A Short Guide on Planning and Budgeting Your ERP Implementation

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As a business grows larger, it becomes increasingly difficult for business owners to plan ahead while accounting for all parts of the company, especially when deciding on budgets and goals. There could be too many projects and departments, each with different activities and financial needs. 

It could take too much time for a handful of executives to manage all this, which is why companies today implement enterprise resource planning (ERP) systems to optimize this process moving forward. Even locally, an ERP system Philippines based companies can rely on can come in so many forms and customizations that is catered to every business’ specific needs.

However, the offerings for an ERP system can be daunting, especially for inexperienced business owners who may commit to poor investments. They may first consider, for example, that a subscription-based license may cost less per payment, but it isn’t a perfect fit to the company in long-term.

Before deciding on your ERP implementation for the company’s future, there a few crucial points to consider when planning and budgeting for such a huge investment.

Understand the Business’ Needs

It goes without saying that business owners should first take note of the company’s problems, priorities, and limitations before anything else. What the company needs will determine the necessary configurations of the ERP system, such as whether it will be on-site or online, along with varying combinations of modules and features.

Aside from this, it also means knowing how much the business can actually allocate to the ERP. As this is the case especially for younger companies, the company budget may need to go to more pressing matters than allocating too much of it on ERP that does more than the business actually needs. 

While this software solution is indeed useful, it may be wiser for business owners to strike a balance between function and cost-efficiency. Only when they’ve outgrown their current software solutions will they need to invest more in upgrading their ERP system.

Have a Tangible Vision

Given the company’s needs, business owners should know what their company is setting out to do through a vision that is tangible and practical, while also accounting for how the business will grow. Without a solid plan of what the company will do or become, an ERP system will serve as a large investment with little purpose. 

The company should know its projects and goals for the foreseeable future so that they can have a proper grasp of how ERP can be integrated into the whole process. This will determine which functions are necessary for the company’s needs, not to mention the training required for employees to make use of the implemented ERP. 

It will also help provide foresight on managing the system’s licensing fees, maintenance schedules, and other equipment required for it to work, all of which may stand in the way of the corporate timeline and budget allocations to projects. 

Be Critical of Your ERP Choices

The goals and needs of the company are meant to keep business owners pragmatic on how they choose their software solution. Inexperienced business owners may be tempted by all the modules, feature offerings, and customizations that some software solutions would offer aggressively to them, but these will come at a greater expense that might go nowhere.

When deciding on an ERP system, companies should first consult with their own people, especially the project teams that will likely benefit most from the implementation if done right. They must stick to their plan with an ERP implementation that is customized to their preferences and needs. It should be able to receive the right data and to produce relevant reports, especially for corporate decisions.

Furthermore, businesses should maintain a long-term perspective on their ERP system. They could opt for a single-purchase license for on-site usage, or they could opt for a cloud-based software subscription. This choice alone affects the costs of extra equipment and scheduling maintenance, as well as a timeline for upgrading the system for company growth.

It’s clear with all these considerations that planning for an ERP implementation is a heavy investment, both in finance and in practice. It’s really not an easy decision, and it can spell the difference between a performative deficit or optimized integration into the company’s activities. It’s because of this that business owners should take time to plan this properly for the long run.

Once decided, you’ll want to make sure that you look only into software providers that you can trust to work in your company’s best interest. With that said, consider looking for a trusted partner for software solutions to your business needs. It’s best to find one that has more than enough experience with some of the top industries in the country, so you can be sure that the solutions they provide can best fit your company’s niche.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.