The market for enterprise resource planning (ERP) solutions is soaring in South Africa.
Building on the 2022 base value of R25 billion, market analysis company Market Research Future projects that the country’s ERP software sector is growing at a compound annual growth rate of 7.5% through 2028.
Growth is driven by numerous factors, including an increased demand for automation, a need to comply with regulations, scalability, and digital transformation to remain competitive.
While it is widely known that cost, functionality, and ease of use play crucial roles in deciding which software to buy, the quality of the provider should also never be overlooked.
It is important that the provider, or the company that implements your software, understands what you require for the implementation to be successful.
An effective provider can tailor your ERP system to your business operations. It is also one that recognises the importance of having your ERP system integrate seamlessly with your current processes and third-party applications.
Additionally, the implementer needs to provide staff with practical training and support before, during, and after transitioning to the new system.
Organisational change is a huge undertaking that needs to be managed correctly. To this end, it is crucial to apply industry best practice to optimise the use of the ERP system.
You want a provider that offers a structured approach, beginning with a detailed needs assessment and carrying through a phased implementation process and support programme.
Although the South African economy's challenging state may tempt business owners to choose cheaper service providers, these providers often lack the skills to adequately configure the system to meet the organisation's requirements.
The result is that the business must pay even more to have the system set up correctly by a provider with the necessary expertise.
It should also be remembered that business operations must continue as the new solution is being implemented. No company in South Africa today can afford to lose time due to constant implementation disruptions.
Ultimately, the business goal is to achieve the best possible return on investment, especially when implementing a fully integrated business solution designed to meet all your business needs. This is achieved through providers with the correct experience."
And again, I want to stress that the provider must offer support services to help employees adapt to the new system. There should never be a situation where a provider believes it is ‘job done’ the moment the ERP solution is installed.
An effective ERP implementation should enhance operational efficiency, provide real-time insights, streamline workflows, and enable businesses to scale while maintaining agility. It should ultimately contribute to better performance, cost savings, and competitive differentiation, ensuring short-term success and long-term sustainability.
Almost all South Africa’s formal businesses will be required to transition to ERP systems for one reason or another. These reasons might include a company requiring complex processes that require integration, a sudden period of rapid growth, or the need for a scalable solution quickly.
Whatever the case, it is expert software providers they should turn to.
