Reasons for Implementing ERP
The following are signs that you need a new ERP system right away: Growth Limitation You should implement a new system if your old software is limiting you when it comes to market expansion making it impossible to grow globally. Disparate Systems You should invest in a system that caters for everyone’s needs if your current software isn’t accommodating your employees and customers. Should you fail to give your employees the tools that will enable them to succeed or invest in meeting the expectations of your customers’, you’ll lose them to your competitors.
Enterprise resource planning systems are usually designed around a defined data structure with a common database. The main principle for EPR systems is their central collection of information for wide distribution. ERP systems offer access to a company’s data from various activities using common user experiences and definitions. Instead of having numerous standalone databases with inventories of spreadsheets that are disconnected, EPR systems manages the data making it easy for all users to create, save and use the same information collected through common processes. Everyone in your organization will be confident that information is up-to-date, correct and complete due to a centralized and secure data repository. You’ll also be assured of the integrity of data for every work performed in your company without sending spreadsheets with errors.
Benefits of Custom ERP Software
When you integrate your organization’s data and processes into EPR systems, you’ll be able to improve workflow by aligning separate departments resulting in significant savings for your bottom line. Below are examples of business benefits you will experience: Storing Data in a Centralized Location ERP software will allow you to keep your data in a single location. This will help you keep data up-to-date and consistent. Enhanced Security An ERP system takes care of data security. It improves data consistency and accuracy while eliminating possibility of data leaking. This is because access rights aren’t just granted to any type of user. Back Office Automation You’ll increase your organization’s overall efficiency when you use ERP system. This system will enable you to collect data easily, eliminate manual operations and streamline the processes of your organization. Regulatory Compliance ERP software will help your organization comply with regulations. The system can be designed with compliance built in upon request. Customer Service A comprehensive ERP software will increase the quality of customer service since it makes it easy to access customers’ information. Enterprise planning solutions also helps customer service staff to interact effectively with customers. Comprehensive Reporting Every user of ERP system can create customizable reports easily. Thus, you’ll be able to make business decisions that are important more quickly since accessing and analyzing data is faster.
Key Modules in ERP System
The ERP system development and deployment becomes useful when its modules are integrated easily with other software that’s readily available in a company. Below are major modules of an ERP system that your organization will require: Supply Chain Management This module generates reports about finances and materials as they keep moving down the supply chain. HR Management This part of an ERP system generates reports after collecting a particular date. Reports include training and professional development, recruitment of employees, mediation and exit interviews as well as performance reviews. Finance This module generates reports based on the financial data collected. Reports include quarterly financial statements, trial balance data, ledgers and overall balance sheets. Inventory Management It generates data based on reports about non-capitalized stock and assets.
Benefits of ERP software in Various Industries
ERP software impact isn’t limited to specific industries since several industries have already implemented this system while others are looking for reliable ERP systems. You can’t overlook the impact of ERP software on your organization or business whether you’re a healthcare institution or in the hospitality industry that wants to streamline its business processes. Here are some examples of industries that have implemented ERP software.
1. Healthcare An ERP system in this industry provides great support for everyone and everything. It takes care of supplies and controls, patients’ record, compliances, payroll. It also enhances productivity, improves customer support, and optimizes production and inventory management as well as providing comprehensive analytics due to producing numerous reports such as statements of expenses and income reports. Benefits of ERP to the Healthcare Industry
- Streamlines healthcare procedures and processes
- Provides secure remote access to patients' records
- Reduces running costs so as to increase profitability
- Improves patient-care in order to stay in competition with other healthcare providers
2. Hospitality The success of hospitality business depends on many aspects. If one of them fails to respond in the required manner, customers might end up being dissatisfied. An ERP software will help businesses in the hospitality industry save time, automate most of their processes and also reduce stress. Benefits of ERP to the Hospitality Industry
- Maintains history of guests that helps staff to manage customers better thus increase retention rate.
- Replies to inquires such as charges, check-ins/checkouts and real-time availability of rooms.
- Makes work easy for managers since it provides a way to keep monitoring the dashboard on all the ongoing processes.
- Has user-friendly modules.
7 Phases to Enterprise Resource Planning (ERP) System Implementation Process
Implementing an ERP system successfully is labor intensive and also one of the costly business decisions any organization can embark on. With our experts having many years of experience in ERP software implementations, I’ve outlined the process we usually follow when working with clients.
