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Top 5 Questions You Should Be Asking About ERP Implementation

Before starting to use any ERP Implementation every business must answer these 5 questions.

All large firms and many smaller ones use enterprise resource planning (ERP) software. ERP implementation however is complex and frequently perplexing for firms that are approaching it for the first time. It’s not as complex as rocket science but understanding and implementing ERP in your business is going to be messy and difficult and an SAP consulting service provider can help you to smoothen the process and make it easy for you to use ERP.

Here are the Fundamentals of ERP explained in Five Questions

1. What is ERP?

Depending on the objectives and requirements of the organization, ERP assists in managing, integrating, and organizing all data and business activities, including ordering, production, finance, procurement, human resources, distribution, and supply chain. When properly integrated, the programme analyzes, standardizes, and streamlines data as a unified platform.

Due to the price of software, implementation, and computer systems, traditional ERP often requires a substantial investment. Deployment can take a while as well because it needs to be customized for different business sector needs and change management. This profile works well for larger companies with complicated, high-volume industries.

Due to the fact that the system is housed on the safe infrastructure of an outside service provider, cloud ERP makes ERP more accessible to SMEs. Businesses have browser-based access to data and functionality without having to invest in hardware, which is ideal for the modern hybrid workplace.

Cloud installations can be implemented faster than conventional solutions and are easier to use without sacrificing key functionality. In most instances, they provide the same fully functional, internationally accessible ERP solutions as their on-premise counterparts. A cloud-based ERP project may have a higher chance of success than a traditional large ERP project due to simpler, quicker deployment and less requirement for customization.

2. Who Should Use ERP?

Cloud-based ERP is advantageous for virtually every business that handles sales and accounting for its goods and services, along with managing people, processes, products, or services. ERP is an integrated software platform that manages all of these fundamental tasks with configurations tailored to particular industries to address issues unique to your company.

When a company has more than 10 workers and at least $1 million in yearly revenue, it should start to think about using a cloud-based ERP system. This is an option for medium-sized and even large businesses as opposed to implementing standard ERP systems, which are expensive, rigid, and frequently plagued by unsuccessful ERP Solutions.

3. Why Do Businesses Need ERP and How Do They Justify The Investment?

You can get away with having different platforms for your accounting, inventory, and sales ordering if your company is really tiny and has few employees. However, it’s time to switch to ERP when your company has to grow, add employees, conduct more transactions, and connect with external suppliers.

ERP eliminates duplicate processes and inaccuracies that result from entering the same data into many software systems, providing a single source of truth for data. By providing the real-time data required for decision-making, automated procedures in ERP promote efficiency, boost production, and lower the cost of overstock. You can use ERP to produce the forecasts required to stay one step ahead of your rivals.

ERP system prices will vary based on a number of criteria, including the size of the business, the platform, and implementation partners chosen, the level of customization, training and change management expenditures, and others. Due to the fact that each system is specifically designed for the firm utilizing it, there is no one magic number.

4. Is ERP Secure and does it support compliance?

Cloud ERP vendors employ rigorous operational and infrastructure security controls to safeguard the underlying network, servers, and apps while limiting access to confidential company information. Business data stored in a cloud ERP is almost always safer than data stored in self-managed on-premise solutions.

Additionally, cloud ERP can be set up to accommodate compliance laws, including financial rules, data protection rules like GDPR, and FDA guidelines for life sciences corporate compliance. For backend operations, businesses in regulated industries commonly employ cloud ERP solutions. Therefore, you may rest assured that your company can as well.

5. Which ERP vendors should be considered?

The majority of ERP solutions will satisfy a business’s demands. The level of support a vendor can offer, whether there are solutions specifically designed for the company’s industry, and the availability of a partner network of support providers who can aid in the implementation, integration, and long-term support of the software all play a role in choosing the best vendor solution for a business.

In most cases, organizations won’t make a mistake if they pick one of the top three ERP providers: SAP, Netsuite, or Oracle.

Because it is the largest ERP provider and provides a variety of software solutions based on the size of the organization that can be upgraded as a company expands, SAP in particular merits consideration. SAP offers SAP Business One and SAP Business ByDesign for rapidly expanding early-stage and mid-market firms that are utilizing ERP for the first time.


SAP users can learn a lot about SAP and ERP and why they are doing what they are doing by asking the above 5 questions about ERP. And SAP consulting services can help businesses understand and align their values with the implementation of ERP in their business.

4 Jan, 2023

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