Right time to implement ERP software

ERP Software Implementation

Recently, due to the economic slowdown, there was little concern whether investment in the ERP by companies may decrease and the number of implementation will drastically come down. But it has been proved that these are speculations without any ground and during the last year growth of ERP software implementation have gone up tremendously and companies have realized that their decision to go with ERP has brought them a good return on investment (ROI).

Though reasons to implement ERP system might vary depend on companies, there are some common reasons for many companies to implement an ERP system at this time.

The primary reason is a slower economy that affords companies the opportunity to use their resources and implement the ERP system software successfully.

The second reason is that many ERP software vendors are aggressively pricing their solutions in response to a slowing economy situation; clients are now able to procure an ERP solution at a lower cost than in years past.

And the third reason is that some clients are continuing to grow despite, or as a result of, the current economy, and these companies are investing in enterprise software that can help them scale for growth.

Also Read – Streamlining manufacturing operations with ERP software

Whatever the reason may be, what we would like to emphasis is that implementation of an ERP system will definitely will improve business performance. Companies also must take initiative to replace an old ERP or legacy system to increase efficiency and to standardize global business operations.

Choosing the right software is not the only criteria while implementing an ERP solution. You also must make it sure that ERP enables measurable improvements to your business. In choosing an ERP software package and planning for the overall project, executives need to make decisions based on objective, unbiased information rather than gut feel.

Companies must be well prepared before going for an ERP software implementation and must embark on a thorough ERP vendor assessment and selection process.

Companies must also know before making a decision to implement an ERP system that what the company want to accomplish by taking on this challenge. ERP implementation should be carried out only after a study of impact of pros and cons that could bring to the company in its business process and return on investment.

Success of an ERP modules will also depend on how it has been used. Proper training to the staff is very important when it comes success of an ERP system. In addition to training to employees to use the ERP system efficiently, executives should use the process of defining ERP business requirements as an opportunity to improve current operations, efficiency and effectiveness. The last thing a company should do is implement software to automate the same flawed business processes.

Many companies implement ERP to automate their business process and this is where they fall flat. As mentioned above companies must study the scope of the ERP system they implement well before implementation and must make use of all its operational methods and utilization properly to achieve a positive result along with automated operational methods.

Also Read – An ultimate guide to implement ERP software in Construction company

Keep your ERP database fully protected

ERP Database Protection

Every company has confidential information about its business strategies and other details which are considered be very highly important data. Therefore, it is important to see that this database does not fall into the wrong hands which could pose severe consequences for the company.

Many steps can be taken to enhance the company’s ERP database security. Role-based IDs and passwords will ensure that users can access only the data they are authorized to view, based on their job function or position within the company. A practice of changing the password on regular basis by the users will be a good habit that could act as a ideal ERP data protection. And, data encryption, firewalls, and other measures can help you keep hackers, cyber-criminals, and other outsiders far away from your ERP software database.

As you know an ERP database is perhaps one of the most vital assets the company owns. Keeping that ERP database protection from threats such as security breaches, performance issues, and technical breakdowns is crucial to ensuring continuity and consistency in your most important business activities.

When there is a threat to your ERP software database all the major operations of your company such as human resources, production planning, procurement, accounting and finance and other critical back-office function could become standstill.

But this kind of a security threat could be eliminated with advanced administration techniques. A good security backup could ensure that your ERP database is available and readily accessible at all times. By monitoring performance around-the-clock, system administrators can immediately identify and troubleshoot problems, to prevent productivity slowdowns caused by down time. Additionally, mirroring your ERP database using redundant servers can provide a much-needed backup that can be utilized in the event of a major system failure.

Also Read – ERP web advanced features

Companies must also be prepared with other disaster recovery management. Today there are few companies that are prepared in the event of a major fire break out or a flooding situation. To face this kind of natural disaster the companies must be occupied with well-designed back-up plan in place. Loss of critical information and database could cost your company millions of rupees and will take your company back to years in terms of business growth.

Today most of the companies see the opportunity to implement ERP system as to replace all of their old legacy business applications which can make their business operations more efficient with right security support. It is also to be remembered that when putting measures in place to protect your ERP environment is to not only safeguard the ERP database and related systems, but to secure all other systems that share information with it.

