Development, Thought Leaders

How to Understand and Implement ERP Software

January 29, 2020

by Aman Brar

Chief Business Analyst

ERP software implementation is becoming more and more important as we approach full digitization of business processes. Learn how to make your life easier by effectively implanting ERP software.

Enterprise resource planning (ERP) is the software that facilitates business process automation and workflow management.

ERP helps different departments and divisions in your organization communicate and share valuable information with one another.

ERP also facilitates data analysis and enables shared management of activities such as production, planning and scheduling, and manufacturing processes. It also helps with sales management, account and delivery management, inventory handling and supply and distribution maintenance.

An ERP solution integrates the various business operations being carried out in your organization to improve your overall productivity and reduce cost and save time significantly. Consider the benefits and challenges of ERP software to introduce it to your organization effectively.

How to Understand and Implement ERP Software

  1. Understand the Available Types of ERP Software
  2. Anticipate the Challenges of Implementing ERP Software

Understand the Available Types of ERP Software

To start, make sure you understand the versions of ERP software available and choose one that fits your business’s functional needs.

Generalist ERP

If you are looking for a cloud-based ERP solution, you are looking at generalist solutions as they can adapt to processes across several industries and offer you strong customization features. They can be integrated in any organization regardless of the industry it works in.

generalist erp

In this case, you will be working with an ERP generalist who is going to help you shorten your lengthy processes and work as an impartial advisor to you. They will be a trusted problem solver.

Open Source ERP

Open source solutions are ideal for business with a resident tech team within your company and who want flexibility to integrate their own apps into the ERP.

The source code of this kind of ERP software is publicly available. This open source model enables companies to access the ERP system’s code and then their own IT department can customize it instead of spending on the services of a vendor.

Vertical ERP

This enterprise resource planning software platform is ideal for startups and new or smaller companies that focus on specific niches and markets.

This platform is more ideal for accounting and manufacturing processes. Here you get features such as Master Data Management, Costing, Budgeting, Data Acquisition with Bar Coding, Warehouse Management, MRP, Integrated General Accounting, Production and Quality Control, Inventory Control, Detailed Audit Trails, Project Management, Task Tracking, Workflows and many more.

Anticipate the Challenges of Implementing ERP Software

ERP solutions may be good for businesses, but you should still consider the likely challenges of implementing ERP software:

1. Challenges Determining the Right Software for Your Business

There are a significant number of ERP systems available and it is difficult to decide which to pick.

Decide what software is right for your business by making clear requests to ERP providers. This way, they will have to give you a detailed explanation of how their system can achieve your goals.

2. Difficulties Securing Commitment From Managers And Associates

If your managerial-level staff refuse to engage with the ERP software, it will be worthless. Communicate with clear personal and make it clear that ERP software is vital to your success.

erp challenges

Also, make it possible for employees to provide feedback on how the ERP system affects their workflow. If you do, employees will understand that the ERP system is being enacted for their benefit.

3. Inadequate ERP System Training

If you have an ERP system in place the only way to completely utilize it is to have a skilled and well-trained staff using it. Train your employees en mass and in small groups in order to make sure that everyone can use the system to their benefit.

4. Insufficient Testing Functionality

If you can’t test your ERP software system, you don’t really know that it’s effective. Make sure you test your systems functionality so that any issues and shortcomings can be addressed.

Understand and Implement ERP Software Effectively

Enterprise resource planning (ERP) will advance your business.

By understanding the challenges, difficulties, and potential inherent in ERP software, your business can improve functionalities across a broad and beneficial range of business processes.

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