Choosing the Right ERP for SME

There is a host of enterprise resource planning (ERP) solutions on the market today for small and medium-sized enterprises (SME), but they are not all the same. Some solutions excel in different areas, and the right ERP for small business depends on which aspects of the business are most in need of improvement in order for the company to reach its strategic goals.

What is ERP for SME?

ERP for SME are ERP solutions specifically designed for SMEs, differ in the features that are offered, the technology platform that they support and use, and the architecture on which they are constructed. Each of the leading SME ERP solutions has its own strengths and weaknesses. One may be designed to enable better human resources management while another is better at production planning or resource management. Choosing the right ERP for SME is a critical step for a company that can mean the difference between success and failure in today’s competitive global economy.

It’s easy to become confused about the ERP for SME capabilities if one only reads the marketing collateral of the various ERP vendors, many of which overstate the true value proposition of their products. Brochures and other product promotional material can be a valuable resource in determining the high-level functionality of a software solution, but they offer little hard data that can reveal which is the best ERP software for a company. Instead, the company should systematically investigate each potential ERP solution to determine which ERP for SME is the correct fit for its needs.

How to Choose the Right ERP for SME?

A good starting point for that investigation is to find out how each ERP package originated and then evolved in the market. Typically, an ERP solution initially focused on a specific industry or business need, and it is still, more than likely, the strongest solution for that application, and those features are probably still the point of the solution.

From that initial success, the solutions usually evolved and expanded to make it more functional for more industries and more applications. The result is that a number of ERP solutions are well-known in the industry for their excellence and strength in certain areas. But, it is also wrong to think that an ERP package originally developed for the manufacturing niche, for example, has not evolved to the point of where it is useful for other business sectors. Many ERP vendors offer a trial of their products, which can be very useful in determining the right solution for a company.

Once the final decision has been made to proceed with ERP system implementation, a business must form a selection team with members representing all users of the software, from top management to shop floor employees. The first order of business for the selection team will be to develop a set of criteria that will permit a close and thorough evaluation of all available solutions on an equal basis.

While it will be hard to find a ERP for SME that will fit all of a business’s processes, it is important to compare ERP solutions to find the best fit for your company.