Assessing The Importance Of ERP Software In A Business

Before planning a solid implementation of ERP software into core processes, every business needs to assess its specific business needs honestly. While there are good reasons for most companies to choose ERP software, the final decision is based on an objective assessment of immediate business needs and timelines. Companies must ask themselves these preliminary questions when spending money on ERP to ensure rationality in the decision-making process.

Here is a guide to assessing the need for ERP in a company.

Business Process Assessment

Before the final implementation is considered, a thorough evaluation of all critical business processes must be carried out. The first thing to evaluate is the processes that are going well and those that need improvement. The following questions can make companies stick to the idea of  ERP.

  • Is there a process that is beyond the capabilities of current commercial software?
  • Does it reduce employee productivity?
  • Do all business participants have direct and easy access to company data from partners and suppliers to employees and managers?
  • Is a late submission a barrier to all decisions?
  • Is the current accounting system not working?

Evaluating these issues is undoubtedly necessary to identify inconveniences and problems in the business process.

Choice Of ERP Software Selection Criteria

However, purchasing ERP software in Australia is an investment with numerous benefits. Thus, the price will never be a selection criterion for ERP software; instead, there should be other criteria, including the cost of ownership of the software, features, ease of use, flexibility, training, and support, proximity, implementation, server, or running on an operating system. Recognizing the priority of each criterion will help companies better determine which ERP solution is right for them.

A Short List Of Some Of The Best Solutions

After obtaining information about the business and its software requirements, it is necessary to conduct a detailed assessment of each software considered and how it meets the needs of the business. It is highly recommended that you list the pros and cons of each supported software. It will help businesses narrow down their options and select only the best solutions.

Proceed To Showcase The Best Solutions

Before deciding on the right solution, companies should familiarize themselves with using the solution with demos. Demos tailored to business functions give a clearer picture of an ERP solution, making it easier for owners to choose the most appropriate solution. Proper demonstrations of a few selected ERP solutions help them learn about software glitches, bugs, and usability or navigation issues.


Once the entire assessment has been done, from writing the business requirements to carefully examining each ERP software, it’s time to decide and choose the software that works best for you. While implementing ERP certainly comes with some upfront costs, it is also a matter of life and death to choose the right solution to make the business more efficient and productive.

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