Tag Archives: Enterprise Resource Planning

A beginner’s guide to choosing the wrong ERP software in 5 steps

We often write about Enterprise Resource Planning solutions and what businesses should be looking for in terms of budget, functional fit and other technical aspects.

After having implemented ERP software for more than 250 businesses we can surely say that choosing an ERP software solution requires a strict process, clear team responsibilities and the expertise of a trusted third-party advisor.

But what if you are at your first attempt and want to speed up the ERP selection process? What are the risks that you should be aware of to avoid implementing the wrong solution?

In today’s article, we give an overview of what (from our experience) typically leads businesses to implement the wrong ERP software solutions.

#1 – Overlooking the “ERP readiness” signals

The first (and easiest) way to start your journey to a new ERP software solution with the wrong foot, is to delay your ERP implementation. Not implementing an ERP software when the time comes can be a costly exercise for the whole business.

In the article “6 ERP readiness signs growing businesses are likely to encounter”, we identify the main readiness signals as:

Your business has outgrown the current accounting software;
Your business is using too many manual workarounds;
The current solution is running too slow;
Your capabilities to expand a geographic expansion are limited;
You need new tools (eCommerce, EDI, AP Automation,…);
You need better reporting (“A single source of truth”).

When these six signals start showing themselves in your business, it’s time to start looking at a new ERP software solution.

#2 – Not defining your technical requirements (In details!)

ERP requirements should be defined prior to commencing any research and selection process. The requirements list should come from every department and area of the business including finance, warehouse, logistics, manufacturing and customer service to name a few.

The requirements list should define the purpose and goals of the new system and answer the question – “how does the perfect environment look for my various departments and for us as a business?”.

It is vitally important to structure the ERP selection process according to your requirements list to ensure success in the short, medium and long-term.

Businesses that don’t have a clear idea of what the new ERP system should possess are likely to encounter a number of challenges post-implementation.

Our advise is for you to take enough time to write a requirements checklist for the new system or to work with an experienced ERP provider to guide you through the process.

#3 – Not considering Cloud Vs On-Premise

Cloud ERP or On-Premise ERP? If you haven’t asked yourself this question, you probably should. ERP software solutions are rapidly shifting to a Cloud deployment model for several reasons – cost-effective implementation, fully managed and maintained, low OPEX, enterprise-grade security, and more. On the other side, an On-Premise ERP setup means that you have to implement and maintain the technology environment to host the software.

There is no right or wrong answer when choosing between the two. However, you should be aware of the advantages and disadvantages that these solutions present. Ultimately, you should look beyond the 5-year ROI to truly understand the benefits that one setup will give you over another.

#4 – Overlooking to capabilities of a modern ERP

Think about your new ERP software as an enabler, rather than a cost centre. New technologies available to businesses of all industries and sizes mean that you can unlock further efficiencies for your business.

Large high-tech companies are already pioneering disruptive technologies, so you don’t have to. Big Data, Artificial Intelligence, IoT, Customer Experience Platforms to name a few. When choosing a new ERP software, keep in mind these new technologies.

#5 – Not defining your budgetary requirements

How much should you spend on your ERP implementation? Have a rough idea of the budget available to the implementation of a new ERP for your business. This will help you narrow down your research and avoid wasting time researching the wrong solutions.

The budget is a critical part of any ERP implementation; it should be discussed internally and with your third-party provider upfront in order to set the right expectations.

Conclusion

At Leverage Technologies, we have implemented ERP software for more than 250 Australian businesses since 2005.

Over the years, we have developed a deep understanding of how different ERP solutions serve the needs of various businesses, from any industries and size.

For more information or to start your journey to a new ERP software solution, call us on 1300 045 046 for a no-obligation consultation or email [email protected].

ERP of the Future: 2018 Top Trends in Enterprise Resource Planning

Leave a reply

Enterprise Resource Planning has evolved appreciably over the past decade or so. It’s very advanced today, and it continues to grow into a versatile, scalable, and multi-faceted resource that businesses of all sizes may leverage to catalyze performance enhancements in the value chain.