Also Read – Features and Benefits of ERP systems in the food industry

Enterprise Resource Planning and Return on Investment

ERP and ROI

Though many organizations spend lot of time and money researching, analyzing and justifying an enterprise resource planning (ERP) purchase, they hardly spend any time to scrutinize whether the application performs satisfactorily and gives the required output.

If organizations don’t establish specific performance metrics, it will be very hard to gauge how well that product is working to meet their objectives, let alone correct any performance gaps.

Given that ERP system is somewhat expensive, some might wonder why more organizations don’t engage in a thorough, after-the-fact audit. Reasons range from a lack of involvement by senior management to anxieties about whether the project will live up to its promise-and whose feet will be held to the fire if it doesn’t. And somewhat surprisingly, after-the-fact audits are often skipped because no one agrees on what precisely constitutes a successful ERP program.

When the majority of the people you ask not may not sure about what an ERP is, it makes little difficult for your to search for the people who may know it thoroughly. On a technology level, ERP software integrates a company’s departments and functions into a single program running on one database, a valuable step forward for improving efficiencies, because integration speeds up business processes.

For a HR manager, ERP system is something different application from a production manager. For him/her it is a system for the employees to interact with each other. But getting bogged down in definitions is beside the point. The point is whatever methodology you use to measure your ERP, it should be applied consistently across the organization at specific points following the implementation.

How often you measure your ERP system will depend on the size of your organization and the depth of your software change. Typically, an audit should occur halfway through the implementation, again at three-quarters of the way through the implementation, and when it’s complete. Then, you should follow up every quarterly.

There may be some further questions that how can the ERP applications be measured up? Only a systematic, disciplined approach to measuring ROI can provide the answer. However, if the ERP audit focuses only on productivity gains, such as how many steps it takes to complete a shipping label, you won’t get the clear of ROI. To get a clear picture the audit must take into account how well employees interact with the ERP software. Whether the system empowers them to accomplish key tasks? How quickly do they adjust with its functioning methods? To get the actual result, user surveys should be conducted immediately after the training period and again six months later.

A polite approach to the employees to enquire about the functioning of your ERP system could get you closer to the software and its functioning. It will help you understand any shortcomings in the system as well as the need of further training to the employees which could make them more comfortable with the system. A logical and systematic approach to the ERP system by the employees is a must for a good result that ultimately reflected in the organization’s return on investment (ROI).

Also Read – ERP Software for Manufacturing

Web-based ERP can boost your business

Web-based ERP Software

Successful organizations are continuously modifying their methods in serving their clients which also increases their profit margin. To achieve this positive result, organizations have to intelligently integrate ERP system in their business management process. An effective ERP system gives the solid foundation to the supply chain which enables information; material and money automatically flow up and down the supply chain at high-speeds without any glitches.

Of late many of the organization consider Web-enabled ERP as their most important and strategic platform because it provides a solid foundation and information backbone for e-business. When a business application like an ERP system is enhanced with the e-business capability, i.e. making it a web-based e-business enabled ERP, they supercharge each other. e-business is the best vehicle to share business information with partners for creating major B2B synergies.

A fully integrated web-based ERP software will capture and create accurate, consistent and timely relevant data, and assist in intelligent business decision-making. The impact of ERP/e-Business integration is substantial, ranging from reduced inventory and personnel level to improved order and cash management. It also results in improved customer responsiveness, reduced IT costs and the availability for value-added activities.

A clear advantage of the web-based ERP software is that remote users like executives and sales representatives can access the company system with any browser, which is much more convenient than going through a laptop configured for Terminal Services. A quick and on-time implementation of the solution can be done on your existing configuration set up. That means you do not need to upgrade your network for Windows/Exchange Server and SQL Server database.

As you would have come across more suggestions on ERP, selecting the right one is crucial. The term “Hosted Solution” is rapidly catching up, on account of its own benefits. A web-hosted solution ensures a lower outlay and predictive spread of cost over time. You have a substantial saving in cost (on both the software and hardware, licensing) that can be better invested in your business process.

Web-based ERP removes your headache from the Investment made towards time and cost in the maintenance of the server & other hardware. When you go in for a web-based ERP, you can start using it from day one and can eliminate all trouble shooting and other related technical snags. Most of the hosted applications are like off-the-shelf software. The web-based ERP applications are available to you anywhere and at anytime from a simple browser.

Also Read – How construction ERP software is useful for civil work?

Is your ERP system ripe for replacement?

