How ERP Software can transform Businesses

Enterprise Resource Planning (ERP) is a software package through which an organization achieves an integrated system of data and processes in a single window of the solution. An ERP system combines all the elementary functions of an organization irrespective of its business or authority. ERP software undertakes to merge all departments and functions in a company onto a single computer system that serves the specific requirements of all those departments.

The entire functionality of an organization is enclosed in a single package that would be covered by two or more systems. An example of such software could be accounting software that offers both Payroll and Accounting functions. The entire business runs more effectively & efficiently with a single software program performing for the requirements of those in human resources as well as in the finance department.

Most Valuable Features of ERP Systems to Transform Businesses

Normally, each department in a company is embellished with computer systems, which are optimized in such a way, to carry out specific functions of a department. However, with ERP, all are threaded together into a single software program that runs a single database. This enables all the departments to share the information and communicate with each other without any hassles. A typical system design is modular, allowing companies to select the pieces. Each module covers a major business process. ERP applications normally should be able to stand alone, be implemented together, or integrate with the larger suite.

Human Resources (HR)

The HR component of an ERP system handles the full scope of employee management. It may feature:

1. Database for employee Records, Job profiles with Skills
2. Time tracker with Performance reviews and Timesheet
3. payroll management
4. Learning management system
5. Employee surveys and news
6. online community for employee collaboration
7. Policies and procedures for a company, etc.

Payroll software is the greatest asset. It is tightly integrated with the financial management module to handle wages, travel expenses, reimbursements, and tax and benefits deductions. The functionality helps automate the payments and removes the need for a payroll department or at least saves their time.

Financial Management

The module stores, monitors, and analyzes the company’s capital inflow and outflow and facilitates payroll, budgeting, billing, and banking operations. The tools may include:

1. standard accounting and finance transactions like expenditures, general ledger, balance sheet, bank reconciliation, tax management, and payments;
2. cost analyses, budgets, and forecasts;
3. financial reports for the departments and business units, etc.

A robust financial feature in ERP software enables companies to automate and simplify most accounting processes. They can meet financial reporting and tax requirements with a single accounting, banking, and payment system.

Customer Relationship Management (CRM)

To manages leads, opportunities, and issues and consolidate data on the customers’ purchase history, interactions with customer support, and social media activities. It helps salespeople and marketing planners address customer needs, preferences, and buying patterns more efficiently and suggest additional purchases.

Businesses can provide relevant and real-time information for the best-prepared proposals, monitor the status of contracts and manage invoicing activities better. That boosts customer service and eventually profit per capita.

Sales and Marketing

This component handles sales inquiries, quotations, sales orders, and sales invoices. More advanced ERP applications include taxation rules and a shipping tracker. They enable businesses to automate the tracking of sales margins and to access synchronized reports of key businesses.

Normally, each department in a company is embellished with computer systems, which are optimized in such a way, to carry out specific functions of a department. However, with ERP, all are threaded together into a single software program that runs a single database. This enables all the departments to share the information and communicate with each other.

Steps for Implementation of an ERP Software

The implementation of ERP software does not involve any “in-house” skills. This is why the cost of smaller projects can be reduced if specialist ERP implementation consultants are hired. The time required for an ERP implementation essentially depends on the size of the business, and other factors such as business processes, workflows, etc. While a small project (like less staff) may just take two to three months to plan and deliver, a multi-site or multi-country implementation may take more than 6 months to complete.

One of the best features of an Enterprise resource planning solution is that there are various phases of development customization training and implementation which can be taken care off by the ERP vendor you select for the implementation. There are various apps available within the ERP tool that helps you to manage your workflows and processes.

Implementation of ERP software requires a proper methodology in order to ensure that the development and customizations are proper in place with the timelines of the project. There are various ERP implementation methodologies that can be applied such as Waterfall ERP implementation and the Agile method.

 

Consulting Services

The consulting team handles the responsibility for initial ERP implementation. It also conducts the delivery of work until the ERP goes live. Normally their work includes product training; creation of process triggers and workflow; optimization of the system; enhancement of reports, complex data extracts, or implementation of Business Intelligence; and specialist advice to improve the way ERP can boost the business processes.

The team also undertakes the most critical part of the project – planning and jointly testing the implementation. In the larger ERP projects, consulting is done on three levels:

1. Systems architecture (the overall dataflow),
2. Business process consulting (mainly re-engineering), and
3. Technical consulting (basically programming and tool configuration).

Generally, the consultation can be hired by an ERP functional specialist who can understand and record all the details of your business processes and workflows. The cost of a consultation can be separated in order to ensure proper processes are crafted during the Business Requirement Analysis. This further helps you to ensure a lower risk of failure with ERP development.

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Customization Services

The process of customization involves extending or changing the way system works using new user interfaces and application code. Customization normally reflects the work practices, which are not present in the core routines of the ERP system software.

For instance, the code may include an early adopter feature like the mobility interfaces, which were rarely used earlier. There are other examples such as interfacing to third-party applications (it is easy customization for larger implementations as there are typically dozens of ancillary systems with which core ERP software interacts). During the ERP up-gradation, a professional service team is also involved to determine whether customizations are compatible with the new release.

One of the major considerations in the ERP package is that it can be very expensive and complicated. So most businesses use the top practices embedded in the acquired ERP system.

The customization work is usually undertaken as tailored software development on a time and materials basis. There are many cases where the work delivered as customization does not include the ERP vendor’s Maintenance Agreement. Therefore, there is no obligation on the ERP vendor to warrant that the code works with the next upgrade of the core product. However, if there were no description on how to use the customization, the effort would be a sheer waste as it is quite difficult to train new staff in the work practice that the customization delivers.

 

Support Services

After installation of the system, the ERP consulting company enters into a Support Agreement, which ensures that the staff could run ERP software in an optimal way. This is conducted by a committee headed by the consultant through a participative management approach, already decided during the design stage with the client’s heads of departments.

 

Primary Benefits to Transform Business after Implementing ERP System

1. The total access to every process for every department help to track inter-departmental processes handling and control step level.
2. Companies collect data more efficiently. ERP systems eliminate data duplication and ensure data integrity with a single source of accurate real-time information.
3. Because many data tracking processes are automated, friction, errors, and costs can be reduced significantly.
4. A complete picture of the organization’s processes at any moment empowers managers to make crucial decisions quickly and more confidently. A clutter-free and easily understandable interface of ERP software with spreadsheets, charts, and graphs further facilitates decision-making.
5. Managers can make more realistic estimates and useful forecasts.
6. Some ERP systems permit the integration of third-party services into a unified whole. SaaS helps businesses integrate existing apps or export their ERP data to other business apps for a more streamlined workflow with API.
7. ERP software can unify a company’s IT costs and improve efficiency. Instead of several systems that need dedicated staff, infrastructure, etc.,
8. Companies can focus all these costs on one system. Thanks to ERP vendors providing regular updates, patches, and troubleshooting, their clients can save on maintenance.
9. Using a single system reduces training requirements for end-users and related costs.
10. Deeper insights into a firm’s spending enable the discovery of profit trends and times of unusually high spending, improve cash flow, reduce costs, and increase profitability.

Implementing an ERP system is totally based on the functionalities you are looking out but making it successful implementation with a checklist is based on the project plan, A successful Odoo implementation greatly depends on choosing the right implementation company. You create with every step which we have discussed in this blog post

 

At Globalteckz

 

We at Globalteckz offer you one of the leading open source ERP software named Odoo – We are official odoo partners and have successfully completed more than 50+ projects across the globe. We offer end-to-end services including ERP project planning, implementation strategy, training, and support.