Our predictions for the top ERP trends to track going forward

After having implemented ERP software for small and medium-sized businesses for over a decade, we believe that the top innovations will come in the following areas.

#1 – The Internet of Things (IoT)

IoT is the digital connection or networking of otherwise independent devices or systems, such as cars, assembly lines, and electrical equipment. By feeding real-time data on product usage, performance, or technical problems into a centralized ERP database, IoT provides the insights required to improve quality, streamline production processes and lower costs, customize the customer experience, or manage logistics more efficiently.

IoT lends itself to various outcome-oriented service models. In consumption-based insurance, for instance, the provider uses vehicle-installed software to track mileage and monitor their customers’ driving habits. The system sends the information to the insurer’s business management solution autonomously, enabling them to calculate monthly car-insurance premiums for a customer based on usage and risk assessment.

#2 – Software-as-a-Service ERP

Many businesses are no longer finding in-house legacy ERP financially or operationally tenable. They’re progressively shifting to SaaS ERP to reduce the total cost of ownership (TCO). The approach eliminates the bulk of capital injections associated with acquiring major tech solutions for business.

SaaS enables companies to deliver a host of ERP applications to end users, such as employees and suppliers, via the cloud. It provides access to data and user interfaces or portals through any internet-connected device. With the ability to work from any location with internet access, employees can build greater adaptability and responsiveness to dynamic demands of their official positions.

The model allows companies to scale, upgrade, and switch between applications without investing in new hardware. They may introduce new software to the mix as needed, including CRM, talent management, or inventory control, and still, keep the benefits of cloud ERP integration.

#3 – Artificial Intelligence (AI) and Machine Learning (ML)

Through machine learning, ERP solutions can become smarter to the point of predicting future business opportunities and risks without human intervention or explicit programming. For example, ML algorithms may incorporate real-time data from various internal and external sources, enabling organizations to work out production costs and avoid setting loss-making prices for their products.

AI will play a critical role in enabling ERP solutions to make decisions autonomously. It’ll reduce human intervention to just passive supervision, allowing decision-makers to commit more time to value-added workflows.

To make it work, an intelligent ERP first records user input and the ensuing sequence of actions. Its built-in ML capabilities enable it to draw from historical data and to provide viable recommendations. With time, the system learns to make the right call every time without user input.

#4 – Big Data

Primarily, ERP utilizes a centralized database to support a broad spectrum of business functions. However, companies need much more than structured data to understand their markets, personnel, and customers better. Big data analytics helps these organizations decipher the sheer chunks of structured and unstructured data flowing in very fast from both internal and external sources.

For instance, in customer relationship management, big data enables marketers to extract and analyze data from sources such as social media, contact centres, and sales to enhance customer service, predict demand trends, and calculate ROI on several marketing initiatives.

ERP with Big Data capabilities can also help recruiters with talent acquisition and management. Such a system extracts invaluable job market insights from job boards, social media, and HR systems, enabling employers to meet their staffing needs.

Is your organization well-positioned to leverage ERP systems of the future? Powered by ML algorithms, AI, and IoT, the business management solutions are getting smarter and more versatile. Talk to us today about implementing best in class ERP software for your business!

8 considerations to help your business choose the best ERP solution

Leave a reply

Looking to implement an Enterprise Resource Planning solution for your business?

Enterprise Resource Planning has evolved drastically over the last few years. Big Data, Artificial Intelligence, IoT and Cloud Computing have all contributed to better-performing ERP solutions that are easier to implement and use.

Here are our top recommendations for the key aspects to consider when choosing an ERP solution for your business.

