In the age of complicated business models and complex workflows, choosing the right ERP system has become so critical that entire business growth relies on this vital decision.
The right decision can facilitate the growth of business, double up revenue, and unify business processes, along with eliminating complexities. Whereas a wrongly chosen ERP solution can complicate the business with a huge amount of financial loss that can be used for business expansion.
Based on the market research performed by Finances Online, manufacturing industries are the top ERP users, accounting for 33% of the market, followed by IT industries with 15% and financial services with 14%.
There can be various factors that lead to making the right decision about choosing the perfect ERP system. However, almost all parameters depend on business requirements and their futuristic goals.
Before learning the major factors that you should consider before choosing the right ERP system in 2024, let's understand those points that influence businesses to move from a legacy system to an ERP solution.
Top Influential Reasons to Move from Legacy System to an ERP Solution
Decision makers and CIOs consider numerous factors that lead them to move from an existing legacy solution to an updated ERP solution. Besides business growth, establishing a single source of communication and operating business from different locations are core factors that push a business to adapt the latest technology as an ERP solution.
- Need Better Features
Better features of an ERP solution enable a business to gain more visibility, streamline different processes at once, and scale the business on the go.
- Automation Capabilities
Automation capabilities enhance business efficiency and productivity by eliminating errors and redundancies from the existing system.
- The First System of the New Business
New businesses implement their new ERP system to streamline processes and focus on growing business rather than managing different processes altogether.
- Improve Efficiency
A perfectly implemented ERP solution centralises the entire business along with the data of different processes to enhance the efficiency of users.
- Replace the Outdated System with Advanced Solution
Businesses working with outdated systems are on the verge of business loss, errors, and financial losses that can be eliminated with an advanced ERP solution based on business requirements.
- Eliminate Multiple Systems with a Single Solution
Businesses with complex business processes tend to use multiple systems to manage their businesses, resulting in cumbersome workflows, complicated processes, departmental errors, and data mismanagement. With a perfect ERP solution, all such issues can be resolved in one go.
- Better Reporting Features
Accurate data reporting enables a business to make actionable decisions based on captured data, which leads to substantial business growth.
- Improve Data Accuracy
Legacy systems come with the chance of incorrect data due to numerous errors. A cloud-based ERP solution eliminates the chances of data inaccuracy and offers 99.9% correct data throughout the process.
- Better Customer Support
The outdated system hinders the business in resolving customer queries, offers consistent support, and performs cross-sell and up-sell activities.
- Accept Regulatory Compliance
Businesses must accept the regulatory compliances of different territories to perform business operations as per changing government norms. An advanced ERP solution can easily align with the changing rules and regulations to adhere to the business's new policies.
- Reduce Costs
The legacy system consists of different costs that include maintenance costs, high implementation costs, exclusive licencing costs, frequent downtime, outdated security, and more. With a cloud-based ERP solution, all such costs can be largely reduced.
See Also: Best ERP System of 2024
Top Factors you Should Consider Before Choosing an ERP System in 2024
We are going through a technological advancement in businesses that are comprised of complex processes and workflows while offering smooth customer service. Without an advanced and aligned ERP solution, winning in such fierce competition and tackling unique challenges is almost impossible.
We have accepted the fact that businesses are transforming and accepting technologies to cope with modern challenges, achieve goals, and embrace scalability. This lets businesses choose the perfect blend of necessary tools in an ERP system to grow, generate revenue, and push business towards expandability.
Below are some of the top factors that a business must consider before choosing an ERP system:
- Cloud-based Deployment
Cloud technology is the future, as it is cost-effective, highly secured, faster to deploy, and comes with data protection in any scenario. You must choose an ERP solution that comes with a cloud or hybrid deployment option so that you can avail yourself of the endless benefits of cloud deployment.
- Scalability Enabled
You never know when your ERP system requires extra resources to process all requirements or perform core business operations without any performance lag. So, choose an ERP solution that can be actively scaled as per requirements to execute all business demands without any issue.
- Accepts Customisation
Modern businesses run on various unique processes that require a unique set of tools to execute. A perfect ERP solution must come with customisation capabilities so that you can add or remove the required tools to perform smooth business transitions.
- Seamless Integration
Integration with other business solutions is a must to maintain flexibility and enhance ERP capabilities. Also, the integration must be seamless so that businesses can add or remove them as per requirements without any data loss or unnecessary hassle.
- Comes with Big Data Analytics
Go with an ERP solution that comes with big data analytics capabilities to help you analyse and filter out the useful data that can be utilised for business growth. It will let you utilise useful insights to streamline supply chain data and real-time inventory.
- Lower Cost of Ownership
Traditional businesses have to invest their financial resources for various reasons to maintain the smooth running of the business and its operations. You need to choose an ERP solution that comes with minimised after-implementation costs. Such expenditures include change management, training, maintenance, support, upgrades, updates, and no hidden costs.
- Simple Licencing
The days have gone for perpetual licensing. Now, it’s time to pay for user-based subscription licencing that is way cheaper and comes with full access to the ERP solution. So, choose a solution with simple licencing plans. You can start with the lowest plan and upgrade it when required.
- Interactive User Experience
Choose an ERP solution with an interactive user experience so that you can understand and utilise all tools and capabilities without any issue.
How can Dynamics Square help you choose the right ERP solution?
Choosing the right ERP solution can open the gateway to endless growth opportunities that can lead your business towards a consistent source of revenue with minimal effort. With 12+ years of experience, we have been helping small, medium, and large businesses choose the right ERP solution, regardless of the industry. Our 500+ global clients praise us for the support and help we offer them whenever required. They trust us with our services, which helped them achieve goals and meet scalability targets.
If you are also struggling to choose a perfect ERP solution capable of strengthening your business in all directions, feel free to write us an email at email@example.com , or you can call us directly at +44 207 193 2502 to get instant support.