An Enterprise Resource Planning (ERP) system is great at centralizing data and operations. Information entered once in the system can be used by other areas, decreasing duplication of effort, time and money. Usually, companies consider acquiring an ERP setup when they experience complex and interrelated business problems. The idea is to use the new system to correct the issues, which are often generated by common processes that are disorganized and inefficient.
1. Be prepared to make changes to your processes and procedures. In most cases, it makes more sense to change internal processes, rather than to customize the system to meet current processes. The workflow included in an ERP system is industry standard and has been proven to be effective in most situations. Note that your policies and procedures manual will probably need to be modified to accommodate the way the ERP system works.
2. No ERP system is perfect. Expect a few issues and problems along the way. To avoid bugs and other problems, select a program that has been around for awhile and has been “cleaned up” in previous versions.
3. You must decide not only on which modules to implement, but also on which one should go first and which one would go next. Become knowledgeable on the functions of each module and take notes as needed. Many times the Human Resources module is set up first because it includes all employee names and passwords.
4. Request modules and features that are applicable to your business and industry. Accounting is a commonly used module along with inventory and sales. Add-on features are the driving force behind ERP implementations these days and should not be considered extraordinary items. In the past, the expectation was for a firm to buy into the “vanilla” program, but these days the expectation is to offer a more customized product.
5. Costs of an ERP system implementation can increase little by little as you add up the cost of data migration, recurring costs of training and maintaining parallel systems. Be ready for unexpected customizations or other hardware and software issues.
On a final note, you may also consider ERP systems on the cloud, which has been growing lately. In this situation, you don’t own the system or maintain it; rather, you pay a monthly “rent” to use the ERP. This setup is also known as SaaS ERP systems, and it can save you money in upfront fees and annual maintenance costs.
Enterprise resource planning (ERP) software delivers the ability to manage and standardize business processes across your entire organization. The increased efficiency from this can generate an impressive ROI. But there are hundreds of ERP vendors to choose between. more
The hidden costs associated with implementing an ERP system can add up quickly. Businesses frequently find that these projects go over budget despite being well planned. You can avoid this problem by preparing for these overlooked expenses ahead of time. This allows you to develop a more accurate budget and even reduce some of the costs. more
Although the SaaS model is becoming increasingly prevalent for all types of business software, many organizations have been reluctant to switch to SaaS for ERP (Enterprise Resource Planning) application modules. The thinking goes that ERP functions are too important to be left to the cloud. more
Among all of the business software applications necessary for business operations, ERP is undoubtedly one of the most important. Making the wrong selection can have a disastrous impact on your accounting, manufacturing, and supply chain. With so much at stake, it is crucial to make a well-informed decision. more
Selecting an ERP system is no easy task. You have to select and configure a system that fits your exact business needs. Getting it right means a myriad of benefits, from increased productivity to reduced costs. Getting it wrong can be a quagmire. Our new comparison guide gives you the data you need to make an informed decision, all in one easy-to-use Excel file. more