#1 – Technology vs business benefits

You don’t implement Enterprise Resource Planning Solutions because they have great technology. You implement ERP Solutions because they offer real business benefits – improved cash flow, better customer satisfaction and staff retention – helping you run a better business. But, the world of ERP (and most other business improvement technologies) is rapidly changing and being influenced by technological improvements. Think of:

Cloud – Ignoring for a minute the financial implications of the cloud vs on-premise question consider the computing power that the Cloud gives you access to. Scaleable processing power at your fingertips – scale up and down with ease.
Mobility – A must-have in today’s world! Access your data, reports and fully functioning ERP solution anywhere, anytime via a web browser or apps.
Internet of Things – The connected world is here. The internet, cloud and other technical enhancements allow us to connect multiple devices and to share relevant information across platforms. Add into the mix Artificial Intelligence (AI) and you start to realize just how important technology is becoming when choosing an ERP solution. Think of a connected world where the warehouse is alerted of a late delivery when the truck that is scheduled to make the delivery has a technical issue or is in peak traffic. Your ERP solution is notified and an SMS or other notification is automatically sent to your company sales team and the customer. That’s how we use technology to improve customer service.
E-commerce – Trade seamlessly 24×7 with e-commerce and EDI integration.

#2 – Functionality of the solution

It goes without saying that the ERP solution you choose for your business must offer the core functionality you require to run your business and make improvements to business processes (quicker quote to cash timeframes, better information for decision making and advanced planning and budgeting tools).

When reviewing an ERP solution make sure you carefully evaluate all functional requirements – Finance, operations, Service, manufacturing, inventory and reporting. Ask a “functional head” to document and review requirements for each business function. As an example, an inventory manager might review the functional requirements for purchase planning, goods receipting, warehouse management, inventory reporting and stock movements. Create a checklist of requirements and manage that checklist with potential providers.

#3 – Big Data, Analytics and Business Intelligence capabilities

Big Data is becoming ever more important. In today’s connected world we are generating big data volumes. These data volumes are of no value unless we can sort and analyse data into meaningful information for decision making. A few considerations here include the following.

Data volumes are increasing – Choose a modern ERP solution that can cater to large data volumes from multiple sources – ERP, CRM, social media, e-commerce, customers and suppliers.
Analytics – These large data volumes need to be sorted, checked and reconciled. With data being made available from so many different sources it is critical that the analytical tools we use can check and reconcile data for accuracy before presenting the data.
Visualization – We retain the visual aspects of reporting. As a result, what we want is great visualization tools for reporting. Make sure that the reporting, KPI, BI tools that you use offer a variety of visualization opportunities.
Ease of use – This goes beyond simply being able to view and schedule reports. In today’s connected, mobile-first and fast-paced world we need the ability to write our own reports, dashboards, KPIs and data analytics. New age ERP Solutions cater to this requirement with pre-written data analytics and cubes to allow users to create their own reports. As an example, a sales data analytics layer will allow a sales manager to write his or her own report based on all the available fields available in the sales analytical layer. The ERP provider will have pre-written the analytical layer with all of the typical data that you would require to write a sales report – items, customers, sales order details, credit notes, sales volumes and pricing. This allows the sales manager (writing the report) to pick the data they want and simply drag the required fields into the report. Simple report writing without requiring technical knowledge.

#4 – ERP vendor

Make sure you choose an ERP solution from one of the top ERP providers. With technology moving quickly you will want the backing of an ERP vendor that has the investment in R&D, people, technology and processes to take you on a journey to success. The pressure on smaller ERP providers is increasing as technology advancements gather pace. When it comes to ERP vendors only the fittest will survive.

#5 – ERP reseller / partner

Choosing the right ERP product for your business is half the solution. A critically important decision is the ERP reseller (partner organization) that will implement the solution for you!

A great ERP solution is worth nothing unless you have a partner organization to help you implement the solution. Requirements include system scope, system configuration, user training, user acceptance testing, data conversion, go-live support, and all-important post-go-live support. Your relationship with the implementation partner should be more than a supplier relationship – your ERP implementation partner will be working closely with all team members, across your business, and will have access to sensitive company data. Your investment in ERP is likely to be substantial and project success is critical – make sure you choose the right partner. Some tips and tricks when it comes to ERP implementation partner selection:

Culture – Make sure the culture of the implementation partner is similar to yours.
People – Interview the consultancy and project management team that will be working on your implementation. This will give you an opportunity to get a better understanding of each team member, their previous experience and expertise.
Experience – In similar industries and the implementation of ERP for similar customers is important.
Agreement – Make sure you have a fair but comprehensive agreement in place to manage the implementation process.

