Everything you need to know about ERP systems – and how to choose the right one

What is an enterprise resource planning system?

A business system is a system support that helps an organization manage central processes and data. Instead of information being scattered across emails, spreadsheets, and various standalone systems, it is collected into a more coherent structure.

Business systems are often called ERP systems. ERP stands for Enterprise Resource Planning. Gartner describes ERP applications as systems that automate and support multiple administrative and operational business processes, such as customer-facing processes, business processes, and asset management.

The business system is a tool for controlling how work is to be performed, who is responsible for the next step, and what information should be included throughout the process.

What is usually included in a business system?

Not all business systems look the same. A smaller company may need a simpler system for finances, invoicing, and customer records. A larger organization may need a more comprehensive system with integrations, permissions, automated workflows, and advanced reporting.

Common parts of a business system are:

• Finance: Accounting documents, invoicing, certification and follow-up.
• Order management: Order flows, statuses, deliveries and customer communication.
• Warehouse and logistics: Inventory status, purchasing, delivery planning and traceability.
• CRM and customer data: Customer information, agreements, contact persons and history.
• Projects: Time reporting, activities, budget, costs and milestones.
• HR and resources: Staffing, scheduling, roles and personnel-related processes.
• Reporting: Key figures, dashboards and decision support.
• Integrations: Connections to other systems, databases, APIs or external services.

In larger organizations, integrations are often crucial. A business system rarely needs to solve everything on its own, but it needs to be able to fit into the system map and exchange data with other solutions.

Automation and integration are central parts of ERP according to IBM's description of how ERP systems streamline functions, processes and workflows.

Why do companies need business systems?

Many organizations start looking for a business system when their current way of working no longer works. This may be due to growth, increased requirements, more systems, more users, or more complex processes.

A common sign is that employees spend a lot of time moving information between systems. Another is that there are multiple versions of the truth. Finance has one picture, sales has another, and operations follow up in their own spreadsheets.

A business system can create benefits by:

• Collect information: Data becomes more accessible and easier to trust.
• Reduce duplication of work: The same task does not need to be recorded multiple times.
• Automate flows: The system can forward, check and update information.
• Increase traceability: It becomes clearer who did what and when.
• Improve reporting: Decisions can be based on better and more up-to-date data.
• Create common working methods: More people work according to the same process.

Digitalisation remains a priority for many organisations. Eurostat shows that 73% of EU SMEs reached at least basic digital intensity in 2024, which is still below the EU's 2030 target.

Implementation of business systems

ERP implementation is the phase where system selection meets the everyday operations of the business. It's not just about technology, but about getting data, working methods, responsibilities and users to work together.

A successful implementation therefore needs to have clear direction, but also room for adjustments. It also requires that the system is tested against real use cases, so that processes, data and permissions work before it is put into use. Otherwise, small uncertainties around processes, ownership or integrations can create big problems when the system is to be used.

Deloitte highlights strategy, change management and data as central elements in ERP implementations.

IT project management and business systems

IT project management for implementing business systems is about aligning business goals, technical dependencies, and the decisions required to move the project forward. The project manager needs to create clarity around priorities, risks, and responsibilities.

This is especially important because a business system should not only be delivered, but also used correctly. The Project Management Institute emphasizes that business understanding is important for projects to create real value, not just follow plan.

Different types of business systems

There are several types of business systems. Which type is best for you depends on how standardized your processes are, how much customization you need, and what role the system will play in your business.

Standard system

A standard system is a ready-made system that is built to suit many organizations. It contains common functions and processes, often with the possibility of some configuration.

Standard systems are often a good fit when the process is relatively common. This could include accounting, invoicing, payroll administration, or simple inventory management, for example.

Advantages of standard systems are:

• Faster start: A lot of functionality is already in place.
• Lower initial complexity: You don't have to define everything from the beginning.
• Established functionality: The system is based on common needs.
• Clear product logic: The supplier is responsible for the product's development.

The downside is that the business often needs to adapt to the system. This can work well for common processes, but can become limiting if the way of working is unique or full of exceptions.

Industry-specific business systems

An industry-specific business system is built for a specific type of business. It could be, for example, manufacturing, retail, construction, real estate, healthcare, insurance or membership organizations.

The advantage is that the system often has ready-made concepts, flows and modules that suit the industry. The disadvantage is that it can still be difficult if the organization works in a way that differs from the industry standard.

Customized business systems

A customized business system is a system that is designed according to the business's own processes, rules and needs. This does not mean that everything has to be built from scratch. Often a technical platform, ready-made components and standardized building blocks are used, but the solution is built to suit your business.