1. Study Your Current System
The success of implementing a new system lies in the data of your existing system. You should understand your current system to enable you know the elements that are working and those that aren’t doing well. Before buying a new ERP system, define the goals you want the system to achieve. Defining and setting these goals should be driven by your current system. The system may be non-supported or non-compliant. Your business may have also outgrown the system; however, the processes taking place inside the system should be understood. For instance, you may want to see X% customer service level. But if you don’t understand the cause of the current figures, it will be difficult to make improvements. If you don’t understand the current system, the new system will continue to produce the same results since it will be implemented using the old processes.
2. Choose the right development company
After defining the goals you want the new ERP system to achieve, look for the right development team that has experience developing custom tailored management system solutions.
3. Cost of ERP
You should find out the cost of implementing ERP to enable you know if you can afford the total cost. The cost includes organizational change management, software development, employees cover for project members, hardware, and training. Your ERP developer should provide you with an estimate and clarify what is included and what’s not included in the budget such as data migration. Freelance consultant and ERP software non-related costs should also be noted down in the control budget document. Once your business has a budget, it should be controlled by tracking constantly to enable you to compare the budget at every stage and establish project milestones.
4. Resources and Team
You’ll require a team and an internal project manager in order to implement an ERP project successfully. The key members should be in areas of responsibility and take ownership project through involvement. They should also be positive towards the ERP change. The key members should be influential, promote the project and overcome resistance. They should be knowledgeable in executing the processes and make decisions based on the overall performance of the business. The employees involved in the ERP implementation process are a resource for the business. However, if they’re not backed by the management; they’ll focus on daily workload instead of the project requirements.
5. Training and User Acceptance
Before conducting any training, the ERP partner should understand the business while the business should understand the software so as to develop a training plan that caters for the business needs. This may include scheduled classroom sessions targeting entire departments or departmental members. Training may also be conducted for project team key members. The processes should be agreed beforehand with key team members before training end-users to ensure delivered sessions meet the requirements of the business. The training should involve hands on sessions allowing users to test and have access to the new system after following given instructions. Once training has been undertaking, the business should ensure that their staff has embraced the system and knows how to use the system to enable the business meet its needs. Scheduling a demo will help your employees understand how the new ERP system works. This way, they’ll feel they were part of the decision process; making the implementation easier.
6. Data Migration
You should decide the type of data you want migrated from your old system and into your new system based on volume and complexity. If you’ve a lot of item records, they’ll be migrated but if the items are few, they’ll be keyed. There are also factors that need to be considered before migrating data such as compatibility of the old system with the new system and poor quality of data. The best way to deal with these issues is to create required settings during the export routine if possible of the legacy data. Alternatively, you can key the settings into the exported data for import. Though the process of retrieving, transforming and importing data vary from one system to another, the IT staff will be involved in the process. The final data should be loaded in advance before going live and end users must test several times. One full import run should also be undertaken to ensure issues arising from a full import are well understood and resolved before the live date.
7. Going Live and Ongoing Support
At this stage, the goals that were defined during the implementation process should be reviewed for achievement and relevancy purposes. Doing nothing after going live will see the business slip backwards and fail to achieve its objectives. The system should be reviewed constantly while applications and processes should be evaluated for suitability. If the business discontinues the process of going live using the new software, the possibility of installing a new system in the near future to meet their needs is likely to happen again. However, our experts at Netcore Agency will walk you through the entire process. We have been developing and implementing custom ERP systems while providing ongoing support for clients in various industries for many years. The success of your new system is guaranteed.
Why Netcore Agency
We have successfully developed a number of cutting-edge systems and gained a lot of experience in developing custom ERP solutions for clients in various industries such as Healthcare, Business, Financial and Customer services We pay attention to the assessment of your organization’s processes in order to develop a system that will cater for your business needs. We also offer in-house training and technical support during and after system development.
Get in Touch
Contact our team now and request a quote. We’ll answer all your questions and provide you with the right estimate for your organization. Our experts are on standby ready to answer your questions. Do you have further questions regarding how to implement enterprise resource planning (ERP) system in your business? Ask away in the comments section below. I read and reply to every comment.