#7 – Cloud vs On-Premise

No specific answer here. Do your homework and make a decision that is right for your business. There are multiple advantages to the Cloud but, it’s not for everyone. Consider the following when deciding between cloud and on-premise:

Current infrastructure – At a time when your infrastructure is nearing the end of its useful lifespan and has been fully depreciated is always a good time to consider the cloud.

IT Resource – Your companies access to good, internal, IT resource will have an influence on your cloud vs on-premise decision. If you don’t have internal IT resource then, you are more likely to move to the cloud to outsource infrastructure requirements,

investment – Cash flow and investment requirements are quite different for cloud vs on-premise. On-premise requires a much higher upfront investment.

Scale – Cloud allows you to scale up and down (users, processing power, and functionality) easier than On-premise and therefore lends itself to businesses that are more exposed to fluctuations in user count and business conditions.

#8 – Budget

Unfortunately budget always has an influence on ERP implementations and product selection. There is no point in reviewing and selecting an ERP product that is well beyond the budget that your business has allocated to get the job done. At the same time, ERP Solutions is not the sort of investment that you want to “cut corners” with. Make sure you have the appropriate budget allocated to your ERP implementation.

Top 3 ERP Misconceptions & Myths Businesses Want To Believe

Leave a reply

In this article, we are going to review some of the common ERP myths & misconceptions that often come up during our consulting sessions. If you are going through an ERP selection/evaluation process for your business, we hope that this article will help you shed some light on what ERP is, what it’s not and what your options are.

After having implemented Enterprise Resource Planning software for more than a decade, we have come across a number of situations where the perception about these solutions is far from reality.

Enterprise Resource Planning is only for large businesses
ERP is only for manufacturing companies
ERP is too expensive

Here is our view on why Enterprise Resource Planning software is misinterpreted in these instances, backed by real-world scenarios and articles that we have written in the past.

#1 ERP is only for large organisations

The top misconception about Enterprise Resource Planning is that only large organisations have the necessity for ERP solutions.

Our answer is that you don’t have to be big, but you need to have a growth mindset and the ambition to scale your organisation. In fact, ERP software gives you the ability to streamline your operations and increase productivity, no matter what the size of your business!

From Finance to Inventory, Manufacturing, Reporting and more. ERP gives you a “single source of truth” that is used across all the areas of your business to consolidate disparate systems and eliminate manual processes.

Although large organisations have a major appetite for ERP software solutions, small and midsize businesses can also go to market for a new ERP to step up their capabilities.

From our experience, businesses that are turning over $2M+ and are still using a basic accounting package, typically start seeing the “ERP readiness signals” that lead to the implementation of a new system.

#2 ERP is only for manufacturing companies

Manufacturing businesses have without a doubt a large degree of interest in adopting Enterprise Resource Planning solutions. It is no secret that industries such as food & beverage but also discrete manufacturing see ERP has the key to success.

However, a common misconception is that unless your business has a manufacturing component to it, ERP has no reason to be adopted.

From our experience, this is certainly far from the truth as our 250+ ERP customers span across virtually every industry! From Wholesale Distribution to Professional Services, Construction, Healthcare and many more, we have seen ERP software work beautifully in a range of different situations.

To further disrupt this common ERP misconception, check the following case studies:

#3 ERP is too expensive

Budgeting for ERP software is not an easy task and requires involvement from multiple parties. The good news is that there are multiple price points to choose from according to your business size, budget availability and desired outcomes.

“ERP is expensive” – Our response to this common ERP misconception is:

There are multiple tiers of ERP software solutions to accommodate the needs of businesses of multiple sizes. If you are a growing small business, look for “entry-level”, Tier 3 ERP software solutions to start with.
ERP shouldn’t be looked at merely as an expensive exercise! In fact, ERP systems are often implemented when your actual internal systems are limiting your business. By removing the limitations of your current system, you open up to a new way of moving your business forward to better operations, enhanced capabilities and growth. For more information, read our recent article about “the cost of not implementing an ERP solution”.
Modern technologies have transformed the way you use and pay for ERP software. Long gone are the days of costly, ERP implementations. The advent of Cloud Computing technologies means that your ERP software is now delivered to your organisation “as a service” and the CapEx model is being disrupted by an OpEx alternative. The result? Learn all about Cloud-based ERP and what it means for your business in this article.

