by adminEnterprise resource planning (ERP) is a technology organizations use to consolidate and manage their company operations. Using data maintained in a single database, departments can collaborate with ERP software to better handle daily tasks, including risk management, accounting, project management, procurement, supply chain management, and compliance.
What is an ERP system, and why do we use it?
ERP software is an application commonly used by medium and large firms and certain smaller businesses. ERP software integrates business processes into a single, simplified database and user interface by providing modules for each main business function, including human resources, finances, inventory management, sales, and customer relationship management, in addition to other mission-critical features.
Instead of these databases and processes operating in silos, the primary objective of ERP software is to merge previously independent databases and processes into a single source of truth. Customer relationship management, inventory management, and any other modules related to sales operations all receive transaction information when a customer puts in an order for a product.
As a result, the ERP promotes data visibility and analysis from a single system across many business departments. Staff members do not have to enter the transaction into many databases simultaneously manually.
The Key Steps for a Successful ERP Implementation
An ERP’s ability to support specific business objectives differentiates between one that simply works and one that offers great investment returns. ERP software selection and implementation are two distinct processes; however, choosing an ERP system that is a good fit for your company’s objectives greatly improves the likelihood of a successful ERP deployment.
- Choose the ERP program that most closely matches the aims and procedures of the company.
- Create a timeline of all of your company’s interactions with the ERP system, taking customizations into account.
- Make a detailed budget and implementation schedule with measurable targets.
- Create a change management team to handle ambiguities, unforeseen problems, and opposition to new business procedures or IT systems.
- Establish a group of stakeholders, such as department heads and end users, to handle various ERP implementation tasks, such as delivering or supporting training.
- Data imported from previous systems into the new ERP database should be cleaned and organized.
- To prevent scope creep and the disruption of business productivity, stakeholders should be kept informed of the implementation process at each stage.
The essential processes are the same regardless of industry, yet successful ERP deployments will differ slightly depending on verticals and business requirements.
What to consider before buying an ERP system?
Although all ERP systems strive to achieve the same basic objective, not all provide the same functionality, usability, or quality. Before selecting an ERP software, make a well-informed decision by asking the ten questions below.
Q. In what ways will the software meet the specific needs of my organization?
A. ERP systems are not a ‘one-size-fits-all’ solution. Finding the proper fit will be determined by the industry, the size of the company, and other specific considerations. Conduct a needs analysis to determine which ERP software best fulfills the organization’s demands. Interview employees and examine current business procedures and activities in-depth to spot potential improvements and establish business needs.
Q. Which business processes will the program streamline or automate?
A. ERP solutions’ main objective is to increase workplace productivity. This frequently includes the simplification or automation of labor-intensive or manual business procedures.
Q. What strategies can we use to guarantee that the project’s budget and timeframe will be met?
A. It’s critical to comprehend the total cost of ownership (TCO), which comprises expenses besides the purchase price and implementation fees while evaluating an ERP system.
Talking to colleagues who have recently implemented an ERP system and can offer insight into realistic statistics to set expectations is one technique to assist with budget and timetable predictions. As with any company project, effective communication is essential to meeting budget and timeline targets so that all stakeholders know their responsibilities throughout the ERP implementation process.
Q. Which software deployment model will be used?
A. ERP software deployment strategies come in five basic categories: hosted, on-premise, public cloud, private cloud, and hybrid.
Many businesses find a hybrid solution, which integrates certain cloud services while maintaining some on-premises capabilities, an excellent option. However, because every business is unique, it is important to take deployment models into account before choosing.
Q. Does the ERP system support mobile devices?
A. Regardless of the type or size of the firm, mobility is a requirement in today’s business environment. As more individuals work remotely, they must have immediate and complete access to corporate applications. Businesses should search for an ERP system that enables users to use the software from any internet-enabled device at any time.
Q. What dependencies are there in the ERP implementation process?
A. It’s crucial to know up front whether you’ll need to purchase a database, operating systems, and other things to run the ERP. Even though it might not be a major deal, you wouldn’t want to be surprised by it.
Q. How do data analytics, data visualization, and reporting work with ERP?
A. ERP system will produce a ton of data about your company. The quality of the system’s data management and reporting tools will determine how simply and successfully you can use this data to make decisions and improve business operations.
Q. How simple is it to interface with systems from other companies?
A. You can certainly integrate ERP software with external platforms. These might be, for instance, at your bank or suppliers. You can relatively easily connect your ERP to external systems using standards-based (like RESTful) APIs.
Q. Can the software be altered and improved further?
A. Every company has specific operational requirements. Fortunately, ERP software can be altered to fit the demands of the company and remove functions and features that are unnecessary. The software can be further linked with additional systems to fulfill the organization’s ongoing demands as the firm expands.
Q. Do You Have The Right People In Your Team?
A. Long-term success of the ERP project depends on the correct mix of individuals contributing. Executive executives, project managers, and internal champions who will train their coworkers on effectively using the new system should be on the ERP team. Incorporating an unbiased third-party implementation partner to assist with each process phase is also strongly advised.
Speak with the Mayamitech IT Strategy Consultants
Many providers, partners, and vendors provide ERP systems. Identifying the services that best suit the organization’s requirements at a cost the business can afford is critical. Request a chat with a Mayamitech IT strategy specialist today to learn more about choosing an ERP system.
We can also assist you with the selection procedure. To find out more, contact us.
