Enterprise Resource Planning (ERP) is a powerful data management tool that serves as the backbone of any modern business. By automating data-driven processes, integrates business workflows and streamlines key functions. ERP system provides agility that is important to survive in a competitive business environment that has already been disrupted by the pandemic. As organizations continue to scale, businesses can no longer afford to depend on legacy methods of manually maintaining and updating data. For long-term sustainability, it is crucial to adopt a system that improves decision-making, securely stores key business data and helps each team organize and manage their tasks better.

Be it SMEs or large-scale businesses, whatever be the scale, every business stands to profit by implementing a robust ERP system. The implementation or migration to an ERP is a time-consuming and daunting process that throws off many organizations. It is a critical IT investment and choosing the right ERP for your business is a strategic decision where there can be no mistakes. With hundreds of ERPs flooding the market, choosing the right solution for your business is no mean feat. The following tips can help organizations select the right ERP vendor and implement the new system with maximum efficiency.

Assess your business requirements

The ERP implementation process is carried out to facilitate an organization in integrating all core business functions. Each business has different requirements and an ERP should be implemented to meet those specific needs. It is important to note down the scope of the project, assess business needs, review business processes, and chalk out the key deliverables you seek from the implementation. The more specific the requirements are, the easier it gets to identify the right vendor. Gain a clear understanding of what your prospective system offers and the value it is expected to bring to your organization. The lack of a systematic approach can result in costly systems and needless customizations.


A business is expected to grow in the future and keep up with business trends and forecasts. Implementing an ERP presents a great opportunity for adopting advanced technology and should be flexible to meet future demands. Implementing a new system or software is a costly affair that requires significant time and energy from all parties. Therefore, preference should be given to an ERP system that is scalable and can be upgraded with time to support different business functionalities. Not only will it reduce redundancy, but save costs, maintain software and vendor familiarity, and eliminate the need to deploy a new solution. Companies need to evaluate the capability of ERP systems to scale, upgrade, and grow with time. 

Measure overall ROI

How much ROI are you expecting your new ERP system to generate? While implementing an ERP is a costly proposition, it is important to consider your return on investment in the long run. The right ERP system will yield profitable revenue that outweighs the initial investment. However, if you just look for low-cost vendors you might end up paying more for customizations, maintenance expenditure, poor customer service, etc. Every business has a fixed budget but considering the ROI for a particular product is crucial for successful ERP implementation. To avoid any pitfalls, go with an ERP system that aligns with your organizational goals, industry type and business process without being too cheap or expensive on the pocket.

Compatibility with existing systems

As a business, you might already be using disparate systems for maintaining different functions like payroll, CRM, attendance tracking, etc. ERP solution leverages a single platform to streamline, manage, and automate all business processes. Therefore, your implemented ERP must integrate with all existing systems to prevent all efforts from going futile. If the ERP fails to integrate with current software systems, it may lead to additional labour charges and data migration costs. Opt for an ERP that can seamlessly integrate with the existing systems in your organization and work harmoniously. A consolidated system aids in easy data transmission and efficient management of different functions through a single platform.

Customization capabilities

The ERP world is in a constant fight between customization vs. standardization. Whether you are an SME or a large-scale enterprise, every company requires an ERP that integrates effortlessly with current business processes while enhancing organizational performance. An ERP with the right customization capabilities can help you achieve your goals and become globally scalable. It enables you to effectively optimize and adjust the functionalities of the system to meet your specific business needs.

Prioritize user-experience

The entire point of an ERP implementation is to increase staff productivity and haul manual processes and increase functionality. However, the entire project will fail if the end-users aren’t able to fully utilize the system optimally. Their ability to effectively interact with the system will determine the ROI. It is important to consider not just the software but also how easy it is for the end-users to operate them. Run a demo of the software before implementation by involving your end-users in the process to determine the feasibility of the implementation. It is a costly affair and requires equal participation from all stakeholders.

Research your ERP vendors

Transitioning to an ERP is a long and tedious process that requires ample research and commitment. Before you embark on your journey to finalize your ERP vendor, it is important to research various areas like product user-friendliness, scalability, compatibility with existing systems, etc. Conduct a demo at the beginning with each vendor to get a clear idea of the deliverables and their feasibility to the organization. This way employees can envision the possibilities of the new system, provide relevant feedback and make the process better for the organization.

ERP implementation is a long-lasting process that will reap endless benefits to the organization. It is a competent software that successfully integrates all functions of your organization, reduces errors, increases productivity, maintains due diligence and makes the organization profitable in the long run. 

Microsoft Dynamics 365 Business Central is an all-in-one business management solution designed and developed, especially for small to medium-sized businesses. It is flexible, customizable, easy to use, and connects seamlessly to the various business processes while enabling the operational teams and management to make smarter decisions promptly. At Citytech Software, our team of qualified and experienced Business Central Consultants are committed to providing the highest level of service to our clients. We are dedicated to enhancing the operational efficiency and employee productivity levels of your organization by leveraging the capabilities of the ERP tool.