ERP Implementation: The Ultimate Guide to Success
Enterprise resource planning (ERP) solutions have the ability to unlock your organizations potential by streamlining daily processes, like financial management for example, and boosting client and customer engagement. However, several businesses are struggling to grasp the concept of not only how ERP solutions work and how the implementation of ERP is done, but they're also curious as to what benefits it would bring to their business.
The reality is that 55-75% of ERP projects ultimately fail.
ERP implementation comes with a price. Not only numerical figures, but time and energy as well. It's absolutely essential for your organization to research and understand the process thoroughly before jumping into an ERP solution blindfolded. Having said that, we've put together this extremely in-depth guide on steps you should take to avoid failure, as well as exercising the best practices for success. We'll also be discussing the benefits of such a solution with expert tips along the way.
What is ERP Implementation?
Before we get started, let's understand what the implementation of ERP actually is. It's the process of collecting data on current business practices, strategic planning, installing software, testing software, streamlining operational procedures, cleansing and migrating data, managing change, training users, going live and maintaining support. Implementation of ERP is just the first step, but it's not a one-time setup, rather a continuous process or life cycle. Organizations green-light ERP implementation for a plethora of reasons. For example, streamlining operations, reducing manual labor, improving customer satisfaction or unionizing business processes. Keep in mind, the implementation process, timeline and complexity is dependent on the number of modules being deployed, data conversion, customization required and project management resources available.
Benefits of ERP Solutions
It's no secret. ERP solutions are expensive. There's a high cost to implement the system and then further costs to maintain it. Yet, organizations and businesses seem to use ERP every day and continue to purchase new systems, further improving their existing systems. For many, this does not come as a surprise. Considering the implementation of ERP systems can make your business run smoother by unifying and protecting data, automating processes and producing easy-to-understand reports, it's a no-brainer. With these and many more capabilities, the benefits of an ERP solution in business can make day-to-day operations and long-term planning much more efficient.
Steps to Successful ERP Implementation
I. Planning
II. Installation
III. Data Transfer
IV. Testing
V. Training
VI. Launch
VII. Post Launch
I. Planning
The first step is to understand why your organization needs the implementation of ERP. Define the vision, scope and need of an ERP solution. Furthermore, you will need to assemble an implementation team that can communicate effectively, efficiently and has the knowledge and willingness to guide the project from start to finish. Team members need be chosen based on expertise and knowledge in relation to the task at hand, as they will be the most affected and the most willing to see the ERP implementation software succeed. The team should include the following roles:
Team members should examine and document existing business processes and map out how they flow from one department to the next. It's vital to identify common issues or errors, duplicated and redundant efforts and missed opportunities with customers. Understanding your existing business processes will help you set goals and objectives for a smooth ERP implementation process. Additionally, figure out key performance indicators and quantify your desired results. Also, Define the exact requirements you want in your ERP solution and put together a reasonable timeline and budget.
II. Installation
Installing ERP software is your opportunity to evaluate current operations and re-engineer business processes into standard operating procedures. Define which processes to automate or to keep manual, then design a blueprint of how new practices will flow. The responsibility of installing the ERP software and building the infrastructure is on the application developer. Be cautious, don't lose track of progress and keep a flexible time line. At the end of the day, you are responsible for your ERP implementation, not the vendor or consultant.
III. Data Transfer
The next step in the implementation journey is the transferring of data, or data migration. Many organizations store supplier, customer and physical asset records in databases that contain errors and redundant information. This data needs to be reviewed and edited accordingly to maximize accuracy and uniformity before the data transfer or migration even starts. All outdated information should also be removed at this time. Once the data has been verified and updated, the application analyst transfers the data to the new system. This typically involves implementing new databases, transferring data and mapping database fields between ole and new systems.
IV. Testing
Now is when the quality assurance test engineer comes in to test the ERP system. It's important to make sure that all functionality, interfaces and reports work in real-life situations and transaction data. Users should also validate that business processes are communicating correctly and accurately between departments. It's essential the ERP system is thoroughly tested before launch.
V. Training
This is the step that is going to consume significant time, energy and effort. Employees are expected to carry out normal day-to-day responsibilities throughout the process. How long this training takes fully depends not only on the size and complexity of the chosen ERP solutions, but also on the mentality your employees have about adjusted work flow. Prioritization of in-depth training provides opportunities for users to give feedback and for the implementation to act accordingly.