Conclusion

If you look at the common ERP myths, it is clear how most companies might be missing out on a true opportunity for growth.

If you still think that ERP is only for large organisations or enterprises, likely in the manufacturing industry, that have access to massive implementation budgets, think again!

Today’s ERP is Cloud-based, adaptable and scalable, which means that any organisation with a growth mindset can step up to a whole new way of running their business.

Interpreting ERP Investment Proposals: Are You Comparing Apples With Apples?

Leave a reply

ERP investment proposals can vary greatly even for the same project.

If your business is considering implementing an Enterprise Resource Planning (ERP) solution you might be wondering why there is such a substantial difference in price between the ERP investment proposals provided by different companies.

After all, your business’ requirements are unique and clearly defined. So, where exactly does the difference in price come from?

Here is our advice on understanding the differences between ERP investment proposals from various solution providers so to always compare apples for apples when it comes choosing the best fit for your business.

Receiving the perfect ERP investment proposals: It all starts with your requirements

First of all, it is highly likely that you will be considering multiple different ERP solutions and possibly different providers, including resellers and implementation partners of the same solution. Analysing different solutions gives you the ability to compare what’s available on the market:

Cloud vs On-premise;
Different user interfaces, look and feel;
Generic vs best of breed solutions;
Different functional solutions;
Alternative implementation and support options;

Let’s explore the key reasons why you might get very different proposals, at very different price points from alternative ERP solution providers.

#1. Are you comparing similar ERP Solutions?

ERP Solutions vary greatly in complexity and functional “footprint”. The more functional the ERP solution the longer and more expensive (consultancy) will be to implement the solution. Greater “standard” functionality is a double-edged sword – more functionality to use and more to implement.

More functionality requiring implementation will stretch out the time to deliver and will cost more in consultancy dollars to get the job done. Generally speaking, ERP solutions are available in tier one, tier two and tier three markets. Make sure that the solutions you are comparing are fit for purpose (there is a strong functional footprint that aligns closely with your requirements).

If you are not comparing similar solutions you are likely to see a substantial difference in investment required. This is particularly true of implementation pricing which varies vastly between tier one (Enterprise Solutions for large multi-national organizations), tier two (Mid-market ERP) and tier three solutions aimed at smaller businesses. We are often contacted by companies comparing five different ERP solutions, two from the mid-market (tier two) space and three from the small end of the market. This is not comparing “apples with apples”. In summary – when comparing investment summaries make sure that you are comparing ERP Solutions from the same “tier”.

#2. Implementation methodologies vary greatly

Is the ERP implementation partner offering a fixed price or a “do and charge” implementation? These two different approaches will yield quite different investment requirements. A waterfall approach assumes a fixed scope / fixed price implementation. An agile methodology is a “fits like a glove” build and consult on an “open budget” basis. Two very different approaches that will yield two very different budgets and ERP investment proposals.

#3 Assumptions are being made

When providing a proposal for the implementation of ERP solutions, your implementation partner has to make certain assumptions which will affect the ERP investment proposal.

Some examples of such assumptions include:

Availability of internal IT resources;
Current data formats and the “state” of current data from legacy systems;
Internal (company) project management resource;
Technical experience of team members;
Functional requirements (even after a scope of works there can be some areas that are not 100% clear).

How do the assumptions that your implementation partner makes affect your ERP investment proposal? Let’s use data conversion as an example. Data will need to be exported from legacy systems into your new ERP solution. In theory, this is straightforward:

Extract data from legacy solutions;
Put the data into Excel or Excel type templates for “checking”;
Use technical data upload routines within the ERP application to upload data and run data integrity checks;
Reconcile the data for accuracy.

