Don't fall into the pit of making your ERP system software too complicated. Then you'll have to hire a team to use it effectively.
An ERP system software is primarily an integrated suite of modules and features that can encompass financial, production, services, human resources, payroll, time entry and CRM (customer relationship management). The software is dependent upon how your company work flow operates, how you would like to set it up and how it can be incorporated efficiently and effectively into the company's environment.
The modules your company purchases is dependent upon what is most important to the company's processes (this goes back to the beginning of our ERP blog series). 
Again, one word of advise as you continue the ERP research buying process ... Keep It Simple Stupid... the old KISS method still applies here. An ERP system too complicated can make your team's life miserable. Then what happens? Your team only uses 35% of the ERP system software you have, which is the national average.
Typically companies are examining a combination of financial management, manufacturing, project management, supply chain management, product life cycle, supplier relationship or customer relationship management (CRM) software ERP modules. Know what your team desires and understand the resources needed from the company (not just the vendor) in undertaking an implementation of any piece of the modular ERP software. There's a commitment required from the company and the vendor and the agreed upon combination equals success.
Industry Specific ERP software can be necessary. I spoke with a CFO from a large asphalt company the other day. They have two types of software they use -- bidding and order/job implementation. Due to the critical element of what can be missed in a bid for a highway or a bridge, there was an ROI (return on investment) for the bidding software they implemented and used habitually. On the other hand, if some customization is necessary, most softwares can handle that but beware that you own the code and that it is in a programmed language that can be integrated to other applications or services.
Next week .... cost!
Which ERP System is right for your business?
Often times when we research software systems for our clients, we hear them say, "This software was made specifically for our industry." While this may or may not be true, there are some things you need to consider when looking for the right software:
- Does the production software or financial accounting software contain an Open Source Code or Closed Source Code? In relation to software, the owner of the software can exercise control over what users can do with the software. Can you purchase the software code so that the software can be customized (open source)? If so, once those customizations are made, can you own that code? If you change vendors and did not purchase the code and you want to implement an upgrade, you have to pay for that customization all over again. Bottom line, be careful with customizations - you may be stuck with a vendor you don't like or you may be stuck with software that has high maintenance costs for upgrades and support.
- What language is the business ERP software written in? Why is this important? If the software isn't in a language common to the software industry, then you will probably be paying a lot for the software, the customizations, maintenance and the training. If the labor pool for programmers in this expertise is small, it could be a very expensive software system to support and train to use.
- What is the relational database infrastructure like? Are the data tables relational? Relational databases use tables to store information. The model uses the relationship of similar data to increase the speed and versatility of the database. Relational databases are created using a special computer language, structured query language (SQL) that is the standard for database interoperability. SQL is the foundation for all of the popular database applications available today, from access databases to internet database structures. If the software you are thinking about purchasing does not have a relational database, it can become very difficult and time consuming to pull reports in the format you desire, or worse yet, the information may not be available at all.
- Research: Find out how long the product has been around and when it had its last update. Has it kept up with the industry trends, or was it purchased by some big company but has not received a face-lift in the last three years.
When someone states, "This software is made for your business" there's usually a big price tag associated with that. Today, many products out there can complete 85% or more of what your company does. You have to ask yourself what is the ROI (return on investment) associated with those customizations? Do the customizations solve a minor or major problem? What is the impact on the workflow management process if we don't have this customization? Think it through before you invest.
Download the ERP and Accounting software source code kit