Enterprise resource planning software can help to drive a business towards more efficient practices. If you are looking at how to grow your business with data integration, ERP will probably be high on your list.
However, due to their complexity, you probably also have a number of questions. Unlike downloading a mobile app, or purchasing a game from Steam, ERP systems require some time to implement.
There is a necessary process to run through to find the correct ERP system for a business and to match their needs. Here below are some of the questions that you may have.
This is one of the main questions that gets asked by anyone who is looking for an ERP system.
Hiring the best ERP consultant will result in workshops, software testing, impartial advice, training, and help with change management.
It is possible to implement an ERP with in-house staff, but a consultancy will bring experience and knowledge that your own IT department will likely lack.
Many smaller companies might balk at the cost of having in-premise servers or paying for an ERP outright.
The options for ERP deployment are in-premise, cloud-based, or hybrid.
A hybrid system allows for a mix of both on-premise servers and cloud-based for remote workers. How you choose your ERP to be deployed will depend on your budget and your requirements.
Cloud-based ERP systems may be cheaper than having your own dedicated server, but you may prefer the security of keeping everything in-house.
A concern for all businesses these days is the safety of their data. Hackers and cybercriminals are constantly looking for weaknesses to exploit in networks.
ERP systems help to share data throughout a business and as such need to be secure. It was revealed in July 2021 that Amazon received a huge fine for breaking GDPR rules.
ERP systems employ data encryption to protect your clients’ and employees’ information, as well as sensitive company data.
The bottom line with any change in a business is whether it will help the company financially. Profits are, after all, the way that companies survive and expand.
A properly implemented ERP should help to make certain processes run more efficiently. This in turn should help with productivity, and therefore increase profits.
By having real-time access to inventory data and shipping times, any problems such as bottle-necks can be addressed. This will lead to a faster turnaround, and more sales, with more income.
ERP Focus states that an ERP may cost up to $750,000, however, there are examples running into the millions.
For smaller companies though, ERP systems will cost far less and require much smaller budgets. It is estimated that most companies budget around $7,000 for a new ERP system. Employing an ERP consultant can help reduce mistakes during the implementation process and therefore keep budgets on track.
Considering the lifespan of an ERP system may be more than ten years. There is much scope for the system to not only pay for itself but to help bring in extra revenue.
One of the main points of implementing an ERP is to bring all facets of a business together.
Many companies that merge discover that they then have the problem of integration. Mergers often take place between companies based on different continents, using different languages, and with their own systems already installed.
An ERP can help to integrate all the areas of these companies together so that data is shared to help with workforce planning, human resources, and customer relationship analysis.
A good ERP will allow this data to be shared in real-time, which brings true integration between different areas of a business, no matter where they are located.
When it comes to the areas of efficiency and profitability, automation is very important.
Resource planning software can help in many areas of automation, and ERP systems, in particular, are heavily linked to finance.
Many tasks that are carried out by workers can be completed by an ERP system. This then frees up employees to carry out more important work instead of tedious work tasks.
Sales orders are a vital part of a company, and automating processes related to this area will mean less admin and faster processing. This can lead to happier customers and more orders, which links back to increased revenue.
When implementing any new system, choosing an IT support company is essential to getting everything right. As far as ERP systems are concerned, consultants are equally as important to make sure the transformation runs smoothly.
An ERP consultant can answer many more questions than are listed in this article, and for a system as complex as these are, gaining professional help is vital.