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Choosing ERP software based on company structure

Choosing ERP software based on company structure

By Fabien Paupier

Published: November 7, 2024

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

The ideal time to implement an ERP

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

  • If the company is becoming increasingly difficult to manage, due to 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 rigidity and the implementation of inappropriate methods. The best choice is to implement it when the company has reached a certain maturity in terms of its operations and goals.
  • Company size: ERP 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.

ERP selection criteria for small and medium-sized businesses

The cost of acquiring such software is considerable. However, it's important to remember that ERP should be chosen on the basis of the functionalities it offers. These must be adapted to the size of the company in question. Admittedly, it's 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 know that, for an SME, the implementation of an ERP must meet a need for standardization of all company operations. The software must therefore be able to collect the SME's operating and performance data. Once this 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 in such a way as to make it a genuine management tool.

Choosing an ERP for a large company

For large companies operating in a wide-ranging sector, the choice is obviously for an ERP dedicated to their sector of activity. Such software must be able to consider all the particularities of an operating circuit. In the trading sector, for example, this means keeping abreast of the expectations of major distributors. 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 enable the managers of this large company to better control 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 foresee the evolution of a given company. And all this while allowing the company 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.

For this reason, ERP must be a service management tool. It must also be capable of being extended to cover new activities, new users and new sites. It's also a project management tool. It enables you to plan your company's activities in near real time.

Article translated from French