Will an ERP System Work For Your Business Needs?
New research shows thatERP projects today are much more successfulthan in the past. Coupled with the fact that cloud ERP software options available on the market today are easier to implement, and keeping in mind the benefits listed above, there’s a real business case for ERP. Timing is also an important aspect to consider. In addition to the trends we mentioned at the beginning of this article, you can start by reviewing the five questions below to see if it’stime to start considering ERP softwarefor your business.
- How accurate is your business data?
- Implementing comprehensive ERP software not only provides access to important data, ERP also enables a better process for collecting and analyzing data
- Are your business systems connected?
- Moving to one company-wide ERP solution can help improve internal processes – one common platform fosters better internal communication
- Better processes and communication leads to increased efficiency and enhanced company performance
- Is your company growing?
- As companies increase in size it’s easy to quickly outgrow existing processes and technology. Growing pains are a good problem to have, but like all other business challenges these issues need to be addressed in order to continue the path towards future progress. A comprehensive ERP solution can help.
- How satisfied are your customers?
- Disruptions internally – growing pains, problems between production and sales, or the inability to access important data – affect the customer experience. Modern ERP solutions help you save time and meet customer expectations.
- Do you need to reduce costs?
- ERP software enables you to be more cost effective through gained efficiencies in these areas (and more):
- Faster financial close
- Improvedinventory planningand accuracy
- Accurate forecasting
- Reduceddays sales outstanding
- Shop floor optimization
- Reduced purchasing spend
- Reduced freight spend
- ERP software enables you to be more cost effective through gained efficiencies in these areas (and more):
What Types of Businesses Benefit the Most from ERP Software?
The versatile nature ofERP software allows companies in a variety of industries and of various sizes to implement solutions based on their business needs. Major industries that use ERP include:
- Manufacturing
- Distribution
- Professional Services
- Construction
- Industrial Services
- Service Business
- Healthcare
- And more
One manufacturing executive we’ve worked withsaid implementing ERP (in their case,Oracle JD Edwards) gave the company a “robust platform” to manage and control their manufacturing processes. “The tools and information available in the system will allow us to better manage our distribution and manufacturing businesses.”
Professional services is another industry where ERP is often used and see copiousbenefits of ERP software. The needs of these organizations differ from manufacturing and distribution. Businesses in this industry are often project-based and need tools for project planning and execution, managing project costs, strong customer relationship management and more.
The CIO ofa project-based company we recently worked withto implement a cloud ERP system commented: “By moving our project management process to the cloud, we can keep up with our business growth and continue to serve our clients to the best of our ability.”
How Does ERP Software Improve Business Processes?
ERP systems solve many problems you may be facing, including the need for:
- One source of truthas one master system of record for all important company data
- Automating manual processes, such as invoice creation, routine communications, financial report generation, product and service delivery and material requirements planning
- Better visibility into all aspects of the supply chain, increased efficiencies and improved productivity
- Improved business data security, whether storedon-premise or in the cloud (although the majority of businesses today choose Cloud ERP)
Next Steps for ERP Software Selection
ERP selectionand implementation processes are not for the faint of heart. Choosing the right Enterprise Resource Planning system can be complicated, and often there is a lot at stake. You want to make the best possible choice for your business. But there are ways to make it easier on yourself and your team. There are many factors to consider, below are some of the top factors recommended for anyone thinking about a new ERP.
- Define why you are doing the project.
- Determine who will be involved.
- Find an ERP partner who you trust.
