What are the criteria which need to be considered for the selection of an Enterprise Resource Planning (ERP) system?

Many decision makers have purchased such software only to find out later that it was not the right fit for their specific business. Although there is a myriad of information available to aid in the ERP Systems selection process, there are essential qualities essentially required: Functionality: This is the most important characteristic of an ERP system to research. In order to know what functions of selected system is required to possess, first need to ask what areas are of most important for a business. If the ERP software is optimized for larger companies and then that ERP is not suitable for are a small business. The buyer should look into a system that more represents specific needs of a small business. Common Platform with Wide Recognition: Choosing a commonly accepted cloud based ERP platform will ensure there is a high amount of products and support for those products available. Well recognized ERP solutions have plenty of resources available for support and implementation. The higher the number of companies using a particular ERP solution, the more likely the software is going to stay on the market for a while. Support and Stability: It is essential that the ERP software companies that is considered by a company come with a support guarantee, otherwise the business may leave vulnerable to hidden costs for necessary upgrades if the product chosen becomes obsolete. It is also important to consider how stable the software publisher is and whether they are likely to retain their position within the market, thereby continuing to provide the support that business requires. Costs and Fees: This includes not only the initial purchasing and implementation cost, but any on-going costs are likely to incur through the need for maintenance, upgrades, additional users, etc. While some systems may offer discounts at the time of purchase, business may face higher costs in the future, negatively affecting bottom line and ROI of the business. It also required to ensure that the software companies which are considered have a cap on their annual fees, including support and updates. Effective Data Usage: One of the distinct advantages of ERP systems is the ability to efficiently access and use of data. While most provide adequate transaction processing, it is equally important that the data can be easily accessible by decision makers. Timely and current information access ensures critical decisions can be made based upon the most recent data. Fast Adoption: The ERP system which has been selected, should be easy to adapt to for end users. It is crucial that those users become both familiar and comfortable with those functions and use. For example, because many of Microsoft Dynamics' key features resemble Microsoft Office functions, users are usually able to adapt to it quickly. Flexibility: Enterprise Resource Planning is a long-range investment. A flexible system will grow with the company, accommodating new specifications as they emerge. Flexibility is also crucial in the implementation phase, to ensure that the program can align with existing business needs and achieve integration.