Last week, we introduced you to a study done by Software Advice, a consultancy that matches Enterprise Resource Planning (ERP) software buyers with vendors, in which they analyzed the factors that influence ERP selection by prospective buyers. We explored the good news that going through this process with consultants specialized in ERP software implementation can produce great results. To learn more about this, visit here. Now, let’s take a closer look at the findings from the study and how they relate to where your business may be at right now. We hope the findings serve as a guide for decisions your business will make in their own ERP selection.
Findings from the Study
- Majority of buyers lack an ERP system currently- Many of the prospective buyers of ERP software do not currently have a system in place that they use. In fact, this demographic represents two-thirds of all current prospective buyers.
- Many are using unrelated systems to try to achieve ERP functionalities- Forty-four percent of prospective buyers are currently relying on a combination of systems to carry out their ERP processes even though those systems are unrelated to one another. This leads to inconsistencies and prevents true streamlining.
- Majority considering need for ERP due to need for data integration- The main reason prospective buyers are looking into ERP systems is because they have a need to improve the integration of data. This integration is needed between different business processes in response to a current lack of streamlined and integrated processes. This need is true for over fifty-nine percent of those who were part of the study.
- Many considering need for ERP due to needed CRM improvements- Another key reason all prospective buyers are considering purchasing ERP software is because they need to greatly enhance their customer relationship management (CRM) database and functionality. Forty-seven percent of respondents felt this way.
- Many considering need for ERP due to company growth- Twenty-seven percent of prospective buyers who do not currently use an ERP system say that a key reason they are considering getting one is because of current and expected future company growth.
- Lack of support key factor in wanting an ERP system change- Of the prospective buyers that are currently using an ERP software system, about one-fourth of them say that they feel a lack of support in using their existing system. Therefore, they are looking elsewhere to find one with sufficient support in using it effectively.
- Cost key factor in wanting an ERP system change- Of the prospective buyers that are currently using an ERP software system, nearly twenty percent of them say their primary motivation for undergoing a search for a different ERP system is because of the high cost of their existing one.
What the Findings Mean for Your Business
As you can see from the findings and those exploring ERP selection, there are many factors that go into the process. You likely can relate to many of them. So, when and why should you consider getting or upgrading your ERP system?
- An integrated and streamlined system will be more effective than various disparate ones and will ultimately save valuable time
- ERP can do so much for your business that you miss out on by not having one. ERP systems are robust in capability and powerful in achieving manufacturing automation.
- An ERP system will allow you to improve data integration.
- An ERP system will allow you to improve your CRM database and ultimately the experience your customers have and your capability to reach them effectively.
- An ERP system doesn’t have to be free from support. By choosing a consultant/vendor to walk through the selection, implementation, and use process with you, you will have the needed support to get all that you need out of your ERP software.
- In wanting to achieve manufacturing automation yet saving your business from too costly of a solution, you can consider manufacturing cloud ERP software. This is cost effective no matter the size of your business.
- ERP systems allow you to scale with growth and promote more of it because they are capable of handling the increasing complexity that growth can bring.
As you can see, you are not alone in your desires for integration, CRM improvements, and a system that keeps up with growth. These can be achieved in affordable ways with needed support through modern ERP solutions. Contact us to help you in the process of ERP selection. To learn more about the realities of manufacturing and how the future of manufacturing aligns with the future of ERP, view our pre-recorded broadcast “A 20/20 Look at Global Manufacturing”.