What is the need of ERP software? Some may ask. The answer is not simple. Though we must understand that today there are lots of midsize companies face challenges specific to their industries. Businesses that make consumer product goods are concerned about regulations and reporting requirements, while public-sector organizations are worried about maintaining customer loyalty. Also, manufacturers are concerned about the commoditization of their products. A robust ERP package can help address these issues, as well.

Though some companies have already implemented an ERP there are still many who don’t have any of these systems. At the same time, it is also to be noted that many ERP implementations in the midmarket are quite mature and ripe for replacement.

Many midmarket companies must now also choose an ERP system on which to standardize after multiple systems were installed, perhaps through mergers, across the enterprise. Although it’s not necessary, midsize companies seem to prefer consolidating their business-management applications in one ERP package, at least in part to cut down on integration headaches.

Vendors are aggressively vying for customers, launching new ERP solutions designed to meet needs particular to the midmarket and pricing them to meet a midmarket company’s budget. To further entice midmarket customers, vendors are also developing vertical solutions that target certain industries, such as manufacturing, pharmaceuticals, fleet management and construction, with built-in functionality that cuts down on customization.

In an effort to simplify the notoriously difficult implementation process, vendors are also developing ERP systems that can be delivered in ways friendly to organizations with limited IT resources. Web-based ERP solution has become an ideal system for many of these mid-sized organizations as it is very cost-effective with easy implementation process.

There are some companies that may try to develop its own ERP system in-house. Since designing and implementing ERP systems is not the business of most companies, the systems developed by the team will never equal in quality, scope, functionality, or technology with those created by software firms. These software firms or ERP package vendors can produce sophisticated packages and provide their clients with products that allow them to maintain a focus on their own chief activities, thus improving revenues, profits and shareholder returns.

Thus, it always better to buy ERP packages ERP systems are getting better, bigger and have more features. Also, people who are specialized in developing such types of tools have developed them. Most of the tools would be customized to suit your needs. So unless and until your project or organization has a need that cannot be fulfilled by the available tools, it is better to buy the tools rather than make them.

Also Read – Live ERP Software Demo

Benefits of ERP for Manufacturing industry

Benefits of ERP for Manufacturing industry

Initially, Enterprise Resource Planning (ERP) solution was developed for the big organizations. It has also involved huge investment which was out of reach of small and medium sized industries (SMEs). However considering the benefits the ERP solutions have, the smaller organizations also explored the way to implemented it.

This attitude has paved the way for many locally made ERP solution providers entering the market with very effective applications which have turned to be ideal for small and medium sized companies. As the local ERP vendors were targeting the SMEs, they also kept the price tag in mind, which ultimately resulted in existence of some effective and affordable ERP products in the market.

Manufacturing was one of the sectors that have benefited most from ERP solution. It was due to timely ERP implementation. Other sectors also followed suit. Today, all industry segments are taking advantage of ERP solution and it is becoming a necessity rather than a luxury to have ERP implemented in an organization for its successful business operation.

Also readeresource xcel helps manufacturing industry on increased productivity

Before the evolution of ERP, manufacturing sector were running on manufacturing resource planning system. The manufacturing resource planning included all the sources in relation to the manufacturing such as material, human resource, equipment and finances. When the competitive strategy changed from low price and great variety to speed, ERP found the right place to give profit to this new strategy.

Contrary to the other applications, the ERP system connects to all the offices of a group of business throughout the entire world. ERP system allows the organizations to design products with the entrance of engineers all over the globe, installing factories in various areas to produce pieces and components for many countries, and the information of all the parties involved.

ERP offers solution that enables manufacturers to compete in the prevailing market atmosphere. It has the capacity of both finite and infinite planning capabilities which assist manufacturers to develop original schedule. ERP solution can also transform the supply chain to achieve production plan with sales plan, manufacturing, finance and customers.

ERP is changing the competitive landscape for SMB manufacturers. Small to midsize manufacturing companies can benefit from a fully integrated solution designed to reduce costs, improve customer service, increase margins and generate new revenue streams. Further, SMB manufacturers can improve business performance with a deeply functional, yet easily affordable, ERP solution. As the technology changed ERP solution also found its way to the web. Today web-enabled ERP solutions are the most effective solution available in the market.

What is to be cautious about the selection of an ERP system is, before you commit to any ERP system, you should first evaluate the system such as what your organization needs and wants to accomplish with its ERP strategy. The outcome of this evaluation will help you determine which applications and what kind of functionality your organization requires as well as go a long way toward easing the implementation.

