When your company's basic finances and operations are no longer adequate, it may be time to implement a modern enterprise resource planning (ERP) system.
As new ERP features and applications are continuously developed, it is important to evaluate your options. Plus, in this competitive environment, chances are your peers are already updating their ERP systems, and you want to stay relevant.
What is an ERP system?
ERP is enterprise management software that enables organizations to use integrated application systems to manage and integrate a company's financial, supply chain, operations, reporting, manufacturing, and human resource activities.
Now that you understand what an ERP system is, learn five steps you can take to implement a better solution for your business.
Determine the limitations of the current system
Here are three signs that it may be time to replace legacy systems and implement new software:
As you grow, add more people, customers, and business processes, or enter new lines of business or markets, are your current systems keeping up with you? An ERP solution should enable your business to scale while operating and maintaining day-to-day business processes.
Lack of Insight
While ERP software provides real-time visibility across the organization and insight into the industry landscape, many companies still opt for legacy software that operates independently of other systems. This may lead to different departments fighting in isolation. Software that connects all disparate systems while providing data analytics and business insights is a win-win that delivers productivity, growth and competitive advantage.
Expensive Legacy Systems
Most companies take a hard look at what they are paying for their current ERP deployment fees and maintenance.
While aware of the hard costs, most don't understand the pros and cons of each deployment option, whether it's an on-premises, cloud or hosted ERP solution. It may be time to think carefully about whether to move to the cloud, keep things on-premises, or invest in a combination of the two.
Many companies think they need to do a complete ERP overhaul and get rid of the systems they currently use, but that's not the case. An ERP system can be the sum of many applications and extensions. So if you don't currently have a system that allows you to maintain your workflow and add new ones, look for software that does.
Remember what an ERP system should provide
Let's start with the specifics of ERP. Here are some basic components that any legacy ERP system should have:
In addition to helping you comply with government regulations, your system should provide accurate data and analytics to keep you on top of your budget, including multi-currency management, cash flow management, and banking transactions.
This capability is designed to give manufacturers access to real-time data to optimize production planning, project and cost management. ERP manufacturing should also provide the ability to manage resources and meet customer needs.
As the days of manually entering information and conducting physical counts are a thing of the past, this capability should improve warehouse and inventory management and give companies better visibility into their products and integrated logistics.
Discover what a modern ERP system can offer
Modern ERP systems offer built-in intelligence to guide users to the best possible outcome. They also scale with your business as you expand into other markets and help keep customer and company data safe. Additionally, modern ERP platforms better meet your business needs by offering more cost-effective customization options. This means it can work with your legacy systems, but also scale your day-to-day processes as you grow. Some other resource scheduling tools it offers may help you:
♦ Improve productivity.
♦ Take control of financial management.
♦ Provide better customer service.
♦ Help with human resource management.
♦ Simplify project management requirements.
♦ Improve supply chain and operations management.
♦ Make better decisions with business intelligence and AI.
Global ERP also has its advantages. It simplifies all these essential financial and operational functions and helps you maintain standard business processes that help you reach new markets and do business globally. Globally, ERP systems provide the following tools:
* Helps collaborate in your virtual organization.
* Support for new locations allows you to easily expand into new markets.
* Standardize on a single ERP solution and help simplify your IT environment.
Create a game plan
It can be overwhelming when you're considering implementing a brand-new system or knowing what to add or remove from a system you already have. The better your plan, the smoother your upgrade or replacement of your legacy system will go. Start with these three steps:
To create a wish list:
Take note of the ERP features you already use. Even if it's just a simple financial and inventory tracking system. Now list the features you want or need. Now that you have some options and ideas, you can also investigate more specialized features, such as adding pre-built apps or creating custom apps.
Set a budget:
Now that you have created your wish list, the next step is to set a budget. As with buying a new car, you should know whether your budget allows for a used or new car. Knowing this can help you focus on the systems and features you should be looking for. Start with the cost of supporting and maintaining your system, then look for hidden fees.
Don't be afraid to ask questions:
Don't settle for a one-size-fits-all solution. Make sure the solution you're looking for matches your unique business needs. If you're looking to move from on-premises to the cloud but have security concerns, find a technology partner to help you address them.
Choose your technology partner
The most important part of implementing a new system is the technology partner you choose. If you get it right, it could be heaven for an ERP race, and hopefully, they'll be your partner until the system cuts you apart.
Support is key to success when implementing an ERP system, so you need to choose the right partner and have the support of a knowledgeable and responsive team of experts right from the start – for as long as you need it.
Greatinnovus is one of the most knowledgeable Microsoft ERP platform partners in the US and India when it comes to the Dynamics 365 Business Central experience.
If you are considering implementing an ERP system and would like to speak with a trusted partner, please contact the Great Innovus team.