html "Extracorporeal CO2 Removal Market: In-Depth Analysis by Trends, Opportunities, Drivers, Challenges and Growth Factors by 2026"). For many, this has meant moving from a very standard ‘make-to-order’, ‘make-to-stock’, or ‘engineer-to-order’ manufacturing model, to a “mixed mode” model which can [put added pressure](https://www.financedigest.com/analysis-war-in-ukraine-puts-pressure-on-east-european-banks-to-prop-up-sinking-currencies.html "Analysis-War in Ukraine puts pressure on East European banks to prop up sinking currencies") on ERP solutions. Another key question to ask is: how do you want to deploy the solution? Legacy systems are traditionally on-premises solutions. Today however, you have a choice in deployment including traditional on-premises, hosted, “true cloud”, or [hybrid options](https://www.financedigest.com/mg-motor-launches-plug-in-hybrid-option-in-mexico-as-ev-race-heats-up.html "MG Motor launches plug-in hybrid option in Mexico as EV race heats up").

**Have an open dialogue with [software](https://www.financedigest.com/volkswagen-to-discuss-new-software-roadmap-on-dec-15-handelsblatt.html "Volkswagen to discuss new software roadmap on Dec. 15 -Handelsblatt") vendors** –The opening stages of making any software decision should involve an open and honest discussion with the software vendor about your organisation’s business ambitions. This is where vendors show their strengths as a true partner–suggesting the options that will best accommodate the company’s overall [business strategy](https://www.financedigest.com/fx-hedging-strategies-to-protect-your-business.html "FX hedging strategies to protect your business").

Understand the end game, not just cost of ownership–New software requires a considerable [business investment](https://www.financedigest.com/esg-investment-making-your-business-a-more-sustainable-place.html "ESG investment: Making your business a more sustainable place"), however, it’s important to measure ROI, not just cost. Consider the up-front purchase budget alongside other key considerations such as the benefits the organisation can expect to gain from that software, as well as the long term maintenance costs.

Today’s next-generation enterprise [software solutions](https://www.financedigest.com/healthcare-software-solutions-to-ride-the-immunohematology-market.html "Healthcare Software Solutions to ride the Immunohematology Market"), for example, have the ability to save businesses valuable time by reducing the amount of administrative tasks that employees have to complete, automating processes and streamlining workflows. This results in a more agile business, that is more responsive and competitive.

**Assess ability to support the new software–** Be sure to understand the capabilities of your company’s IT department. Will the team need help throughout the entire implementation process and beyond, or will they just need a training session before managing the deployment themselves.

Many software vendors include support and upgrades in their sales package, but make sure the vendor is prepared to provide the level of [service needed](https://www.financedigest.com/financial-services-need-a-digital-transformation.html "Financial services need a digital transformation"). Having this information and working with a vendor that understands the needs of the organisation will help when deciding what software/support bundle is best suited for your company.

Research the software vendor–It is vital that [companies check](https://www.financedigest.com/eu-plans-for-company-human-rights-environment-checks-face-new-hurdle.html "EU plans for company human rights, environment checks face new hurdle") credentials and do the necessary research to make sure they work with a software vendor that cares about the business requirements, not just about where the next sale is coming from.

Reputable software vendors will consult with the [company on different options available and offer](https://www.financedigest.com/passendo-partners-with-leading-media-company-audienzz-to-revolutionise-its-ad-offer-in-a-portfolio-of-over-70-premium-newsletters.html "Passendo partners with leading media company, audienzz, to revolutionise its ad offer in a portfolio of over 70 premium newsletters") honest opinions on how to use technology to improve the business. This is especially important when purchasing an ERP solution, which is a whole package, not just one small element of a business’s technology.

Also, you can’t predict the direction your [future growth](https://www.financedigest.com/liquid-smoke-market-growth-future-prospects-and-competitive-analysis-2022-to-2032.html "Liquid Smoke Market Growth, Future Prospects And Competitive Analysis 2022 to 2032") will take, so having a partner that is agile and committed to innovation, is invaluable.

**ERP solution features**–An ERP solution should solve problems, not create them, so it is critical to ensure that the solution you choose has the following features:

_Industry-specific_–An ERP solution that works well for a manufacturer of plastics might not necessarily be right for a retail outlet. Make sure that the solution you choose has been built to cater to the needs of your specific industry and has the [track record](https://www.financedigest.com/norway-on-track-for-record-gas-export-will-be-ready-for-winter-gassco-ceo.html "Norway on track for record gas export, will be ready for winter -Gassco CEO") to prove it

Scalability–An ERP system built on scalable architecture will help you [manage](https://www.financedigest.com/bowel-management-systems-market-demand-and-competitive-analysis-by-leading-manufacturers.html "Bowel Management Systems Market Demand and Competitive Analysis by Leading Manufacturers") growth—and the fewer customisations a system requires to meet your specific needs, the better
Functionality–An ERP [system must have the capabilities to do everything that your business strategy demands](https://www.financedigest.com/dental-delivery-system-market-is-booming-worldwide-by-2027-growth-share-demand-and-analysis-forecasts.html "Dental Delivery System Market is Booming Worldwide by 2027 | Growth, Share, Demand and Analysis Forecasts") of it. It should be fast, reliable and easy to integrate with your other systems
_Deployment options_–On-premises, private-cloud, public-cloud or hybrid deployment options—combined with mobile access for your employees—ensures that your organisation will remain flexible and responsive

Ease of implementation–If you have problems at this stage, it can have a lasting [impact on your ERP system’s performance—and your profit](https://www.financedigest.com/oil-rebounds-on-profit-taking-as-market-shrugs-off-virus-impact.html "Oil rebounds on profit-taking as market shrugs off virus impact"). Look for a solution that is easy to implement with all the customisations you need
_Ease of use_–Nobody wants to go through a difficult and unfriendly learning process. An ERP [system with an intuitive user interface will increase employee satisfaction and productivity](https://www.financedigest.com/sales-growth-of-automotive-clear-vision-systems-market-is-driven-by-production-of-new-vehicle.html "Sales Growth Of Automotive Clear Vision Systems Market Is Driven By Production Of New Vehicle")

Choosing any new software, but particularly an ERP solution, is a complex task and can also be a confusing experience. That being said, selected carefully, an ERP system can serve as the backbone of your business—it can improve visibility and transparency across departments, streamline operations, speed up time to market, support [change management](https://www.financedigest.com/ma-integration-challenges-cultural-alignment-and-change-management.html "M&A Integration Challenges: Cultural Alignment and Change Management") initiatives and aid decision making—and give your enterprises the competitive advantage it needs to grow.


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