Through our Viewpoints series, Riveron experts share their opinions on current topics, business trends, and industry news.
Choosing between a single ERP system or a multi-ERP setup is kind of like deciding between adopting one really well-behaved doodle or opening a whole dog park.
The ERP comparison
A single ERP is the dream: one platform, one login, one set of rules. It's clean, unified, and your IT team can sleep at night. Everything talks to everything. Reports run smoothly. Your CFO smiles. But let's be real: this unicorn ERP must do everything well, like being an amazing chef and a professional race car driver. Sometimes, this means you'll get gourmet meals, but, other times, it's burnt toast and "we'll fix that in the next release."
On the flip side, a multi-ERP setup means different divisions, geographies, or acquired entities get to keep their preferred systems. Flexibility? Yes. Control? Kind of. Complexity? Absolutely. Integration turns into a team sport. Reporting becomes an interpretive art. You'll need consolidation tools, middleware, data lakes, and maybe a full-time therapistfor your IT staff.
So, how do you decide which ERP approach is best?
For your organization's ERP selection, here are the actual decision points—peppered with a dose of reality:
1) Business Model Complexity: Are you operating as one, unified business or a more complicated global portfolio? A single ERP fits streamlined operations. But a holding company with wildly different business models means you may need more than one "dog" at your side. Here are some examples that make good candidates for a multi-ERP environment:
- You are a manufacturing company that has a multi-geo footprint and discrete business models serving different industries
- Your organization includes a combination of complex SAAS products and a professional services environment
2) M&A Strategy: Acquiring companies regularly? Multi-ERP may be inevitable. Think plug-and-play (with a few sparks). Create an ERP environment that can be consolidated for ease of reporting through a CPM/EPM solution such as NSPB, Onestream, Anaplan, or others.
3) Standardization vs. Autonomy: How much central control do you want? Single ERP enforces process discipline. Multi-ERP gives local teams the freedom to roam—sometimes into a swamp.
4) IT Capacity and Skills: Be honest. Do you have the resources to manage multiple systems and the army of integration tools they'll require?
5) Spend and ROI: One ERP can be cost-efficient long-term. But if it can't support all needs out of the box, customizations and the world of unintegrated point solutions can quickly turn into a budget horror movie.
An ERP strategy that works for you
Whether you go with one majestic ERP doodle or a herd of doodles, golden retrievers and dachshunds, just make sure your processes are well-defined. This includes outlining exceptions, making sure data flows are well understood, aligning your teams, and knowing your reports won't require an interpretive doggie dance to explain.
Choose wisely—your future self (and your IT team) will thank you!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
