Selecting an ERP (Enterprise Resource Planning) system is a crucial decision that can affect many aspects of your business. With the range of options available, from bespoke to off-the-shelf solutions, how do you determine the best course of action? This article explores the factors you need to consider to make an informed choice.
Criteria influencing ERP choice
The choice of ERP depends on a number of criteria. The complexity of your operations, your industry sector, the size of your company and your specific objectives all play a role. A tailor-made solution offers extensive customization, which can be essential for companies with unique or innovative processes. Conversely, an existing solution may suffice for more generic, stable needs.
The 3 different types of ERP
ERP systems can be divided into several categories, each with its own specific features and ideal applications:
Vertical or specialized
These systems are designed to meet the specific needs of particular industries. For example, a vertical ERP for the healthcare sector might integrate functionalities dedicated to managing patient records, appointments and regulatory compliance. Similarly, an ERP for the manufacturing industry would include modules for production, inventory and supply chain management.
Examples: Genius ERP, JobBoss, Siteline, Epic
Horizontal or generalist
This type of ERP focuses on specific functions that may cut across various sectors. For example, an ERP specialized in human resources will offer advanced functionalities for managing recruitment, payroll, performance and employee development. Another example might be a financial ERP, which specializes in transaction management, accounting and auditing, applicable to almost any business, whatever the sector.
Examples: SAP, Zoho, Microsoft Dynamics, Odoo, Infor, Netsuite, Oracle
Tailor-made
A tailor-made ERP is developed to adapt perfectly to a company's unique and specific needs. For example, a company operating in a very specific niche, such as the manufacture of custom aeronautical parts, might require an ERP that manages not only the general aspects of production and inventory, but also specific details such as compliance with aviation safety standards and the management of complex R&D projects. Another example would be a global e-commerce company that needs to integrate ERP systems with e-commerce platforms, international shipping management systems and multilingual customer service processes.
Each ERP category offers distinct advantages, and the choice will depend on the complexity of the company's business processes, its specific requirements and its budget.
The maintainability of your ERP
Even the most robust, well-designed software can buckle under the weight of incessant modifications. It's crucial to anticipate maintenance challenges as your ecosystem grows in complexity and specific developments.
When integrating specific developments into a standard ERP, upward compatibility is not always guaranteed. Each update may require the whole system to be reassessed, or even major migrations to be undertaken.
However, opting for a tailor-made solution gives you greater control and reduces your dependence on regular updates and modifications imposed by existing solutions or your integrations with third-party services.
ERP implementation and redesign costs
The adoption of ERP can radically transform all operational areas of a company, representing a veritable organizational tour de force. Naturally, the scope and cost of such projects are proportional to the size of the company concerned.
The number of users is a crucial element, directly influencing the overall budget through the cost of licenses, especially if you opt for an existing solution.
However, specific development costs are an essential part of any ERP project, whether you opt for custom development or add personalized modules to an existing solution.
Maintenance costs must also be taken into account. While these costs are often included in existing ERP licenses, they need to be defined as part of a service agreement for a custom ERP.
In addition, it's crucial to budget for future business, technological and regulatory developments, such as privacy laws or accessibility standards, which could impact your system.
Planning these investments over a period of 3 to 5 years is recommended, as it enables you to anticipate future challenges and guarantee your company's technological continuity.
Finally, training and acculturation costs are often underestimated, but vital to ensure successful adoption of ERP by all users. These skills investments are critical to maximizing the return on investment of any new technology solution.
Change management and implementation
ERP implementation is a strategic pivot for any company. User commitment is essential. They are at the heart of success.
The scope of change management must match the potential impact of ERP. Involving teams from the earliest stages, during functional scoping, is a step towards adoption. But this is only the beginning. You need to support them, on an ongoing basis, until they have fully assimilated the tool.
Resistance to change? It varies. It depends on many factors. But here's the truth: software that precisely meets users' needs is much easier to adopt. The relevance of your future ERP's functionalities is therefore crucial to a successful transition to this new era.
Tailor-made ERP stands out for its unique ability to blend in with an organization's established processes. It adapts to existing workflows. Disruption is minimal. Resistance to change is significantly reduced.
For teams, adopting such a solution becomes almost a natural reflex. They see their own methods reflected in the new system, making the experience not only familiar but also reassuring. This synergy between current needs and ERP functionalities significantly increases the chances of successful implementation.
In this way, a tailor-made ERP system doesn't just implement itself; it integrates, synchronizes and optimizes. And in the end, it transforms an existing structure into a more efficient machine, smoothly and precisely.
Conclusion
The decision between a tailor-made ERP and an existing solution largely depends on your specific situation. If your company requires a highly customized solution to support its unique operations, investment in a custom ERP may be justified. For companies with more standard needs, a pre-existing solution may be sufficient. Think long-term, not just in terms of cost, but also in terms of flexibility, adaptability and future growth.
