A Complete Guide To Assess The Need for ERP Software in A Business

Before planning for the solid implementation of an ERP software into the fundamental processes, every business needs an honest assessment of their business-specific needs. By far, this is the most crucial factor to study before taking the ownership of an ERP solution. Although there are enough of reasons to go for ERP software in most businesses, the last decision relies on the objective evaluation of the dire business necessities and the timing. Henceforth, it is mandatory for enterprises to ask these prior questions to themselves while spending money on ERP to make sure there is rationality in the process of decision-making. Here is the guide on the evaluation of ERP need in a business.

Assessment of business processes

The first thing to assess is the processes that are going well and those need improvement. Implementing ERP solution has always been a long-term decision for every business firm. For this, there should be a meticulous evaluation of all fundamental processes of the business before considering the final implementation. Following questions can make businesses headstrong about the idea of ERP.


  1. Is there any process undertaking which is beyond the capacity of current business software?
  2. Does the productivity of employees declining?
  3. Does everyone in the business, from partners, vendors to employees and managers, has direct and easy access to company’s data?
  4. Is non-timely reports a setback for every decision-making?
  5. Does the existing accounting system is underperforming?
  6. Is there too much reliance on manual processes?
  7. Does the financial statements or company reports are prone to errors?
  8. Does the company struggle to cater to specific industry standards or compliances?


Assessing these questions is undoubtedly essential in identifying the drawbacks and challenges in the business process.

Choosing the Criteria for ERP software selection

Price has always been a prime factor for businesses while settling for a perfect ERP solution. However, purchase of an ERP software is an investment whose returns are manifold. Thus, price would never be the choice criterion for ERP software, instead, there should be other criteria which include the cost of software ownership, features, usability, flexibility, training and support, proximity, implementation, server-based or works on an operating system. Recognising each of the criteria according to the priority will help businesses better in identifying which ERP solution is the perfect suite for them.

Short-listing of some top solutions

After getting insights of the business and its software requirements, there’s need for close evaluation of each software considered and how they match up the business needs. It is strictly recommended to make a list that spells out the pros and cons of each matched software. It will help the businesses to narrow down their choices and pick only from the top solutions.

Go for the demo of the top solutions

Before settling for the right solution, businesses must get the feel of using a solution with demos. Proper demonstrations of the few chosen ERP solutions help them get insights of the software glitches, bugs, any usability issues or navigation problems. Demos tailored to the business’s functions give away a clearer picture of what the ERP solution can deliver, making it easier for owners to pick the fitting-most solution.

After all the assessment has been made from noting down business requirements to closely researching every ERP software, it is the time to finalize the decision and stick to the software that best serves you. While implementing ERP surely involves some upfront costs, it is also a matter of life and death to choose the right solution that will make business more efficient and productive than ever.