Microsoft Dynamics: How to Select an ERP Solution for a Small and Medium Business

Gurushanthamurthy, Practice Head – Microsoft Dynamics in DreamOrbit, which specializes in developing software for Logistics & Supply chain industry, talks about How to Select an ERP Solution for a Small and Medium Business.

Before selecting the right ERP to your business organization you need to keep the below points in mind:


  • Identify what you need

Very first thing you should do in selecting right ERP is to identify what you need. You need to finalize the “needs” not the “wants” before selecting ERP. Finalize the functionalities you are looking in ERP which are business critical and business enabler. Identification of Business critical functionalities will help in selecting right ERP and get maximum ROI.
The software must meet your basic functional requirements in order to be a useful tool for your business. Ideally, the software should provide you with more than a basic functional fit, it should provide a strategic advantage to drive efficiency and expand your business.

  • Technology

Technology plays a major role before selecting the right ERP. Evaluation of technology is to look at your current technology infrastructure and IT capabilities. Is the technology compliant to the standards? Is the technology in line with the current technology platforms? Availability of resource for the technology used is very important for future support and services.

  • Software Vendor

The software vendor is the company that develops software product and functionality. You need to look at the Software enhancement road map and whether he continues to develop it in the future. You need to look at the vendor viability, support system and Vendor Partnership network and Organizational Compatibility for his software.

      • Implementation Partner

Successful implementation of any ERP software is purely dependent on the Implementation partner. The right implementation partner can bring experience, industry knowledge, best practices, and technical capabilities to the table that will have a big impact on the success of your project. You need to select the partner who has already successfully implemented and has successful case studies.

      • Maintenance & Support

ERP software runs smoothly if suitable maintenance and support is given by the vendor. ERP software will be enhanced and additional features are periodically added to it. Up gradation of ERP, training and maintenance is very essential from the vendor to get maximum benefit out of ERP.

      • Total Cost of Ownership

You should consider the main cost areas: software license, implementation, Infrastructure cost, and maintenance and support. You need to evaluate the software license which gives maximum number of users and functionalities. Each implementation is unique; cost varies from one implementation to another. Infrastructure comprises the hardware such as servers and wiring necessary to operate the new system sometimes it is included in implementation cost. You can expect to pay between 18% and 25% of the software license cost on an annual basis for maintenance and support.

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