ERP (Enterprise Resources Planning) forms the core of any successful business operations. As there is no one-size fit all approach in Malaysia, the process of exploring, evaluating and deploying an ERP system becomes paramount especially for the local SMEs that are new to it. The ERP selection criteria is not limited purely by the product itself, but is a combination of both a solid product and the consultancy services that comes accompanied with it. Hence, a combination of the right people and the right product paves the way to successful ERP deployments.
Main Consideration Factors includes :
What Is The Track Record of the ERP Software Vendor Malaysia ?
You need to do some basic background check for the ERP software and the ERP vendor, such as:
– How long the vendor has been established?
– How long the ERP software has been in the market ?
– The size and types of the vendor’s customer base?
– How many of the customers are using the ERP software ?
– The quality of support provided by the vendor to existing customers?
The strength and experience of the vendor’s consultancy team is one of the critical success factor for the ERP. Local Malaysian ERP consultants may understand the local requirements better than overseas ERP consultant, it helps to minimize communication and language barriers as well as culture conflict when implementing ERP.
– ERP needs to strike a balance between the requirements of both the top management and working level individuals.
– The ERP System readiness in compliance with Malaysia regulatory requirements such as SST.
– Integrated suite consisting of complete Financial, Inventory, Sales, Purchasing, Manufacturing & Reporting modules.
In General, customization of ERP source codes usually increases stability risks and local support issues. Therefore in case of ERP customization, It is recommend to customize as “Add-on” module. Add-ons may be built without altering the source code to enhance the standard modules while maintaining stability of the standard system.
The ERP system of choice must be equipped with solid integration and database platform. It should support ease of integration to third party data sources. ERP should be the centralized decision-making platform with data pooled from multiple external and internal sources. This forms the key criteria towards realizing Industry 4.0.
– Whether the system is able to scale and cater for future expansions or changes in any business processes in Malaysia?
– Does the ERP principal have clear roadmaps of the system’s future direction especially with the emergence of Industry 4.0 transformation?
– Does the ERP principal release consistent version upgrades and future enhancements?
There are two type of deployment : On-premise vs Cloud Hosting. The right choice depends on the availability of infrastructure. Many Malaysian SMEs are located in industrial parks with limited connectivity and average infrastructure. The experience of internal personnel in maintaining the ERP operations should also be considered.
The dollars and cents for any ERP deployment can typically be broken-down into two components, the software licenses and also implementation services.
Licensing options: One-off perpetual vs subscription model. Subscription model offers lower initial investment but comes with recurring capex annually.
Deployment options: On-premise vs Cloud hosting. On-premise deployment may be cheaper in the long run as it involves only one-off purchase of hardware and server. However, it is still subject to miscellaneous expenses such as utilities, networking and cost for IT personnel. Cloud hosting on the other hand offers hassle free and quick deployments at the expense of a slightly higher subscription fees every month.