How To Successfully Explore An ERP Implementation
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Enterprise resource planning, often simply referred to as ERP, has become an increasingly important software in today’s business environment.
ERP software plays a vital role in consolidating your data and streamlining the process of running your company.
Over time, organizations may find themselves running many different software systems across multiple departments. These systems may have been inherited under acquired companies or pieced together to be able to work with partners and vendors. Yet this lack of conformity can have a detrimental effect on business process and operational efficiency.
If you’re running a large enterprise sitting on a legacy on-premise or cloud based software you may be asking … how do you make ERP implementation a success? And if you’re a middle market company or VC-backed startup, you may be asking the same question.
become more efficient than ever before
A few key practices ensure that your selection and proper use of an ERP solution will have a positive return on investment for not only your profit margins, but your employees.
First, it’s important to realize that much of the work regarding ERP implementation takes place before you even begin to use the software. ERP utilizes data from a wide range of business tasks, ranging from product planning to marketing and finances. Because of this, implementing ERP software often results in a change to several of your company’s practices, especially in regards to data collection and reporting.
Preparing for these changes is key. Prior to ERP implementation, businesses should conduct an in-depth analysis of their processes so they can identify areas where modernization and other changes are needed. This will make it easier to adapt processes in accordance with what the ERP software provides. Disconnects between finance, sales and production caused by multiple software platforms, allow for increased errors and wasted employee time trying to fix problems, or find needed information.
ERP system functionality includes the software pieces for Customer Relationship Management (CRM) and sales automation in order to streamline sales processes and stop work redundancy. By identifying and addressing ineffective processes in advance, your company will be better prepared to make the improvements offered by an ERP solution.
ERP software is geared to help companies bring their activities in line with industry best practices. Some businesses — especially those in unique niche industries — may find that some customization is necessary to fine-tune their results and gain a stronger competitive advantage.
Security also serves as a main value point when making the transition to a digital enterprise. When data is entered in your companies ERP software it’s then securely stored in the cloud. Your organization’s data can therefore be recovered in the event of a disaster without the need for an IT team consistently performing data backups. In addition, no matter where your employees are, they’ll have access to the same data, which minimizes the risk of errors and ensures that everyone uses the most up-to-date information.
Since there’s no need to install applications for cloud-based software in SaaS mode, systems can often be implemented in a shorter timeframe compared to traditional systems. If the ERP software chosen fits your needs without having to be customized, you’ll have the ability to take full advantage of it’s much more quickly, which is a clear benefit for growing SMBs and middle market organizations.
While a typical ERP implementation requires a decent amount of work, taking these necessary steps will allow your company to make better use of its data and become more efficient than ever before.
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