Flexibility, resilience, and whether a solution is genuinely cloud-based are among the most important aspects to consider when choosing an ERP system for your business.
MyBroadband asked prominent ERP system providers in South Africa about the most important elements when choosing an ERP product for businesses.
According to Bernard Ford, regional head for Acumatica Africa, modern, true cloud ERP systems are essential.
He likened non-cloud-based ERP systems to analogue technology and truly cloud-based systems to digital technology.
“Everybody pretends to be cloud-based. 80% of them are not. They’re old technology. They may look digital, but if you look under the hood, they’re analogue,” said Ford.
“When selecting ERP, the first thing you’ve got to ensure is that it’s modern technology.”
He explained that true cloud-based ERP systems are built from the ground up for the cloud. Ford said some providers’ systems were built a while ago and have been modernised.
“They’ve got a cloud-based look and feel, but they’re actually not. The technology is old. Those systems will become redundant, and they are already becoming redundant,” he said.
“I call these products zombie ERP because they’re dead, but they don’t know it. They’re the walking dead and they’re being sunsetted.”
Ford explained that cloud-based systems are prioritised not because they are hosted but rather because they operate across cloud services and platforms.
“You can host anything. For example, say I want to refresh my exchange rates. I don’t want to have to go and download something from the bank and import the file,” he said.
“With the multi-cloud, I can click a button, and the system gets the rates from the Internet for me from the best source and automatically pushes them into the system. It does this in the background.”
He also explained that cloud-based systems allow for quicker implementation, allowing businesses to score quicker wins and solutions at a lower price point.
Ford said implementing artificial intelligence (AI) in ERP systems through the cloud is a game-changer and is becoming essential in modern ERP systems.
AI can act as a business assistant and information provider, and automate complex tasks within an ERP system.
Syspro agrees that cloud adoption in the ERP space is essential for modern systems.
“Increasingly, manufacturers and distributors are recognising the benefits of cloud ERP — flexibility, accessibility, faster deployment, and reduced infrastructure costs,” it told MyBroadband.
“The ERP landscape is no longer about digitisation for its own sake. It’s about choosing a future-ready platform — like Syspro — that empowers your business to thrive amidst constant change.”
It also highlighted aspects, including resilience and agility, as key considerations for businesses choosing an ERP system.
“The past few years have shown us how critical it is to have systems in place that can quickly adapt to supply chain disruptions, regulatory changes, or shifting customer demands,” said Syspro.
Other important considerations include:
- Industry fit: ERP solutions should offer deep functionality tailored to the specific needs of various sectors.
- Scalability and flexibility: It is key to choose an ERP system that can scale as your business grows and adapt to changes.
- Implementation support: Successful ERP projects require more than just software. Partnering with a provider that uses best practices, localised expertise, and has extensive industry knowledge makes a significant difference.
- Data-driven decision making: A modern ERP system should deliver real-time insights and support data-led strategies, enabling leaders to allocate resources effectively and respond proactively to challenges and opportunities.
- Risk and cost management: A clear project scope, strong executive buy-in, and stakeholder engagement are crucial.
SAP Africa principal project consultant Anthony Poltera told MyBroadband that cloud-based ERP systems have become the default. However, he added that hybrid models will still serve bandwidth-sensitive regions.
“Key considerations include strategic fit with your industry and compliance needs, scalability for future growth, and cloud readiness suited to your operational environment,” said Poltera.
“Total cost of ownership, user adoption, and the strength of local implementation partners are also critical.”
He added that modern ERP platforms should offer strong integration capabilities and incorporate AI for real-time insights and automation.
“Ultimately, the ERP must serve as a future-ready digital platform that aligns with your business goals and enables innovation across the enterprise,” Poltera stated.
This article first appeared in MyBroadband.
