What to Know Before Switching to an ERP

What is an ERP, Why Do We Need it And Who Owns It?

ERP stands for Enterprise Resource Planning, which is a fancy way of saying that it’s a system that integrates or manages all the business processes of an organization. It can touch all parts of the company from accounting to production to sales to executive decision making. An ERP is an essential component of most businesses as they grow into a medium-sized business.

The ERP system can be owned by the company or it can be leased from another company. The decision to lease or buy an ERP system depends on a few factors, such as the size and complexity of the organization, which components will be touched, and the cost of ongoing maintenance.

4 Questions To Ask Before Switching to an ERP

It’s important to get a full picture of what the ERP relationship will be like. Here are some questions you can ask to give you a head start:

  • Does the software run on our servers/cloud or the vendor’s?

  • Who owns the data?

  • Are there any compulsory fees to continue using the ERP or is it ours forever once it is paid for?

  • What is the cost of custom feature development?

The answers to these questions can help you understand what kind of commitments you will have, financial or otherwise, for as long as you use the software. And since ERP systems are often used for years or even decades, this could be one of the most important decisions your company ever makes.

Is Custom Software a Viable Alternative to an ERP?

Custom software can be a viable alternative to ERP, but it comes with a trade-off. Custom software will be more expensive in the short term, but can be much cheaper in the long term compared to an ERP with ongoing fees. And not only is the custom software built specifically for your needs, once it’s written you own it and can decide where it runs and who maintains it.

And custom software is really that: custom. Built to fit into how your organization does business. Switching to an ERP may mean changing some part of how your business operates, and depending on the business that could be difficult or unwanted. These are just some of the reasons that custom software is getting more popular over time.

ERPs can be expensive and require a lot of work to customize for a business, causing it to be difficult to keep up with day-to-day operations. Custom software is less expensive and more customizable, allowing businesses to spend time building the company and not fighting with the ERP. From the cost to the unlimited customization, custom software can be a great alternative to an ERP for your organization and is something to consider before making the decision.

How to Invest in Your Company’s Future With Customized Software Solutions

Customized ERP software solutions have been used by companies for many years. They help organizations to grow and become more competitive by giving them the flexibility they need to adapt to changes in their markets.

To learn more about how you can invest in your company’s future with customized software solutions, give us a call or send us a text at 734-367-4100. We’re ready to help!


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