Enterprise resource planning (ERP) may be one of the most important aspects of modern business, but that doesn’t mean it’s easy to implement effectively. If you’re new to ERP and aren’t sure how your organization can make the switch, consider these five steps as your guide to seamless ERP transition
An Introduction to ERP
The benefits of enterprise resource planning are plentiful. You’ll have access to all your data in one place, which makes it easier for you and your employees to make decisions with the most up-to-date information available. You’ll also be able to integrate your legacy systems into this new system for better visibility of your business.
Once you’ve migrated everything over, you can start leveraging the reporting features that are built in. These help you see what’s going on with every aspect of your business so that no stone is left unturned when it comes time to make improvements or changes.
How Much Does ERP Cost?
- An ERP implementation can cost as little as $10,000 for a small company and as much as $250,000 for enterprise-level companies. The initial cost is offset by the increased efficiency of the business once it’s up and running. After all, what good are sleek, new office suites if you’re too busy dealing with HR and accounting woes?
- Maintaining high customer satisfaction rates takes a lot of time in today’s competitive marketplace. In fact, many companies don’t even think about implementing ERP until they start struggling to keep up with demand from clients.
- A common misconception about ERP is that it’s expensive; in reality, there are plenty of solutions for businesses on all budgets.
- What may be more costly than switching to an ERP system is staying with your current setup and enduring the consequences – reduced productivity and lackluster customer service are just two possible outcomes.
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What Can ERP Do For My Business?
ERP software is designed to make your business run smoother. It can help you manage everything from HR and finance, marketing, and customer service. Plus, it provides seamless integration between all of these functions so that your organization stays coordinated and on track. Here are some examples of how ERP software can help you run your business:
- Marketing, sales, and customer service – A good ERP system will allow you to create customized reports for each function so that all departments stay informed with the latest data. You’ll also be able to streamline campaigns by creating integrated email campaigns in one place and sending them out automatically. Finally, the software will give you insights into what’s working or not in real time so that you can make changes as necessary.
The Benefits of Going Cloud-Based
No matter what industry you’re in, there will come a time when it’s necessary to upgrade your software. If this is the case, make sure you know the implications of upgrading and consider the following before making your decision.
- What are the benefits of upgrading? – What are the drawbacks? – Will my staff need additional training? – How much more can I do with this new system as opposed to my old one? – Can I afford this software and if so, for how long? – Am I ready for change or would I rather stick with what we have now?
How Do I Choose an ERP System?
You should always do your research before implementing any new software into your company. Some good things to ask are: What are the costs? How will this affect my employees? Can we implement the new software ourselves or do we need outside assistance? Do we need to hire someone with experience in this software so that they can train our employees and help us get started? And finally, can we afford it?
Considerations Before Implementing New Software
When evaluating software, you’ll want to consider the following factors before selecting enterprise resource planning (ERP) software for your organization. Some of these considerations are more important than others and you may find that only one or two factors matter most to you.
- Can the system integrate with other systems, such as HR?
- What is the company’s timeline for implementation? Is there an all-at-once approach, or will it be phased in over time?
- How much customization is available? Will an existing solution need to be heavily modified in order to make it work with your company’s specific needs?
- What is the cost of implementing the system and then maintaining it on an ongoing basis?
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Tips for Improving Your Current Business Systems
- Create an inventory of your current systems. This can be accomplished by sitting down with your team and listing what software you’re currently using, how it’s being used, and when it was purchased.
- Determine if the system is still worth using. If the system is not really serving its purpose or outdated, then find out what other options are available for purchase that better suit your needs.
- Learn about the new software before you buy it. Keep in mind that some packages are designed for specific industries or functions and may only be able to do one thing, while others offer multiple capabilities depending on how they’re set up.
- Make sure the company you’re buying from has a good track record of customer service and support.
A Final Note About Working with An Implementation Company
It’s important that you select an implementation company that has experience in your specific industry, so they can offer you the best advice on how to make the most of your ERP. They should also be able to help with training and data conversion, which is invaluable for making the transition as smooth as possible.