The options are practically endless when it comes to picking the right type of ERP system for your business. Cloud, SaaS, on-premise, the list just goes on and on and it can make choosing an ERP system a headache.

Unfortunately, there isn’t a one size fits all answer for helping you determine which ERP system is right for you. An objective evaluation of the different types of ERP systems out there can reduce the risk of needing some Ibuprofen during the decision making process.

Ask yourself the following questions on your journey towards picking the right type of ERP system for your business:

  • Do I want an on-premise or cloud ERP system? One of the first decisions you have to make when narrowing down your ERP options is if you want an on-premise or cloud ERP system. If your business is very complex and has need of heavy IT control, you’ll most likely gravitate towards on-premise systems—the opposite is true of simple companies who prefer to outsource IT functions.
  • Do I need a Tier I, Tier II, or Tier III ERP System? The scalability of the ERP system you choose is another important factor to consider. Tier II and Tier III systems provide more unique, industry-specific functionality than Tier I systems do. You want a system that’s capable of growing with your business.
  • Am I looking for a standardized or flexible ERP system? There’s over 200 ERP systems (and that number’s growing) on the market right now and not all are created equally. For example, Microsoft Dynamics ERP is more flexible than SAP but it’s best to just talk this one over with an ERP consultant before making a decision.
  • Should I go with best of breed or a single ERP system? Best of breed solutions are definitely more appealing than single ERP systems but they tend to come with some technical complexities like integration and data issues that can be difficult to manage without the right applications in place. Again, this is a great question to discuss with your ERP consultant and weight the pros and cons together.
  • Do I even need a new ERP system? At the end of the day the solution you’re looking for may not be a new type of ERP system. It may be process improvements, or data integration issues that need solving.

Whatever you decided, it’s important to remember that there is no one right answer to any of these questions. Each will have its own set of risks, tradeoffs, pros, and cons. It’s all about finding what’s right for you and your business.