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"Every organization that implements an ERP system is, in effect, reengineering."
Marianne Bradford, Modern ERP
On-premise to Cloud, Best of Breed to One Application, to Niche ERP that is Hybrid
ERPEnterprise Resource Planning What is it? Best way to explain this is simply, computer software that is completed integrated. Accounting, HR, inventory, and more. Prior to ERP is what we like to call "departmental buying" where you have each department, say accounting, that is bogged down with manual work. The departement decides to invest in technology and wants to upgrade their accounting software. Sales, has its own contact management software, marketing it's own, HR and so forth. One problem, none of these applications are talking to eachother and each has it's own verison of the corporate data. The CEO conducts her annual meeting and wants reports from each department. You can integrate all of these applications and that would be called "best of breed" and is become very popular again due to the ease of integration.
With ERP solutions like NetSuite, BizAutomation and Sage you can run your entire business on one solution vs. multiple products for each department or purpose. It is better to have an ERP than best of breed? Really depends on the type of business, it's processes and goals. Now there are many ways to purchase an ERP, either cloud solution, on-premise or hybrid. When a company says their "Cloud" it does not nesscarly mean SaaS (Software as a Service), for example, you use LinkedIn and pay for preminum features. Did you need to purchase hardware such as a server, or rent space to upload? No, you just pay, login and use. You really do not care which verison of LinkedIn, you just want it to work. That is SaaS in a nutshell. Most software vendors today offer SaaS and again depending on your company and its processes, it is not always for you. That is what ERP Concierge does, assists with what solution, how it is deployed, and how it should be configured.
ERP Software Selection
I already have accounting and customer relationship management software?
Many businesses that we speak with say this all the time. Of course, we always respond with a question annoyingly, "So, what is wrong then?" A whole slew of answers from all departments come back. Customer calls, I do not know where the product is at, go track down the Jon in the warehouse. This is just the tip of the iceberg of issues that deal with software applications that do not speak to each other. As I mentioned above, best of breed, where you have specific accounting solution like, Intacct, a CRM soltuion like Salesforce, inventory solution like Fishbowl and have them integrated could work. Although, if you are say a wholesale distributor, you would need to integrate all solutions, have system admins for all, separate databases for all, and really would not have a complete 360 degreee view of the business. If you are a financial services company, or marketing company where inventory non-exsistant, then an Intacct/Salesforce solution could be right for you. Again, it is always in the details and that is what ERP Concierge will help you with!
ERP Software Implementation
Expect to learn a whole lot of what you though you knew
Once you have completed the software selection process, and have purchased, it is time for implementation. This is one of the most important parts, as this process could lead your company down a rabit hole. ERP Concierge will provide the outside point of view, and help define what is really needed vs. a want or nice to have. As you go through this process you will in fact be conducting a BPR - Business Process Re-engineering. Not all software vendors are the best in this part of the process, some are rather large vendors and really just want to configured the bare esssentials in order for you do conduct business. Sometimes a vanilla implementation is what is needed, and then customization is needed. ERP Concierge will haelp determine with you, in order to keep costs low as well as find the right implementation partner.
ERP Software Integration & Third Party Add-Ons
I just spend how much for my ERP and now I need what?
As a business owner/executive, you have spent a fairly large amount on a ERP solution and if you have selected the right one with the correct implementation, we can see and do see the frustration when the topic of needing third party add-on and integration. The conusmer today couple with rapid technology advancment placing a burden on businesses. With that said, eventually you will need to acquire additional products to please your customer base. ERP Concierge suggests that this should be done after at least a full year after implementation in order to determine what is needed additionally. Sometimes this process is part of your initial implementation and again, that is where ERP Concierge comes in. Finding these products and implementation partners is very similar to ERP software selection and during that process ERP Concierge will help determine with you when it is right to do so.
ERP Software Customization
Thought this is what I paid for
Oh boy, this is a scary word to many! Customization and configuration are two completely different things! From our experience, customization ONLY should be needed for essential processes needed to conduct business. It is best practice to use the solution as is if possible, this will allow you and your users to understand what the software can do out of the box as well as very clearly understand what you need it to do additionally. This will keep the costs low, and not complicate the already complex process of implementation.
Waiting five to ten years will also hurt you. We have worked with a company that purchased an ERP solution 10 years ago and paying for a solution that did not suit their needs. As a result of not conducting conintualy process improvement the cost to revamp and updated the software to their requirements was hefty, we believe it was around $40K. Irony is that the solution could do what they wanted and only if they have a realiable partner to provide the level of service they needed this would not have been the issue. So, this company opted to implement a new ERP solution. This was a mistake in ours eyes and you cannot change someone's beleif, and they ended up spending $140k to only have a few more functions than their previous solution not customized. ERP Concierge works with you to help you not only understand that maybe a customization isn't the limitation of the software, more so, the lack of service, and drive to improve their current software. After 10 years, your business will change and ERP is not a one and done. It is a constant project, as it is what runs your business.
“Having an ERP system is not a luxury but a necessity. It is a must for survival in this competitive world.”
Alexis Leon, ERP Demystified