Anchor has been working with ERP systems and their implementation for the last 15 years and we sometimes jokingly wonder if there is any good ERP system out there.

In our experience, it always takes the right configuration, good add-ons, well-thought-out integrations and well-executed change management to get a functioning business support system up and running. In this article, we will give our view of how it works. We will also tell you how to find the system that best supports your business.

The basis for a successful choice and implementation of an ERP system

There are several important parameters to consider when choosing a business system. Anchor recommends that you do a Quick Assessment where processes, information and IT landscape are mapped. This forms a basis for requirements and analysis. It may also be a good idea to conduct a regular procurement with Proof of Concept. Invite the suppliers to come and conduct a demonstration of each system so that you can see how it would look and work for you. I recommend that you first identify the systems that are popular in your industry and evaluate them.

Important to evaluate in choosing an ERP system are:

• System functionalities (modules such as sales support, manufacturing, warehouse, finance, HR and reporting)
• Technical platform of the system (on premise, Cloud, private Cloud)
• Ease of use of the system for the organization
• The system's ability to integrate with your systems and those of your partners
• Use of the system in the industry
• Total cost of the system (implementation and operation)
• The future roadmap of the system (how it will evolve in the coming years)
• Reputation and resources of the supplier to provide support
• Supplier presence in the markets where you operate
• Implementer's industry knowledge and implementation approach
• Customer satisfaction with the provider, system and implementer

Business systems in the cloud or not?

Most companies today choose business systems that are either already in the cloud or can be migrated to the cloud. This is because the cloud offers greater flexibility, scalability and cost efficiency in most cases.

The ERP should be established in your industry

You will hopefully have the same ERP system for a long time and then it is valuable that other customers in the same industry demand that it is developed further. Some things may even have ready-made solutions if there are others in the same industry who already use the system. Similarly, you will need long-term support with everything from configuration, development, testing, operation and perhaps even outsourcing of certain processes and then it is a strength if it is a system that many people know so that there is expertise available.

• The ERP system should have a broad base of users in the industry in which you operate.
• It should have many partners who can provide support for the ERP.

The business system will not be better than the implementer

The implementer also plays a major role in getting the system to work the way you want. Often, the implementer has a certain industry that they have done many assignments in. It is worth taking references here to check that they have the right skills to help you. For the supplier and implementer, you need to review which local markets they cover. The best implementers often have a waiting period so you may need to plan well in advance for a system change. How much of the operation should you do yourself and how much should you outsource? If the system is to be operated by others, ensure already in the analysis phase that those parties have sufficient local staff and expertise.

The strategy influences the choice of business system

Think about how you want to organize your IT strategy. Should you have a broad business system that covers all functional areas (sales, HR, inventory, purchasing, invoicing, finance) or should you have several systems that integrate? Have you already made technology or architecture choices (such as on premise, cloud, Microsoft Azure, AWS)? This affects the requirements picture and which modules of the business systems you need. Anchor has experience in evaluating different scenarios with systems and can guide you in making appropriate choices. Think several years ahead in your choice of ERP system. It is expensive and painful to change ERP systems. Make a choice that fits your company's business strategy and desired growth. The ERP system will then be a long-term platform to build on for a long time.

Start with a Quick Assessment where processes, information and IT are mapped as a basis for further requirements and analysis

Only evaluate business systems that are relevant

There are many ERP systems to choose from on the market, and they have very different content. ERP systems have grown from different starting points and have different depths in different areas. One ERP system may be strong in business management and financial processes, while another ERP system is good at production management and supply chain. Narrowing down to a few systems to evaluate early on makes it easier for you. Differences in laws and regulations between countries can also lead to requirements for the ERP system. Can it handle these through configuration or customization?

ERPs originate in different industries and have different strengths in different functional areas

Evaluate your target image against the business system

It is important to match your own processes and requirements with the business systems you are evaluating. This will reveal needs that need to be addressed by external systems, such as expense management, output management (shipping labels, invoice formats), e-invoicing, supplier invoice scanning, certification and BI. Security and communication are usually part of the technology platform outside the ERP system. Often the ERP system needs to be connected to your existing systems and new plug-ins to solve all needs. Data warehouses often need to be solved separately from the ERP system. The new ERP system must fit in with the technologies and systems that you will continue to use. This can be a limiting factor as not all ERP systems are compatible with all technologies or can be easily integrated. Keep in mind that customized integrations cost a lot, both initially and in the long run.

The new business system must fit in with the technologies and systems that you will continue to use

Anchor's services in business systems

There are no perfect ERP systems, however, the systems offered on the market can be used successfully with the right implementation and organizational training.

Are you about to change or acquire a new ERP system?

Get help from experts in ERP procurement. You'll get the right guidance in choosing a system and implementer. You save time and money by not having to evaluate irrelevant choices and get the right guidance on how the system is implemented in your organization step by step.

Do you have an ERP system but feel that you are not getting the benefits you would like?

If it is due to technical configuration or insufficient change management for your own business, it can be corrected with the help of the right skills. Automation and improved reporting or BI are also things that you often need to supplement with after the actual business system is in place.

Anchor are experts in helping companies analyze their situation and implement the right system support. Get in touch if you want to know how we can help you!