Sounds easy and it can be. But, data transfers can also be complicated and affect the pricing of your ERP project. Factors which can have an effect on the consultancy time needed to upload data from legacy systems include:

Number of data sources;
Availability of internal technical expertise;
Status of legacy data (how “clean” is the data);
Are internal resources available for data checking and reconciliation?
How well has data been maintained?
How well do staff members understand the data?
Data volumes;
Data transfer requirements – for legal reasons (for example warranty or traceability requirements).

The answers to each of these questions will have a substantial impact on ERP implementation pricing. If one provider of ERP makes the wrong assumptions, they might provide a very different proposal to someone that has done their homework correctly and understands exactly what is required to convert your data.

A good ERP provider takes into account all of these factors to ensure an accurate investment proposal.

#4. Has the scope of works been correctly reviewed?

Providing an accurate implementation proposal for ERP requires an accurate assessment of scope. Two different providers might have different views on the scope of the project and can provide two very different proposals for implementation.

Conclusion

Many companies have a hard time interpreting the variance in pricing from different ERP proposals. Your ERP investment proposal can vary due to factors such as the solution being scoped, the assumptions of your implementation partners, the methodology being adopted and more.

Correctly implemented ERP solutions provide improved cash flow, increased customer satisfaction and happier team members. Evaluate potential providers and their proposals carefully to ensure that you make the right decision for your business and also make sure that your providers understand your requirements and lay the right assumptions for scoping your project.

At Leverage Technologies, we help Australian businesses find and implement the right ERP solution to grow smart. For more information or to speak to a consultant call 1300 045 046 or email [email protected].

Accurate inventory is not a myth: Enabling accurate inventory forecasting through ERP

2 Replies

In today’s post, we are going to explore how Enterprise Resource Planning (ERP) empowers wholesale distribution and manufacturing businesses with advanced inventory forecasting functionalities to resolve internal conflicts between warehouse, sales and finance.

The debate between your Sales, Finance and Inventory/Logistics Managers may sound something like this:

Logistics Manager; “If sales forecast more accurately and sell to a plan we will be able to hold the right inventory levels…”

Sales Manager; “If purchasing and the warehouse team held the correct stock levels and kept us informed we would be able to sell more…”

Finance Manager; “We need more accurate stock holdings and we must reduce inventory levels to reduce the burden these stock levels place on cash flow…”

These are the three “most seen” competing points of view from most small to medium-sized businesses in the wholesale/distribution and manufacturing sector. The good news is, accurate inventory forecasting is not a myth!

So, how can an ERP solution help you manage these conflicting points of view and forecast inventory demand at any given point in time?

Accurate inventory forecasting is not a myth

ERP solutions give you the functionality to provide faster, better access to information for better decision making. This is particularly true with regards to inventory management for wholesale distribution and manufacturing.

Here is how an ERP solution can help resolve your internal conflict and give you accurate inventory forecasting functionalities.

Planning

The essence of an ERP solution goes well beyond invoicing, customers, financials and suppliers. Planning is at the heart of a good distribution and manufacturing ERP solution.

Planning tools for purchasing and production planning will help balance the supply and demand equation to consider thousands of transactions and recommend a plan. Think of the elements of any plan for a wholesale distribution or manufacturing business:

Lead times;
Economic order quantities;
Container and shipping management;
managing multiple suppliers;
forecasts and min/max stock levels.

It is impossible to manage all of these “moving parts” without the automation that an ERP solution provides.

A good planning solution will map out all relevant components to recommend purchase orders for raw materials and works orders for production planning. A good planning solution balances thousands of transactions to make the right recommendations.

Information

Decision making requires information; timely, relevant information. A good ERP solution provides relevant information such as lead times, current stock levels, historical sales, supplier on-time/in full reporting and expected delivery dates with detailed available to promise.

When your various business departments get access to all the information in real-time from your supply chain, your staff is empowered with the accurate data they need to make informed decisions.

Analytics

As mentioned, data empowers our staff with accurate information to make informed decisions. In today’s world, we have access to “big data” from multiple sources.

Let’s put this data to good use through analytics to help us with decision making. Decision making is about timely, accurate information. A well-implemented ERP analytics toolset will give you the information that you need when you need it to help you with the planning and forecasting.

