A wide selection of ERP (Enterprise Resource Planning) solutions is available on today’s market; both Croatian and foreign ones, those of more and less quality, those that cost more or less, both more and less complicated…  Possible differences are numerous.

But if we summarize the choices, one obvious thing is most important – whether the solution is the appropriate one for you or not. How to choose?

ERP stands for Enterprise Resource Planning, which can be described as an integrated business planning information system. The integration aspect should be noted in particular. Business information integration is the key component to ERP solutions. Integration means managing all business events and records in a single software solution, which enables all employees to have access to important information at the right time, according to their tasks and duties. This kind of an integrated business approach brings the most benefits to companies, provided that the selected solution was optimal. Let’s use an example: a customer order in a company that uses several business programs. It often happens that the paper containing order details spends time „traveling“ from the sales department to the warehouse, with more departments in between, while being recorded in different software throughout all departments within the company, which means all status changes and details are recorded separately. Meanwhile, no one can tell with certainty what the status of the order is and when it might be delivered. The sales department know it send the purchase order, but not if the goods arrived at the warehouse. The warehouse knows whether they have the goods or need to order it, but don’t know if the order was paid for. The finances know whether the order was paid for, but have no idea what the order status is. This kind of a disconnected business process is certainly reflected in our client’s satisfaction level.

When a company decides on an ERP system, their wishes and visions usually go like this: a unified business software for use in all company departments – from finances to the warehouse, from human resources to the administration, while having relevant information at just the right time and preserving resources needed for certain business processes.

When it comes to negotiations with ERP software solution specialists, all of them will use the aforementioned to their advantage, often pointing out examples of sucessful implementations in similar companies. This should actually not be the crucial criteria for the right choice, the fact that a certain ERP solution is used in similar companies. Every business organization is unique and even in similar companies, business processes are different than their competitor’s. The key criteria should be a realistic need for the company and the total cost of implementation, which can vary greatly. It also needs to be said that during the life cycle of an implemented ERP system, unexpected costs also need to be taken into account – costs of subsequent adjustments when the company expands into new business ventures, introduces new services etc.

So how do we choose the optimal ERP solution?

• Set the criteria according to priorities.

Remember that every ERP solution has its positives and negatives. That’s why certain solutions are more suitable for retail companies where the ability to react quickly to customer inquires is important;  on the other hand, manufacturing companies care more about planning production.  Work to understand what your priorities are, categorize them and write them down.

• Take advantage of others’ experience.

ERP solution implementation isn’t always succesful. Sadly, there is a number of companies whose total cost of implementation was rather high, resulting also in business difficulties and inflexibility in business procedures. Responsibility is usually mutual. Don’t be persuaded by promises. An unsuccesful implementation often follows you around for a long time, both business-wise and finances-wise.

• Talk to independent specialists.

Talk to independent consultants before you choose, so they can warn you of possible difficulties. Experiences coming directly from people who successfully implemented ERP solutions in companies of different profiles, can help you with negotations, choosing the right solution and also bringing the total costs down.

• Stay informed about the possibilities of ERP systems.

Implementing ERP systems can be compared to building a house.

First, you check whether you’ve acquired all required permits for a house of certain sizes, meaning checking if you have the resources needed for implementation of the chosen ERP solution.

Choosing the ERP solution itself is often like choosing the right foundation for your house. If the foundation is strong enough, you can eventually build extra floors; likewise, the right ERP solution will be able to follow the growth of the company.

When building a house, can you replace windows if you realize they’re unsuitable; during implementation of an ERP system, can you adapt or change business processes if you notice the need for it?

Does your contractor guarantee results and in what way; does your ERP implementator provide suitable customer support and under which conditions?

Is it worth it to invest more money in better insulation and get that money back through less power consumption; is it worth it to spend more time adapting an ERP solution to your specific needs, in order to spend less time needed for your employees to acquaint themselves with the new system?

Countless parallels can be drawn, but the important part to remember is that a project is completed successfully only once it can be fully used according to our needs.

That’s why SP sistemi has decided to not favor one specific ERP solution, which is often the case with ERP implementators. We favor client needs and determine which ERP model is best for them. This approach guarantees success of the project, because our employees have an experience of many successful ERP implementation, in companies of different sizes and profiles.

If you’re looking for a business software solution (ERP, CRM) and want to reduce the risk of a wrong choice, subsequent hidden costs, costly or unsuccessful implementations, don’t hesitate to contact us.

Business software, ERP solutions in particular, are the foundation of your business. Make it the best possible.