What is ERP?
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Enterprise resource planning (ERP) is a business management system that integrates most functions of a business, including quoting, planning, manufacturing, service, sales and marketing. It also covers activities like stock control, order tracking, customer service, finance and staff. A true Enterprise Resource Planning (ERP) system integrates both internal and external information flows used by the organization within a single, comprehensive solution. The objective of the ERP solution is to streamline and improve the efficiency of business operations, which saves time and money.
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Do I need ERP?Prior to proceeding to the selection of an ERP system, it is important for you to realise whether you really need one. 5 Major questions to determine if you need ERP.
Q1: You Have Lots of Different Software for Different Processes Q2: You Don't Have Easy Access to Information about Your Business Q3: Accounting Takes Longer and Is More Difficult Q4: Sales and the Customer Experience Are Suffering Q5: Your IT Is Too Complex and Time-Consuming If your answer is yes, then it is a good time to consider purchasing an ERP system. |
How to choose an ERP? 7 things to keep in mind:
1. Form a Committee, Assess Your Business Needs
Consider the current challenges that your organization faces that would be solved or reduced with the ERP system. Form a committee, there should be representative from each major department.
2. Conduct a Process Review and Analysis.
Define and document your current business processes, pain points, and strengths. List down what you think your business processes should look like in the future and the corresponding business requirements. It is important to get an ERP system that is industry-specific, with tools and features designed to solve your business requirements. The ROI and long-term benefits of a good fitting system are extensive.
3. Short List 2-3 Vendors
Get a feel for the solution by taking a look at it and navigating with a demonstration. A demo can give you a much clearer picture of what the solution can deliver. This helps to narrow down the list of vendors before choosing the right one. When determining the list of vendors, a business needs to keep in mind immediate needs as well as potential future needs. Hence, a vendor’s after-sales service is important.
4. Submit RFPs to Vendors
Here comes the easier part in the whole process. Sit back and relax a bit while your vendor draft up the best proposal!
5. Find out the total cost of ownership
Uncover "hidden costs" associated with ERP. The costs can include the software, implementation, maintenance, customization, training, support, hardware, updates, etc. You need to consider all of that to determine a Total Cost of Ownership pre and post implementation.
6. Get References and Recommendations
Get vendors to provide customers references. Ask from colleagues, employees, and other contacts what they use or recommend for a company like yours. Conduct research on the internet or hire an ERP consultant if necessary.
7. Make a Decision
Choosing your ERP software and vendor takes a lot of time and hard work, but making the right decision can reap extraordinary rewards and benefits for your company in both the immediate and distant future. It’s important to keep in mind the solution will make your business more efficient, intelligent, and profitable. The right ERP software will automate and streamline your business processes creating long term savings, which is exactly what SAP Business One does.
Want to know what are the TOP TEN reasons small and midsize enterprises (SMEs) choose SAP to help transform their business?
Get it here :
1. Form a Committee, Assess Your Business Needs
Consider the current challenges that your organization faces that would be solved or reduced with the ERP system. Form a committee, there should be representative from each major department.
2. Conduct a Process Review and Analysis.
Define and document your current business processes, pain points, and strengths. List down what you think your business processes should look like in the future and the corresponding business requirements. It is important to get an ERP system that is industry-specific, with tools and features designed to solve your business requirements. The ROI and long-term benefits of a good fitting system are extensive.
3. Short List 2-3 Vendors
Get a feel for the solution by taking a look at it and navigating with a demonstration. A demo can give you a much clearer picture of what the solution can deliver. This helps to narrow down the list of vendors before choosing the right one. When determining the list of vendors, a business needs to keep in mind immediate needs as well as potential future needs. Hence, a vendor’s after-sales service is important.
4. Submit RFPs to Vendors
Here comes the easier part in the whole process. Sit back and relax a bit while your vendor draft up the best proposal!
5. Find out the total cost of ownership
Uncover "hidden costs" associated with ERP. The costs can include the software, implementation, maintenance, customization, training, support, hardware, updates, etc. You need to consider all of that to determine a Total Cost of Ownership pre and post implementation.
6. Get References and Recommendations
Get vendors to provide customers references. Ask from colleagues, employees, and other contacts what they use or recommend for a company like yours. Conduct research on the internet or hire an ERP consultant if necessary.
7. Make a Decision
Choosing your ERP software and vendor takes a lot of time and hard work, but making the right decision can reap extraordinary rewards and benefits for your company in both the immediate and distant future. It’s important to keep in mind the solution will make your business more efficient, intelligent, and profitable. The right ERP software will automate and streamline your business processes creating long term savings, which is exactly what SAP Business One does.
Want to know what are the TOP TEN reasons small and midsize enterprises (SMEs) choose SAP to help transform their business?
Get it here :
| top10_smeschoosesap.pdf |
