How To Do an ERP Comparison

By Neil Zawacki
Updated: September 14, 2011

ERP (Enterprise Resource Planning) solutions have become an important part of many small businesses. The software allows a company to integrate important management information and automate a wide variety of financial, sales and CRM processes. It can be somewhat tricky to choose a solution, however, since there are so many different vendors available.

You should consider the following factors when comparing ERP solutions:

1) Money saved

ERP solutions can dramatically lower operational and administrative costs at a small business. For the most part, you should look for an ERP solution that will lower your company’s annual IT costs by 70 percent or more.

2) Speed of the system

Different ERP solutions operate at different speeds. Some ERP systems will provide near instantaneous access to information while others will take several seconds for the data to be processed. You will probably need to demo the software in order to get a true idea of how fast the ERP system is.

3) Features available

Most ERP solutions come with the same basic features (inventory management, cash-flow management, project data management) Many of them offer special functionalities that may be useful at your small business, however. Check to see which ERP vendors offer the features you want and which ones don’t.

4) Scalability

ERP solutions often need to be upsized or downsized as the number of employees changes at a company. You should therefore see which ERP solutions can be quickly scaled in either direction. You may want to check into the ease of diversification as well if you plan to invest in multiple assets.

5) Time of implementation

An ERP solution doesn’t have to take several weeks to implement at a company. Go to the different vendor’s websites and read the projected estimates for how long it will take for the ERP solution to be up and running. If you don’t immediately need the ERP solution, this factor can be set at a lower priority level.

6) Efficiency

Your employees are going to waste a lot of time if you purchase an inefficient ERP solution. You should look for an ERP system that streamlines the basic processes and doesn’t require the same information to be entered multiple times.

7) Price of system

This is obviously an important factor when comparing ERP solutions. You should keep in mind that the initial price tag may not reflect the overall cost of the system, however. You also need to factor in maintenance, support, and updates to the software. If an ERP solution offers any of these for free, they could turn out to be a better deal than an ERP solution that costs a little bit less.

Featured Research
  • The Future of ERP

    Today's business decisions are data-driven and the difference between success and failure can be boiled down to utilizing the correct data. Now more than ever, companies have access to not only robust data but consumable data as well, through Enterprise Resource Planning (ERP) software. more

  • Top ERP Trends of 2017

    No matter the size, success or industry in which you do business, data is vital. Because of this, data-driven technologies such as Enterprise Resource Planning (ERP) systems are becoming more important for the streamlining of quantitative data and gaining/analyzing key insights. Even better, as of 2017, ERP tools aren’t only for enterprise companies in the manufacturing and distribution sectors—they’re for everyone. But that’s not the only keynote change that’s taken place this year … Download our latest guide to see what else is happening with ERP! more

  • Making a Business Case for ERP

    Are you in the market for an ERP solution but hesitant to purchase due to the potential financial risks associated with implementing such a tool? While costs may seem prohibitive, and make it difficult to get stakeholders on board, an ERP system can add SIGNIFICANT value to your organization, regardless of what industry you are in. more

  • Building Secure Multifactor Authentication

    As threats to password security have increased in recent years, multi-factor authentication (MFA) has rapidly gained adoption as a method for increasing the assurance of authentication for consumer and enterprise web and mobile applications. more

  • CIO eGuide

    Data is becoming increasingly important in business. As a result, more and more organizations are becoming attractive targets for hackers. Data breaches caused by stolen credentials are on the rise. You need smarter tools to protect your organization against the monetary and reputational damage caused by a data breach. This guide will explain how Okta Adaptive Multifactor Authentication (MFA) provides the security that IT needs, while also providing the simplicity end users want. more