What are some key factors to consider when choosing an ERP software for your organization?
Considering what has been going on recently with Covid19, it is not surprising that many organizations are looking for that extra edge to continue their operations in a profitable and sustainable way.
The reality is clear, this pandemic has created massive uncertainty economically and especially in terms of public health.
This fact was also demonstrated in a recent analysis by Morgan Stanley, where they found a possibility of stock market volatility in 2021, mainly due to the fact that “stocks likely need to take a breather, much as they did in the second quarter of 2010…”
So with that mentioned, will your enterprise get through a potential squeeze?
Is an ERP software truly valuable for your organization, and if so, what should you look for in one?
This quick article will dive into this further…
Common challenges for buyers
First off, before getting into what to look for, let’s first establish potential challenges you may be facing, or may be unaware of.
A massive issue many organizations face today is a skill shortage.
The job market is having a flood of applications, mainly due to automated job application sites, and a lower barrier of entry for application.
According to the national institute of labour studies from Flinders university, skill shortages has many causes, they include “A general under-investment in skills development; rapid structural change combined with low levels of overall unemployment; a cyclical surge in employment in a part of the economy; and particular spots of weakness in the training system.”
Today, more than ever, this can impact the talent you acquire and be costly.
Another key issue is a demand from organizations to have a complete ERP solution that is all in one. This was found in a February 2021 report released by Constellation research.
The study’s author, Holger Mueller, wrote that, “In an era when labor costs are quickly rising and talent is getting scarcer and scarcer, a solution’s automation completeness, ideally spanning the entire enterprise, is crucial for success.”
What to look for in a ERP software
So now that we have gone over some key issues enterprises are facing within this current market, let’s answer the crucial question:
What should you look for in an ERP software?
This shouldn’t come as a surprise to anyone dealing with the tech industry, and it has been clear that the cloud is an ever growing trend.
Much of the appeal of this technology comes from backing up data digitally and not having to rely on a physical location of servers, which can be costly to run, fix, and risky if they fail.
Machine learning AI
This is yet another technology that is continuing to trend within the enterprise space much like cloud technology.
Enterprises that can analyse all of their data in one palace, and have artificial intelligence that can make suggestions on where to improve in their organization will have the upper hand.
Especially in this economy, cost savings and effective decisions that lead to KPI’s is crucial…
ERP and HCM
Typically ERP softwares don’t do all the functionalities of Human capital management softwares, but there have been recent shifts to combining them, especially with Oracle.
When looking for an ERP, a beneficial feature would be the ability to onboard talent in a cost effective way, whilst also keeping track of the overall benefit they bring to the organization.
If your software can tell you which level of your organization is performing poorly, yet also explain where you got the talent and why it may be performing poorly, you may find effective solutions to create win-win scenarios for both you and the employees.
So in short, during a volatile time, effective data and decisions need to come together to ensure the best possible outcomes.
ERP softwares can offer that solution, but you need to make sure you are able to find the right features needed for this time period. Dealing with skill shortages, market uncertainty, and public health issues can absolutely be a burden that can slow down operations and even close your business.
Hopefully with this information you have gotten some insights, and can continue to survive, and thrive in the years ahead!