This is where Multisoft often comes in and builds a customized system for needs where ready-made standard systems are not enough. The work begins with requirements gathering together with you and leads to an initial implementation that can then be further developed over time.

When is standard appropriate and when is customized appropriate?

There is no one-size-fits-all answer for all organizations. Standard systems are often best when the process is common and you can adapt your work style to the system. Customization is often better when the process is complex, unique, or strategically important.

A standard system is often suitable when:

• The need is common: There are already good solutions on the market.
• The process is easy to adapt: ​​You can change your working methods without any major problems.
• You want to get started quickly: Time to implementation is more important than precise adaptation.
• The process is not strategic: The system needs to work well, but does not create unique advantage.

A customized business system is often suitable when:

• You have a unique process: The way you work differs from standard solutions on the market.
• You have many exceptions: Ready-made systems require too many manual shortcuts.
• You need multiple integrations: The process depends on data from many systems.
• You want to automate administration, data or information: A lot of time is spent on follow-up, checks and handovers.
• You need high traceability: Decisions, statuses and changes must be traceable.
• You want to grow with the system: The need will develop over time.

Examples of customized systems

Multisoft builds customized business and operational systems for complex processes where standard systems are not sufficient. One example is a system support for a global vehicle manufacturer that helps them manage the sale of used vehicles and spare parts.

Another is a long-term collaboration with a major travel player , where Multisoft has developed 33 system capabilities that support digitalization, efficiency and new revenue opportunities.

Cloud-based, on-prem or hybrid?

Business systems can be operated in different ways. The choice affects security, availability, cost, control and management.

A cloud-based business system is operated via the cloud. This often provides easier access, faster updates and less need for your own infrastructure. An on-prem system is operated in the organization's own IT environment. It can be suitable when there are special requirements for control, security or integration with internal systems. A hybrid solution combines parts of both.

Multisoft's systems can be operated flexibly, for example in your cloud, in your internal IT environment or managed by Multisoft.

Important functions of a modern business system

A modern business system needs to do more than just store data. It needs to help the business work better. This means that the functions need to support both the user, the process and the IT environment.

Some important features are:

• Common data source: Everyone works with the same information.
• Role-driven views: Users get the right picture based on role and responsibility.
• Automated workflows: The system drives the process forward.
• Integrations: Data can flow between systems without manual registration.
• Reporting and analysis: Decision-makers get better information.
• Permission control: The right people have access to the right data.
• Logging and traceability: Changes and decisions can be tracked.
• Further development: The system can be adapted as needs change.
• User-friendliness: The system should be easy to understand and efficient to work with.
• AI support: AI can be used to interpret, search, classify, or summarize both structured and unstructured data and information.

How to choose the right business system

Choosing a business system is not just an IT issue. It is also an operational issue. The system affects how people work, how data is managed and how decisions are made.

So don't start by comparing feature lists. Start by understanding the process. McKinsey highlights that ERP transformations are often large and complex investments that can cost a lot and take several years, making governance, change management and clear goals important.

A good evaluation should take into account:

• Operational goals: What should the system contribute to?
• Process complexity: How many steps, roles, and exceptions are there?
• Data quality: What information is critical and where is it located today?
• Integrations: Which systems need to be connected?
• Users: Who will work in the system and how often?
• Security: What are the requirements for authorization, logging and operation?
• Management: Who is responsible for the system after implementation?
• Scalability: How should the solution be able to grow over time?
• Total cost: What does license, implementation, integrations, operation and further development cost?

A common mistake is to start with the system instead of the process. Other common pitfalls are underestimating data quality, missing user needs, or accepting manual side processes as a permanent solution.

This is also why requirements gathering is so important in Multisoft's delivery model. You own your requirements, while we are an active party that suggests, challenges and helps find a balance between business benefit and a long-term scalable solution.

How much does an ERP system cost?

The cost of a business system depends on the scope, type of solution, number of users, integrations, data migration, operation, support and further development.

A standard system often has a clearer licensing model. This can make it easier to estimate the initial cost. However, if the system requires a lot of customization, consulting efforts or side solutions, the total cost can still grow. The payment model can also be linked to usage, number of users or modules, which means that the cost needs to be monitored over time.

A customized business system requires more work in requirements definition and implementation, but can provide greater precision and more long-term benefit when the process is complex or strategic.

When comparing costs, you should therefore look at:

• Licenses or platform fees
• Implementation and requirements gathering
• Integrations and data migration
• Operation, support and management
• Further development
• Business benefit and time saved

It is often more relevant to compare total cost of ownership and business benefit than just purchase price.