Enterprise resource management (ERP) software is engineered to collect, interpretand organize data from a variety of business activities like supply chain, inventory, sales, finance, engineering etc. ERP systems bring all of this data in one place, making decisions easier and increasing the bottom line through more efficient business operations. With the added benefits of data security and easy access from any device, the value of ERP systems speaks for itself for those looking to take their business to the next level.

ERP helps your data get the right context and perspective.Accessing the data, making sense of it, and doing so in real time are formidable challenges.The idea behind ERP is to help larger organizations become more agile, efficient, and make data driven decisions that result in better business outcomes.

ERP software can provide the vision a business needs.ERP systems are designed to provide rich overviews of the applications running on an organization’s computer networks. Besides being able to track key performance indicators (KPIs) in real time, ERP systems can integrate business departments by tracking workflow, identifying duplication, and ensuring data integrity.

Here are seven steps to help you choose the right software for your organization:

1. Conducting a process review and analysis.
   Since ERP is first and foremost of a business initiative, it is important to first define and document your current business processes, challenges, and strengths. This analysis should also include what you think your processes should look like in the future (your "to-be" state) and the corresponding business requirements. These processes and requirements should eventually be used for potential software vendors to demonstrate their product's capabilities within the context of your business needs.
   
   
2. Evaluating the technical fit.
   Although ERP should be a business rather than a technology initiative, it's also important to understand how a potential software solution will align with your current infrastructure. For example, if you're a Microsoft shop, you're likely to find a better technical fit with ERP software products built on a .NET platform.
   
   
3. Calculating the total cost of ownership.
   During the sales cycle, ERP software sales reps are interested in downplaying the costs and risks associated with purchasing their software. However, it's a lot easier to accept potential costs early in the process rather than after you're already committed to a particular solution. Be sure to uncover "hidden costs" associated with ERP, including implementation costs, hardware upgrades, backfilling your project team resources, software maintenance, etc.
   
   
4. Developing a realistic implementation plan.
   While you're still in the sales cycle, you should take vendor implementation duration estimates with a grain of salt. It's important to develop a comprehensive project plan that includes not just the activities required to install the software, but the ones that are required to ensure that the solution is fully functional, tested, and accepted by end-users. This plan should be developed prior to your final software decision so you fully understand the cost and resource commitments required to make the project a success. Your implementation project plan should include everything from business process and workflow design to data migration, conference room pilot, multiple test iterations, and key organizational change management activities.
   
   
5. Keeping track of potential business benefits.
   If you don't measure it, you likely won't achieve it. ERP projects are no different. Chances are your organization is looking at ERP as a way to reduce costs, increase revenue, or scale for growth, and you should estimate and measure benefits against these metrics if you are going to realize the full potential of ERP.
   
   
6. Keeping your options available.
   While this may sound more like dating advice, it's also relevant to choosing an ERP package. Contrary to common belief, there are more than just two to three primary ERP software vendors. Although two to three software vendors constitute a majority of market share and marketing dollars, there are at least 70 viable ERP software solutions in the market, all with varying degrees of functionality and strengths. Too many companies choose a solution based on brand name or based on what competitors are doing. Instead, organizations need to consider the options that are going to best meet their unique business requirements and sources of competitive advantage.
   
   
7. Seeking independent advice.
   Inquire with colleagues, employees, and others what they use. Conduct research on the internet or hire an ERP consultant if necessary. In any case, don't assume you have all the answers if you don't have experience with ERP. Find other sources of independent ERP advice to validate what you're hearing from software sales reps.

To select the right solution for your business, understand exactly how much the project will cost at each stage line cost, maintenance and support. Having a thorough discussion about price can prevent future surprises and disappointment. It can also help you shape a contract both parties can be happy with.