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Choosing ERP software based on your company's structure

Choosing ERP software based on your company's structure

By Fabien Paupier

Published: 7 November 2024

ERP, also known as business management software, is a tool for managing most of a company's requirements. These requirements include customer acquisition and the management of all commercial and human resources activities. However, choosing this software and the ideal time to implement it is not an easy operation.

The ideal time to implement an ERP

There are no criteria that define the right time to implement an ERP system, but rather an accumulation of needs that will trigger the project. In fact, the implementation of an ERP is often triggered in the following cases:

  • If the company is becoming increasingly difficult to manage because of errors such as multiple data entry...
  • It is also required when data is scattered between different users. In reality, it makes sense to implement an ERP system as soon as a company is set up. However, if this software is integrated too far in advance, it could lead to a degree of rigidity and the implementation of inappropriate methods. The best choice is to implement it when the company has reached a certain level of maturity in terms of its operations and goals.
  • Company size: An ERP system can be implemented for companies with at least 10 employees. Before that, opt for more flexible management software. The range of business management software on offer is constantly expanding. The multitude of choices available in this field sometimes complicates the decision to be made.

Criteria for choosing an ERP for a small or medium-sized business

The cost of acquiring such software is quite considerable. However, it's important to remember that ERP should be chosen on the basis of the functionality it offers. These must be adapted to the size of the company in question. It is admittedly difficult to draw up a list of existing offerings on this market. A large number of players in this sector are also present on this site. This will enable you to compare them. You should also be aware that, for an SME, the introduction of an ERP system should meet the need to standardise the way the company operates. The software must therefore be able to collect the SME's operating and performance data. Once the data has been collected, the software will process it with the aim of boosting the company's productivity. So an SME will choose its ERP so that it is a real management tool.

Choosing an ERP for a large company

For large companies operating in a wide-ranging sector, the obvious choice is an ERP dedicated to their sector of activity. Such software must be able to consider all the particularities of an operating circuit. This means keeping abreast of the expectations of major distributors in the trading sector, for example. It is then possible to adapt the operation and administrative management of the entire company according to the actual observations made through the use of an ERP. This would give the managers of this large company greater control over the administration of the entity. The company's relationship with the outside world is thus guaranteed to improve. A software package of this kind is also what makes it possible to manage the present and forecast the future development of a given company. And all the while allowing it to evolve. The functional scope of this large-scale company, its pre-purchasing department and the size of the market it is targeting are the main selection criteria to be considered in this option.

The ERP must therefore be a service management tool. This software must also be able to be extended to cover any new activities the company may undertake, the possibility of having new users and the creation of new sites. It is also a project management tool. It allows you to plan the company's activities in near real time.

Article translated from French