Whether it is your first time to adopt one, or you intend to migrate to a more upbeat, state-of-the-art version of your current one, choosing the right ERP software requires significant decision-making on your part. It entails you to be subjective, objective and critical all at the same time. Not only is it a huge investment for your business, it will also necessitate full commitment and partnership for long-term.
It is downright overwhelming to even think of getting a comprehensive, expensive and long-term type of system for your company. You would always wonder if you’ve thought ahead enough to mitigate the risks involved in complying with an integrated solution. There is doubt whether it could really address all your current needs, and if it will conform to your future requirements for growth and expansion. Now that we see that technology evolves faster than how it was before, how can you be sure that the ERP software you’ve chosen will grant ROI before it becomes outdated?
Let this article help troubled business people like you to maximize the benefits of implementing an enterprise resource planning solution software. You can also gain tips on how to avoid the pitfalls while choosing an ERP software since it is supposedly a long-term solution. This will also guide you in choosing the right ERP software that will accelerate your business through a number of key competitive advantages in respective industries.
Why Do I Need an Enterprise Resource Planning Solution?
An Enterprise Resource Planning (ERP) software is meant to collaborate all your company’s existing systems like human resource management and sales and marketing into one integrated and centralized management solution. The point of the integration is to centralize all data and streamline the workflows for better facilitation, processing, and interpretation. The goal is to come up with a system that not only provides a common ground for activities, processes, and decision-making to commence but to unite your employees in speaking a common language in terms of technical as well as visional aspect. This promising perspective of having an ERP software can be best described with the following general benefits:
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Puts value in your data
Without ERP, there is no point of context when it comes to the data you capture. It can only be meaningful if it will be directed towards its purpose for the company’s growth. Data will only be rendered valuable when mined, processed and interpreted, which can aid you with important decisions. It should, in turn, help your business reach its goals, and achieve a series of competitive advantages.
Technology advancements incorporated in ERP systems are manifested in the recent Global ERP Revenue forecast by Statista.com. A promising $32.6 billion worth of revenue is expected to reach by 2016.
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It makes your processes transparent and streamlined
An integrated solution is usually embedded in a dashboard. This helps you monitor your business’ processes side by side, and see how each performs in relation with each other in real time. Having this kind of perspective also allows you to access and manage processes according to their relationship with each other or individually.
ERP systems are known for their rich capabilities to track and monitor data in real time, in the eyes of your designated Key Performance Indicators (KPIs). This also ensures that you preserve the integrity of your workflows and activities by identifying duplicate or inconsistent data entries across the system.
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ERP systems are still maturing
This can either be a setback or a benefit to your business, depending on how well your negotiations and settlement with your ERP provider went. Again, the need to stress out its long-term impact must be established in order to address some future risks or changes and to properly adjust in a seamless way as much as possible. On the positive note, since the system and technology are still growing and evolving, expect more improvements in the area of integration capabilities, dynamic functionality, industry-specific functions, advanced communication and competitive pricing.
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It is cost effective
Why is ERP software important? An integrated solution could be cost-effective in the long run since you deal with one centralized system and service provider in general. Depending on the negotiated package you get, it may even include upgrade options and after-sales service maintenance and implementation assistance. Most ERP software providers also conduct training for your employees to give them a heads up in maximizing its usability. Having an automated and reliable system to use can significantly uplift your employees’ efficiency as well, so they can divert their time to more productive work.
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Brings up a competitive advantage
How ERP software helps decision makers? ERP systems can give you a deeper insight into your back-office processes, which enables you to make data-driven and accurate decisions, work faster, and be more efficient and smarter. This is going to be your secret weapon in establishing an advantage over your competitors.
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Potential integration with mobile systems
While it is a relatively new concept in the field of ERP, having the capability to effectively integrate into or operate in a mobile-compatible system will give it another dimension when it comes to functionalities.
The ERP system’s initial leap towards migrating to cloud is one of the most astounding advancements in its field, starting from enterprise cloud storages. By making the system scalable and easily accessible, the more its benefits are felt and realized. With a centralized database parked in the cloud, we can be more confident in the system’s capability to maintain its integrity. If mobile integration will be possible, you can imagine how powerful and efficient your ERP system will be.
According to Gartner, the time for ERP systems to migrate to cloud was already reached in 2014.
Regardless of what kind of software you are implementing, whether an integrated or a single solution, you can only maximize its benefits if you fully utilize it. Benefits are subjective, at least for a software, and that is why it is best to derive your list of priorities, non-negotiables, and must-haves when it comes to functionality and usability to your business. Lay them all on the table when you start researching and negotiating with your options. Remember, no one knows your business like you do, and you know by heart what it needs to stay on track to meet its goals and grow.
How to Avoid the Pitfalls in Choosing the Right Software?
Getting an ERP system is a major decision for any company. Making a mistake in getting one can cause you not only millions of dollars but also delayed growth acceleration for your business. It can also cost your business employees, giving them something unusable and totally unnecessary.
Who sells ERP software? Here are some useful tips to follow when looking for the best deal in ERP systems for your business:
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Know what you are looking for
Getting a new system or integrated software as big as ERP connotes a strong need. Therefore, this should be addressed first and foremost. Implementing an ERP system should not be just because you want to get along with the trend. It should have a bigger purpose that will drive a life-changing impact to your business nonetheless.
Adopting an ERP system supposedly is part of your business’ long-term strategic plans. Your business processes must be “tamed” enough to accommodate a big adjustment such as this. In knowing your business process in a more in-depth way, in the sense that you understand its capabilities, needs and rooms for improvement, you will be able to acknowledge your urgent needs and possible obstacles to encounter in the implementation. Having 360-degree first-hand information about your current business operations and the future track will lead you in coming up with the most sensible criteria.
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Evaluate and exhaust your options before settling with one
The market for ERP systems is robust enough to give you a substantial number of options. Make sure that you have given enough time for research and negotiations before settling with one. Remember that adopting an ERP system is like entering a long-term commitment that you cannot afford it not to work.
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Look for reliable references
To help narrow down your options in a more sensible way, seek reliable references or recommendations from peers. It is best to consult colleagues in the field, especially when you are looking for an industry-specific ERP solution.
There are vendors offering the same service and packages in the market. In this case, you should check their level of experience and area of expertise and see if they match your requirements.
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Expensive or Cheaper?
With ERP systems, the price tag is not much focused on, except that you should be wary of its corresponding features that will best suit your needs. The relationship between ERP software cost and ROI is a subjective matter, and you can maximize it only if you are able to fully utilize its capabilities and features and realize a significant impact on your business’ performance.
Generally, EFP systems are expensive to get and implement. Expect a hefty price tag, and you would need a sustainable budget to get one.
How to Find Your Best Integrated Solution Software Match?
Nothing beats a personal meet-up and elaborate discussion of your options. Before getting into any contract, make sure that you understand all the facets involved, which include all deliverables, expectations, training and future upgrades or improvements. Your ERP software vendors should lay out all your possible options based on the exhaustive list of criteria and requirements you submitted. From there, you could discuss the pros and cons of each, and you should mutually come up with the best option.
Getting an ERP software is a kind of strategic and long-term partnership with a supposedly robust and reliable service provider. The benefits must be your driving points of success to gauge if you got the best value for your chosen system.
To provide you with insights, feedbacks and ratings through clients’ perspective, see reviews of the best ERP software from CrowdReviews.com.
Jeev Trika
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