Also ReadEssential manufacturing ERP modules to look for in the ERP system

Live demo of ERP gives you a real picture

Benefits of Live demo of ERP Software Solution

The real picture of a proposed ERP product can become clear when the live demonstration of the product is given. The sincerity of the solution providers and efficiency of the product becomes evident in the live demonstration. The demo also makes it possible for both the parties to propose feasible modifications in the package. The credibility of the system can also be scrutinized here. Moreover, it acts as a cross check for the functionalities offered by the developers in the compliance of the product.

The top management and all the other people connected to an organization must realize that whatever be the reason for the changeover to an ERP system, i.e. technical or strategic, it is impossible to separate them, since they affect each other.

Also Read – Live ERP Software demo

Live demo of ERP is a better tool to understand the various integration/touch points and the participants could experience the different functionalities as well as they can also check for any shortcomings in the system which can be rectified as per their requirement.

It is usually better to get a brief about the product before seeing the demo, which can be obtained through the website of its developers. The time and method of the demo could be finalized by the demonstrator and let set their own sequence. Any doubts about the product can also be cleared in the demo stage. Demo scripts in the form of brochure or function details through the website are a better tool to present the demo as there is uniformity in the flow of the demo and the various integration/touch points among the different functionalities can be checked.

The workflow becomes clear during the demo, and users can have a feel of the proposed product at the demo itself. This will determine the acceptability of the product in the minds of the customer. The quality of the product also becomes clear at this stage.

Based upon the markings obtained in all the above-mentioned points, those products that cross the threshold mark get qualified to be evaluated. Before finalizing one more important point to be considered is the cost factor. Though all the products have its own price line, all developers may be willing to for a negotiation considering the competitive mindset existing in the market today. However, some developers of the product won’t alter the price tag, majority of them will agree to some climb down.

Once it has been agreed on technical and the terms and conditions in the financial front, a suitable product can be finally selected for the ERP implementation.

Also Read – What is the best ERP for the electronic manufacturing industry?

Retaining customers makes perfect business sense

Customer loyalty has a powerful effect on the business bottom line. The dramatic economic power of customer retention is revealed when customers are viewed in terms of lifetime value. The value of retaining customers makes perfect business sense when one considers that a consumer retained for life is more cost-effective, requires less service, provides more business and contributes to new customer acquisition by offering positive referrals.

For the average business, studies indicate that repeat customers account for 70 per cent of total revenues. Thus, customer retention, creating longitudinal investment in customers, guarantees significant current and future economic benefit.

ERP integration enables businesses to better comprehend and thereby, better serve customers with each and every interaction. The ERP integration is not an easy task. The good news is that there are a growing number of solutions available. Before adopting a course of action there are a few common rules to follow. Firstly, make sure you understand the problem before you undertake the solution. ERP integration is a corporate-level problem requiring a corporate level strategy.

Also Read – ERP for civil engineering its role and benefits

Enterprises must consider the use of an ERP as an obligation instead of an option in order to be competitive. With old systems the information that comes from daily activities are difficult to handle. This will ultimately affect the relation the company has with its customers. Customer satisfaction is the most important element of a successful business and ERP plays an important role in fulfilling this commitment.

Everybody knows that communication improves relationship. Therefore it is important to understand that ERP can bring data from one area to another without any extra effort, and with almost no chance of mistakes. In addition to this, the information becomes available in real time. Therefore, by the time an order is entered, it can be prepared and invoiced at the same time. This helps a lot with customers as they always expect a quick response.

Organizations implementing ERP applications have to explore the areas of integrating these applications to the other enterprise applications. What approach to take will depend on the need for integration. Diverse tools and methods available in the market are evaluated and tested professionally before implementation. Organizations have to adopt very cautious approach while selecting these tools and methods to keep their leadership in the market.

In small organizations every department has its own needs, and they ask technical department to provide software capable of matching them. Sometimes this is provided from the outside through vendors, and it might not even exist. This is a common mistake happening with many small and mid-sized organizations. For an effective business process and customer relation management, it is necessary to have an efficient ERP system deployed in the organization and it must be done professionally to achieve the expected result in the terms of functional, technical and economical.

Also Read – How ERP system useful in pharmaceutical manufacturing industry?

