By the year 2020, the global ERP market software is expected to exceed $41.89 billion. Those who haven’t used an ERP system before will find it difficult to realise the importance of ERP systems.
In this realm of digitisation, it becomes crucial for enterprises and small businesses to make use of all the advance cutting-edge tools. Enterprise Resource Planning System is one of them.
The only way through which organisations can survive in this extremely saturated market and can ensure scalable growth is through leveraging an ERP system.
Where can an ERP system be used in your business?
Businesses needs to emphasise on both the short-term and long-term goal of company. Apart from that, analysing the potential challenges is also crucial for any business to ensure scale up growth. An enterprise or an organisation can identify the need to integrate an ERP system based on the analysis of the business current system and processes.
Before installing and implementing an ERP system into a current business, these are the factors that should be taken into account:
- Existing business processes and systems aren’t functioning properly.
- Current business system contains too many inefficiencies and interdependencies.
- Day-to-day business processes are difficult to manage and leads to loss of revenue or too much overhead for a business such as the accounting process, financial planning and budgeting.
- Current IT infrastructure of the company contains too many security loopholes and there isn’t any effective security measure to mitigate the risk.
- Cutting-edge technologies such as blockchain, artificial intelligence and IOT cannot be integrated into the current business system.
Why organisations should use an ERP system:
Enterprise Resource Planning Software is used by organisations to effectively manage their day-to-day operations, but in what way it is better than all the available solutions? The unique attributes of an ERP software make it highly competitive in the market.
Here are the reasons why should an organisation make use of an ERP system:
1. Save Money in the Long-Term
Even though many software vendors have dramatically reduced the prices of an ERP system, it is still a big investment. For many organisations, a large initial cost can be frustrating. However, once they’ve managed to harness the true potential of an ERP system, they’ll realise the ERP system has provided them better returns over their investment.
2. Enhance Collaboration
This feature of the ERP system entirely depends upon the program you are currently using, but generally all ERP systems improve co-ordination within an organisation.
A centralised database is the most appealing feature of any ERP system. With this centralised database, you can provide all your employees a single source of truth to work from.
3. Enhance Productivity
Tedious tasks are completely unavoidable with traditional methodologies. Tasks that are extremely labour-intensive such as generating reports, monitoring the inventory level, timesheet tracking and order processing.
Besides time-consuming, all these highly repetitive and tedious tasks dramatically reduce employee morale and make your organisation more prone to human error.
If you deploy an appropriate an ERP system for your business, it will automate the most tedious tasks. The central database system within an ERP can automate the most tedious and highly repetitive tasks and enable the system to perform complex calculations within a couple of seconds.
How to select an appropriate enterprise resource planning system for your organisation:
Selecting an appropriate ERP system is crucial for your business. Enterprise Resource Planning Software is delicately designed by using the most sophisticated software development methodology to automate and computerise the core business processes.
These are the steps that will assist you in selecting the right ERP system for your business that will have a profound impact on your business.
1. Make sure your ERP system is compatible with your existing software
An Enterprise Resource Planning software streamlines the core business operations. This means that existing software will either have to be completely replaced with the specific component of ERP or the current system will have to be integrated within the ERP, facilitating the flow of data from one system to another.
For instance, if a business is already using CRM software to effectively communicate with their potential clients or customers, this CRM will either have to be completely replaced by the CRM module of the new ERP, or this CRM will have to be integrated within the new ERP.
2. Prefer cloud-hosting unless you have a server room
An ERP system that works only on the desktop computer of your office often frustrates your company employees and team members.
Your ERP system must be accessible via different portable devices such as smartphones and tablets. While selecting an appropriate ERP system, cross-platform compatibility of the system should be taken into account.
Every business needs to make financial decisions in order to fulfill their financing needs. An intelligent business investor always calculates returns over investments before making any severe financial decision. Undoubtedly, implementation, installation, and deployment of an ERP system is an expensive exercise.
Before deploying any ERP system, do a comprehensive research of the implementation and integrating cost. In order to effectively calculate return over your investment, you need to separately compare the features and functionalities of different ERP systems.
Top 3 ERP System Sofware:
According to The Economist, all large scale organisations make use of ERP systems to skyrocket their performance.
While many large scale organisations are still leveraging traditional application software for the businesses, but a large number of organisations reap the benefits of ERP systems.
These companies have managed to improve their accounting process with the aid of ERP systems. Apart from that, these companies are also discovering the potential use cases of cutting edge technologies like IoT and artificial intelligence in their businesses.
1. NetSuite ERP
NetSuite ERP is a cloud-based software that provides a diversified collection of tools to enterprises to manage their revenues, financials, inventory, billing and a lot more.
NetSuite is developed and operated by Oracle and is one of the most widely used ERP systems across the world.
The ERP system comes with the end-to-end solution specifically designed for the fast-growing companies, small and medium enterprises, and large scale organisations. All the enterprises leverage this phenomenal ERP software to streamline their operational processes and to reduce overhead.
Scoro is a cloud-based business management tool particularly designed for small and medium enterprises. Besides highly versatile, their ERP software is geared towards information technology, consulting and advertising.
Scoro software comes with the built-in feature of project management, work scheduling, collaboration, quoting and billing.
The UI is pretty much self-explanatory and counter-intuitive, even the tech-averse individuals can easily manage the system.
Apart from that, Scoro comes with the most potent CRM solutions too. It stores the contact detail of both suppliers and customers in a way more robust and retrievable manner.
3. Sage Intact
Sage intact is the cloud-based financial management system that can fulfill the requirements of the company that demands both the ERP and accounting systems. This software comes with all the cutting-edge technologies that can simplify the day-to-day tasks and accounting operations.
Sage Intact is the most prominent ERP system geared towards providing core financial tools and features. Apart from that, this software has numerous advanced solutions that can enhance the software’s functionality. Sage Intact has built-in tools for project accounting, inventory management, and contact subscription.
Limitations of Enterprise Resource Planning System
ERP systems can address the requirement of manufacturers, large and small scale enterprises, and can aid in the manufacturing process.
Even though the benefits of ERP system outweigh its limitations, a thorough understanding of all these limitations will assist large organisations and small business owners in decisions making.
– Huge Implementation and Installation Cost
An ERP system is extremely expensive to install and implement. It demands huge investment of a time and money from an organisation for its proper setup and functioning. In addition, an ERP system demands considerable amount of time from an organisation that in some cases leads to the loss in revenue and productivity of a business because the extensive training has to be provided at an expense of a business.
Aside from an initial installation and an implementation cost, different IT vendors may also charge for the upgrade and renewal of an existing ERP system. Based on the cost associated with the implementation and installation of an ERP system, they are not always viable for small organisations.
– Too Few Customisation
ERP systems can be customisable up to a very minimum extent. If excessive ERP customisation is required it may slow down the project.
The return which you gained over your investment on an ERP system cannot be calculated immediately soon after the ERP system is deployed.
– Increase Operating Expenses
Implementation of an ERP system will dramatically increase the operating expenses of a business such as a cost associated with new IT infrastructure, upgrading the WAN links, and many more.
The potential outcomes of ERP systems outweigh the time and cost incurred in installing, implementing and deploying it unless you select an appropriate ERP software.
With extensive research and thorough understanding, you’ll be able to find the most appropriate ERP system for your business.