Forecasting

Tough to get right in any business. Not to worry, ERP gives you access to automated forecasting tools and relevant data for forecasting historical sales, market trends and product updates.

Mobility

We live in a mobile world. All of the functionality that we require from our ERP solution should be available from a mobility device. Once again, the emphasis is on timely, accurate information.

Decision making can’t wait, and neither should you!

Access to information where and when you need it means that mobility remains important.

Conclusion

The debate between sales, warehouse management and finance can be solved by implementing an ERP solution to empower your business with advanced inventory forecasting functionalities.

Implement an ERP solution to provide your business with the information, analytics and planning tools to close the gap between planning, scheduling, sales, inventory management and finance.

At Leverage Technologies, we have been helping Australian businesses choose and implement the right ERP software to grow smart. For more information feel free to call us on 1300 045 046 or email [email protected].

5 ERP Replacement Signals Every Growing Business Should Look Out For

Leave a reply

ERP software has the ability to streamline your operations and increase productivity, no matter what the size of your organisation.

However, as your business grows, your ERP system may struggle to keep up with the increasing complexity. When this is the case, it is important to identify the ERP replacement signals as it may be time to upgrade your system or even start shopping for a completely new solution.

Here is our list of the top 5 ERP replacement signals that growing businesses should look out for

#1 You Have to Use Another Program

Enterprise Resource Planning software should provide you with the ability to keep everything within the same database. This includes everything from finances to human resources. One of the main benefits of ERP is that you have a single program as opposed to using multiple programs in order to get the job done.

If you find that you suddenly have to invest in another program because your ERP software is incapable of providing you with the desired level of functionality, it may be time to replace your existing software.

#2 The System is Slowing Down

In some instances, a system will slow down after you have entered so much data. Not all solutions are capable of dealing with big data. As a result, you will find that even the simplest tasks take longer to perform. When this happens, you may not be able to increase the speed, which means that you might not have chosen a scalable ERP solution. If this is the case, upgrading or changing solution might be the the best option to keep up with growth.

#3 It isn’t Cloud-Based

There are a number of cloud benefits. If your ERP software is housed on your server, you are limiting yourself tremendously. You won’t have access to any of the data or reports when you are on the go. If you require a financial report while you are on business travel, someone will need to run the report and email it to you. Not having data available in real-time can make it more difficult to make important decisions regarding operations.

Cloud-based solutions offer you more flexibility in the workplace.

#4 New Features are Not Present

There are a lot of companies that have grown dependent on their ERP systems. When you invest in ERP systems, you need to look at the various features that are present. It’s possible to manage your finances, HR, procurement, supply chain, and more within your system. However, if you are lacking the latest features and there is no availability to choose add-ons, you may be limiting yourself. This means that you may not be able to enjoy the level of profitability and productivity that other businesses have.

Taking the time to explore new ERP systems may be what’s needed to improve your operations and expand your technology.

#5 Integration is Poor

Consider the various processes that you use in order to keep your business up and running. Various departments should be able to integrate into your ERP system. This will involve integrating the system into your operations, allowing you to streamline everything.

It’s important to explore your ERP requirements to ensure that you choose a software solution that can improve workflow while also helping to a line of the different departments that you have. You can receive real-time information through reports, lower operational costs, as well as enhanced collaboration. However, if your integration is currently lacking, it may be time to upgrade your system to one that can provide a more consistent infrastructure as well as high user-adoption rates.

ERP is only as helpful as the system’s features allow it to be. You want to do everything you can in order to improve efficiency while reducing risk. If you pay attention to the replacement signals, you will know when it’s time to upgrade your system so that you can enjoy a greater level of functionality and begin lowering both management and operational costs.

Conclusion

As growth put additional pressure on your internal systems, your business needs to look out for the five key ERP replacement signals.

Things like islands of information, system speed and lack of functionality can translate in poor performance for your business. When the time comes, you might be presented with the options of upgrading your current system or replacing it with a new ERP software.

At Leverage Technologies, we have helped hundreds of businesses implement the right Enterprise Resource Planning to grow smart. For more information or to speak to a consultant call us on 1300 045 046 or email [email protected] today.