Adopt global best business practices

Adopt global best business practices

Best practice is the process of finding and using ideas and strategies from other companies and industries to improve performance in any given area. Business has used best practice bench marking over the decades and realized billions in savings and revenues in all areas of business operations and sales.

‘As-Is’ best practice addresses or includes the present practice followed by the specific company which is planning to implement the changes required to keep itself in the league of other top companies in the industry. This is done in all functional areas like HR, Operations, Finance, and Maintenance. etc.

‘To be’ best business practices are generally the best practices which exist in the industry and have been refined over a period of time. Companies should aim at adopting their industry specific best practices for their future benefit. Preventive maintenance, activity-based costing etc. are considered as best practices.

‘To be’ best practice includes some of the practices which are already adopted globally and are taken as industry standards for swiftly operating businesses in a competitive global scenario.

Also Read – Significant changes in business after using cloud ERP software

Some of the best practices that can be adopted are as follows:

Information Liquidity

Much like cash liquidity, the liquidity of information is a measure of business success. In a successful company, data flows smoothly and information is transformed into economic value. Information liquidity is obtained by integration of processes and systems at all levels. Integration should be the driving force behind design, methodology, development and deployment of all IT systems.

Availability

As most companies become more and more dependent on IT, it is very important to ensure the maximum availability of the eservices. This does not mean that all IT systems have to be absolutely flawless and foolproof, but good through has to be given to what could be the consequences for the company if all or part of the IT services are temporarily unavailable, and what can be done to minimize these consequences.

Agility

Market changes constantly and so does legislation and technology. It is said that the product life cycles and their time to reach the market are getting shorter and shorter. As a consequence, IT systems have to be built for maximum agility. Cross-compatibility, reuse and lightweight functionality are the ideas to be considered.

Costs

Especially in times of economic slowdown, the costs of IT are under constant scrutiny. Unfortunately, it is very difficult to quantify the benefits of IT in terms of money and it is relatively meaningless to approach IT investments singularly from an accountant’s point of view. These costs also have to be related to non-quantifiable benefits for the company.

Also Read – How ERP software is beneficial for pipe manufacturing industry

ERP growth is skyrocketing

ERP growth is skyrocketing

Demand for Enterprise Resource Planning (ERP) solution growing day by day. Experts are forecasting a huge growth of demand for ERP mostly in mid-sized organizations. The demand is due to the specialty of an ERP system to manage the increased customer service, efficient distribution system and reduced operational costs. Majority of CEOs/Senior managers share the same view that ERP is an important tool to achieve competitive advantage.

The number of employees in an organization using the ERP system is increasing and organizations that have started with the basic modules are now expanding their system with subsequent applications. This is also another reason for the ERP growth. Another factor for the growth is many organizations replace customized system with standard application packages.

Most of the medium ERP vendors are targeting the mid-sized organizations. This is because many of the mid sized organizations are working with applications which are non-integrated and on disparate technology architectures, built in-house. This has resulted redundant technology, loss of support, non availability of critical information at the right time resulting in overall business loss. ERP vendors in India have found it an ideal market by exploring the SME segment. There are lot of demand persisted in this market, which on the other hand helped to growth the ERP market in substantially.

Also Read – How web based ERP software helps remote workers

Knowing that majority of Indian manufacturers are small by global standards and requiring easy-to-use ERP solutions to meet their specific process requirements, ERP vendors in India have come out with ideal solutions which can not only match their needs but also their budget. Now almost all small and medium enterprises across industry verticals and micro verticals, such as pharmaceuticals, chemicals, fleet management, automotive, modular kitchen, construction, infrastructure, and textiles, are leveraging ERP solutions to gain sustainable competitive advantages.

With the advent of on-demand deployment of ERP software and also web-enabled ERP solution, the user can access the software through license as a Web-based service. The increasing popularity of the web-based applications account for the ERP growth, as the enterprise resources are maintained by a service provider.

Growth factor also includes the competition prevailing in Indian ERP market. With the entry of international companies in the local market, the local vendors also steadied their products which are going to be a good sign as far as mid-sized organizations are concerned. Now they can find a wider market with ERP product suitable to their needs also in their limited budget. As the market is getting more competitive reliability and compatibility about the smaller players are unwanted. Today SMEs can choose the right ERP at their will with confidence which is, indeed a good sign.

Also Read – What are the future trends for a construction ERP software?