With the massive emergence of business technologies, more and more enterprises are realising the significance of automation software and looking for reliable ways to streamline workflows. SMEs need software that can be integrated into multiple processes, increases productivity, and develops a well-connected workforce. And this is where Enterprise Resource Planning (ERP) system comes in.  If you and your team are struggling with old or legacy systems, it’s high time to implement a modern ERP system in Malaysia or elsewhere to manage your business operations within a single database. However, you can’t just jump onto anything all of a sudden; you need to make the right selection, especially when it comes to ERP implementation. So before you go ahead with ERP implementation, make sure to be prepared with the project team, ERP vendor, and strategy for success.  Don’t worry; we’ve created a comprehensive guide that will prepare you to step towards the ERP software.  Let’s get started!  Introduction to ERP System  Enterprise Resource Planning (ERP) is a scalable, innovative, and flexible business management solution that covers all facets of a business such as production, procurement, finance, inventory, supply chain, human resources, job costing, and other critical processes. It includes multiple applications to integrate and automate the core business operations and information on a centralised system through a multi-level interface. It is said to be an aid to manage processes and run all departments across the organisation with peace of mind.  Different Types of ERP System  Source: SelectHub  When we talk about ERP solutions, there are three types:  On-Premise  The on-premise private system is installed on the business’ server and hardware and further handled by your IT staff. This is certainly the least recommended out of three options as companies need to manage and maintain the security of their own data. This could be a good option for businesses that have an internal team of IT experts to keep the track of data.  Hosted Private Cloud  The SaaS (Software-as-a-Service) system is reflected immediately on the system. Companies that choose this route will have an external team to manage their platform and host data servers in their cloud. It could be a cost-effective option as you just need to pay for software, not the additional hardware.   Hybrid Cloud  As the name suggests, it is a combination of both on-premise and hosted cloud solutions. Companies can choose to keep some of their servers in-house, yet use a hosted cloud system to handle and disperse data among different locations. This could be a reliable option for companies who are seeking to incorporate applications or mobility to their existing on-premise system or planning to switch to a web-based solution.  Source: Accenture  As you can witness, Cloud ERP software is a highly effective, smart, and innovative way to manage business information across the entire organisation. That’s why, we recommend SMEs to adopt cloud ERP rather than on-premise ERP system to greatly enjoy low upfront cost, quick deployment options, high mobility, and data security.   Why SMEs Should Use ERP Solution?  Without the ability to track orders, materials, billing, shipping, and sale within a single system, your business won’t be able to compete in today’s fast-changing industry. Don’t worry; easy ERP implementation has opened many opportunities for businesses to expand wisely, regardless of their sizes to reap the rewards of advanced resource management.  Source: Panorama Consulting  ERP systems can help automate business processes, generate reports, and gives access to all your company’s data in one place. SMEs can secure the best results using built-in analytics and world-class functionalities for multiple operations, including production, job costing, finance, inventory management, accounting, reporting, budgeting, and procurement. With modern ERP software, companies no longer need to rely on manual tasks and scattered spreadsheets, offering you the most reliable software to unlock your real potential and achieve digital transformational goals.  Thanks to the mobile and cloud technology available in the market, making the adoption of ERP software for SMEs an excellent choice to thrive in a competitive environment even in times of uncertainty. Below are some perks of using an ERP system:  Improves efficiency  Safe and secure  Improved supply chain management  Easy to comply with regulatory forms   All expenses and information are focused on one centralised system  Workflow is consistent  Makes reporting and analysing easy  Enhanced customer satisfaction  Low infrastructure cost  Effective project management  Accelerates business growth  How to Choose the Right ERP System?  Since ERPs have a broad scope, it can be difficult to identify a suitable one for your company’s needs. It’s best to focus on the core objectives and requirements of your business to make the right selection. When selecting an ERP solution, it is good to consider the following aspects:  Is ERP the best fit for your enterprise?  Which ERP systems are very popular?  What features and functionality do you need?  Is it being utilised on-premises or in the cloud, or both?  Are you being practical?  What does success look like?  What resources do you need?  Have you found a genuine software partner?  Once you get answers to these, you will be able to make a better-informed decision on what kind of ERP will fit best for your business.  Source: Statista  The statistics shown by Statista reveals that the global cloud ERP market was expected to be worth 40.5 billion U.S. dollars by 2025, emerging at a GAGR of 13.6% during 2019 and 2025. After all, the system is comprised of multiple modules, each works on different areas and departments that can be catered to a wide range of industries.  How do you know if you need ERP?  Some SMEs with relatively a low volume of transactions may find standalone accounting software sufficient to manage their finances, sales, and inventory. The turning point falls when the company starts to scale and hit a specific level of growth. The wall of expansion may vary, but some common signs indicate the situation when your business needs an ERP system.   Source: Evans Data Corporation  Let’s have a closer look at those indicators:  Increased administrative and financial workload due to a high volume of transactions and conflicting internal procedures  Employees are having a hard time managing all facets of a business at once  The existing system doesn’t seem compatible, making it challenging to evaluate business information  Recurring stock-out, consistently missing the project deadlines and facing delays  Customers are getting exhausted at being bounced from one location to another to get their issues or queries resolved  Being repeatedly late in generating reports, relevant information, and taxation policies  Keep in mind, when the data is stored across