ERP is an industry acronym for Enterprise Resource Planning. Broadly speaking, ERP refers to automation and integration of a company’s core business to help them focus on effectiveness & simplified success.
An important goal oF ERP is to facilitate the flow of information so business decisions can be data-driven. Most manufacturers judge an ERP implementation by the following metrics: initial expense, ongoing operating or maintenance costs, return on investment, and time to value.
ERP is most frequently used in the context of software. As the methodology has become more popular, large software applications have been developed to help companies implement ERP in their organization.
Benefits of ERP for your Business
- Integration across all business processes – To realize the full benefits of an ERP system it should be fully integrated into all aspects of your business from the customer facing front end, through planning and scheduling, to the production and distribution of the products you make.
- Automation enhances productivity – By automating aspects of business processes, ERP makes them more efficient, less prone to error, and faster. It also frees up people from mundane tasks such as balancing data.
- Increase overall performance – By integrating disparate business processes, ERP ensures coherence and avoids duplication, discontinuity, and people working at cross purposes, in different parts of the organization. The cumulative positive effect when business processes integrate well is overall superior performance by the organisation.
- Quality Reports and Performance Analysis – Analysis on ERP will enable you to produce financial and boardroom quality reports, as well as to conduct analysis on the performance of your organization.
- Integrates across the entire supply chain – A best of breed ERP system should extend beyond your organization and integrate with both your supplier and customer systems to ensure full visibility and efficiency across your supply chain.s
- Gives a global, real-time view of data that can enable companies to address concerns proactively and drive improvements.
- Improves financial compliance with regulatory standards and reduces risk.
- Enhances customer service by providing one source for billing and relationship tracking.
- Automates core business operations such as lead-to-cash, order-to-fulfillment, and procure-to-pay processes.
ERP Implementation Best Practices
Select the Best ERP Implementation for Your Business
You can choose to build your own custom ERP and program it from the bottom up. You can also purchase on-premise ERP software and install it on your company’s computers and servers. Keeping ERP technology current is key to maximizing its potential, so it’s essential to choose a system deployment option that’s easy to update and will preserve custom features.
Get Executive Buy-In and Build Consensus around ERP Implementation
Educating leadership about what ERP implementation means for the company. More than just software, ERP technology can transform the business, an idea that executives must support before moving forward with any deployment effort.
Select the Best ERP Implementation for Your Business
Get Executive Buy-In and Build Consensus around ERP Implementation
Set Realistic Expectations for ERP Implementation
ERP software is powerful technology that can streamline processes, improve visibility, reduce costs, and completely change the way that your company does business—but it won’t happen overnight. ERP solutions encompass many complex front- and back-office systems, from accounting and inventory management to ecommerce and CRM, which need to be integrated to create a seamless experience for end users.
To accelerate the implementation process, make sure your project is scoped appropriately and consider working with an experienced, knowledgeable ERP expert.
Focus on Staff Resources and Strong Project Management
Before starting any ERP implementation, make sure that your company has the staff resources in place to see the project through to completion. Identifying a dedicated project leader and a team for your ERP implementation will help ensure that the project goes smoothly.
Keeping these best practices in mind will help you launch your deployment on the right track and keep it there throughout the entire process. Researching the best ERP implementation option for your business, building consensus around the effort, setting realistic expectations, and giving your staff the support they need—these steps take more time, but they result in a more effective ERP experience and a better-run business in the long term.