Implement an ERP And What Are the Keys To Choose The Right ERP for A Company?

Post

Is it time to implement an ERP in my company?  Today we dedicate the blog post to share some of the circumstances that are given as a warning at the time when an enterprise must bet on evolution and implement an ERP solution.

What Is an ERP?

An ERP (Enterprise Resource Planning) is an intelligent business solution, an information system, which aims to unify and encompass the various processes of the company, such as financial management, human resources, operations, and others. in one place, to optimize them and seek an increase in efficiency and profitability.

Traditionally, these solutions have been expensive and have required long implementation projects, making them accessible only to large corporations, but technological developments and the possibility of implementing an ERP in the cloud, have helped to make these solutions are now also an option for small and medium businesses.

Below I share some common scenarios that indicate the need to bet on the implementation of an ERP solution in your company.

Scenarios Requiring an ERP for an Enterprise

1.  Manual Processes & Organizational Chaos

When we start a business, we try to start with the least possible investment and with simple and economical solutions for process management, such as the use of Microsoft Excel for invoice and customer management. It is a very valid option but most likely over time and with the increase in business activity, invoices, and the customer portfolio, we begin to perform many processes manually and inefficiently, wasting a lot of time and valuable information. These barriers to scalable growth lead to an unproductive scenario in which neither time nor resources are used correctly.

2.  Inability to Know Exact Data

Another relevant indicator is the loss and non-exploitation of valuable information. If we are not able to know the state of our company, in an agile way and with accurate, concise, and clear data, it is very difficult for us to direct our strategy to improve.

Without data or analysis, there are no improvements. Most likely we rely on intuitions and experience, but without being able to know the most relevant details and data of our business it will be more difficult to make improvements. The correct implementation of an ERP solution in a company in conjunction with Business Intelligence tools make it possible to convert the data generated in the company into useful information for making intelligent decisions more effectively and quickly.

If the current process of extracting information from your business is very complex and not entirely reliable, it is very likely that you will need a new management solution.

3.  Chance & Lack of Control

Another indicator that is informing us of the need to implement an ERP in my company is the lack of process control. It is normal that as you grow, manual management misses many important processes and details, so it is important to opt for smart business solutions that perform automated processes. If we are able to automate repetitive and low-value tasks, we will ensure that valuable resources can devote their time and effort to more valuable proposals and tasks.

4.  Decrease or Loss of Sales

One of the most alarming indicators is the loss of sales. If these losses are caused by a lack of stocks or delays in production, it is very likely that technological and/or human resources will be saturated. If the set goals are not reached, it is very likely that the time has come to opt for process automation with the application of a new ERP business management system, which optimizes the use of time and resources.

What Are the Keys to Choose the Right ERP?

An ERP allows to comprehensively solve all the management of the company, that is why it is necessary to be clear which are the keys to choose the most suitable management tool for our needs.

The keys to the needs of the company;

  1. Business Strategy: the company’s management team must be the first to commit to the implementation of the new system. He will be in charge of having an overview of the implementation of the new software and will be the first beneficiary in terms of obtaining data.
    The use of an ERP system integrates all the departments of the company by consolidating all the data obtained in a single place from which data can be extracted that have all the variables used in the company.
    This will help us to be able to improve our business strategy, by making decisions and setting future goals based on data, not just assumptions.
  2. Implementation Strategy: we must have a team that is in charge of the implementation, that understands the project and its scope and that is committed to it.
    If we get this team to stay motivated with the change and help us convey the new work philosophy, the implementation will be a success.
  3. Change Management: Getting out of the comfort zone, from this already known field of work, will be the most important challenge when implementing ERP. As such, we are more comfortable with what we already know and often resist accepting new tools or ways of working even though we are aware that, objectively, they can be a positive change.
    The person in charge of this task will be the Human Resources team, which will have to align with those in charge of directing the implementation of the new software, always with the aim that all teams seek to reach the same place.

The keys from ERP functionality

  1. Functionalities: We must assess all the management needs of our company and make sure that the ERP can meet them all, reaching all departments of our company. From our ERP we will have to unify invoicing, customer management, production, payroll management …
    In addition, it will have to guarantee that this software will be multi-device and that it will assure us the mobility and the possibility of consultation of data in real-time from any place and device.
  2. Ease of Use: The user experience is key to the successful implementation of new management software. It will be a vital element in facilitating change management.
    If it is easy to use and does not require great technical knowledge, implementation will be faster and changes in productivity and effectiveness will motivate the team in the process of change.
  3. Scalability: The solution we implement must not only adjust to our present needs, but also to future ones.
    Technological changes are rapid and we need a tool that is ready to adapt to the needs of the market and customers, without having to worry about having to replace it again in the short term.
  4. Guaranteed: We need to choose management software that has consolidated support, success stories, and implementation guarantees. You must also provide us with after-sales support and the corresponding updates and always provide us with the changes.
  5. Secure: All companies, in one way or another, work with sensitive data that contains business information. Managing all this documentation properly will not only allow us to comply with regulations but will ensure better management of our data and better knowledge of our customers.

To Sum Up:

We need to value all the options based on our specific needs, but without losing sight of any of the keys we have raised. The choice of an ERP must be adapted to our business model so that it helps us to make strategic decisions and improve our competitiveness in the market.

ERP Microsoft Dynamics 365 Business Central

At Code Creators, we are committed to the intelligent business solutions of Microsoft Dynamics 365 and its new ERP management system Microsoft Dynamics 365 Business Central, for its continuous commitment to improvement and its great ability to adapt to all kinds of businesses and sectors, with a strong standard system in which thousands of companies around the world already rely upon.

If you want to know how to carry out a project to implement an ERP solution for your company, contact us and we will advise you without any commitment.