The Oakley ERP Blog

Valuing ERP – the selection dilemma of cost vs. functionality
Wednesday October 9, 2013

Enterprise Resource Planning (ERP) is a big step up for an organisation and without doing your research may be a confusing experience. Cost can often be the first place to look but according to industry research this can be a big mistake to make.

 

After your business has gone through the challenging times of being a business start-up to an established business, you are going to take your first steps into the world of ERP. ERP provides a far greater insight into your business performance and increases your capabilities, so naturally it is going to require a greater strain on resources initially.

 

This can often lead you to question which ERP solution is going to be the cheapest to my business. However as the Aberdeen Group’s Industry report highlights those top performing “Best-in-Class midmarket organizations place a greater emphasis on two other factors —functionality and usability—when selecting an ERP solution” (Nick Castellina, Aberdeen Group).

 

The organisations achieving the greatest value from their ERP solution are 52% more likely than others to select ERP based on functionality. Essentially these organisations look at the features that enable the company to run more effectively. Best-in-class midmarket organisations are 30% more likely to choose an ERP solution on its usability. Staff can be trained on how to use the ERP technology by your business partner, but the key here is how intuitive and user friendly is the ERP system to your needs. It is interesting to see the remaining organisations are more likely to focus on the total cost of the solution itself.

 

More Than An Accounting System

An important factor to take into account when you are weighing up the cost of ERP, is the significant difference between the accounting software and the ERP solution. If an accounting system helps you account for your business today, an ERP system helps you account for your businesses future. An ERP solution contains powerful tools that help shape the company’s position, ability to function and overall outlook.

 

For example Sage 200 and Sage 300 ERP include Sage CRM. This is much more than the address of your customers. It includes the whole prospecting and sales strategy and the all important ongoing support which requires the involvement of sales and customer service.

 

Furthermore Sage Business Intelligence provides a detailed drill down into your overall finances and provides Key Performance Indicators into the shape of your business – for a detailed analysis of how your company is performing today and vital business projections for your company’s future.

 

Further information on ERP Implementation Projects can be found in our article Managing ERP Implementation projects to deliver increased ROI

Written by David Weaver at 00:00

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