Communication between staff, team members and the vendor can decrease the likelihood of lost productivity after launch. Keep in mind that 56% of ERP implementations result in some form of operational disruption after launch, which is frequently attributed to insufficient training. However, there are vendors that also provide training to users and offer on-boarding support to make implementation efficient. Be sure to ask your vendor what type of support it offers as it may include classes, online learning modules or written manuals.
VI. Launch
Depending on the scale of the ERP project and available resources, organizations can choose three different approaches when going live and launching the ERP software.
All-Out: All users transition from the legacy system to the new one in a single day. This is the fastest and cheapest option, but be aware of technical difficulties as they can cause major operational problems.
Phased: Users transition by department or function. The implementation team members can improve the transition period with each department, but the process will take longer and integrating ERP modules individually can be difficult.
Parallel: Users run both systems simultaneously. Since there's a legacy system to fall back on, this is the least riskiest approach. However, users tend to spend more time duplicating work on top of cost inefficiency as running two systems at once is expensive.
Be flexible and ready for unexpected challenges on launch day. It's a good idea to have additional or temporary IT staff on hand, as well as employees who can work overtime. Avoid system downtime by developing a communication strategy. Once the ERP software has launched, test and audit the system again to verify reliability, accuracy and speed. Prioritize the balance sheet, as well as the inventory and accounts receivable ledgers. IT should support users as they verify, document and modify businesses processes in the live ERP system.
VII. Post Launch
There's a common misconception that once the implementation of ERP is live, that's it and you're done. Unfortunately, it's not that simple. Implementation of ERP requires ongoing maintenance of the ERP software and support for all users who work with it. Budgeting time and resources to identify errors and fix them will be vital throughout the ERP solutions life cycle. Additionally, after going live, you should start evaluating the success of the ERP project. Take key performance metrics of objectives and goals of the project into consideration. Such as: costs compared to budget, ROI (return of investment), decrease in human error and increase in supply chain or manufacturing productivity.
Common ERP Implementation Mistakes
| Falling Back to Legacy Systems | Lack of Support | Vendor Aggression |
|---|---|---|
| Don't make a bad process faster with automation. Consider how to use the ERP solution to streamline your business, reduce duplicate work and manual labor, and improve employee communication and customer satisfaction. | The implementation team members should seek support from upper management. Make sure to get senior sponsorships as early as possible and manage expectations throughout the entire process. In fact, 65% of executives believe ERP systems have at least a moderate chance of hurting their business due to the potential for implementation problems. | Don't let vendors decide what you need and oversell you on unnecessary features. Define your ERP requirements early in the planning process based on your organizations goals and objectives. If possible, consider an industry-specific solution. |
| Short-Term | On-Premise ERP vs. Cloud-Based ERP | ERP Misconceptions |
|---|---|---|
| Don't make major business moves with short-term goals in mind. Plan for the long-term. Consider events like future upgrades or increasing the scale of the ERP software. Keep in mind that 23% of businesses are unable to grow as quickly as they'd like because they lack the tools required in their existing ERP system. | If your company doesn't have the financial backing to properly implement an on-premise solution, then consider utilizing a cloud-based ERP system. The initial costs are lower, and fees are charged by number of users or resources consumed. | Don't be misguided. Understand the realities of ERP implementation. Be realistic about timelines and budgets. Also make sure to give your project team and IT staff the resources they need to be successful. In fact, 61.1% of ERP implementations take longer than expected while 74% often exceed budget. |
ERP Implementation Consulting
ERP implementation consultants should have a proven implementation approach and methodology. Experience in your industry isn't necessarily a requirement for the consultant, but it may make the process efficient and possibly less daunting.
Consultants can help negotiate conflicts between ERP vendors and your business. That being said, vendors are usually motivated to up-sell more software bu pushing rich functionality. However, your business should mainly focus on adding only what it needs in order to simplify the process or generate more revenue.
The benefits of using a consultant are endless. Some major benefits are that consultants understand the ERP software, know how to apply and set the software up, keeps you focused on your ERP project, addresses the fear in organizational change and user training.
Depending on your resources and complexity of the ERP project, a consultant may or may not be right for you.
Conclusion
In the end, the implementation of ERP software can be a long and tedious, sometimes even difficult, process. However, with the right methodology, planning and strategy, you'll be able to dramatically improve your business in the long run.
To understand more about implementation and ERP solutions for your business, please feel free to contact us! You can reach us at 818-484-5004 or email us at sales@biz-techservices.com. Additionally, you can visit our home page for a list of services offered and ERP solutions!
What is ERP Accounting Software And Why Do You Need It?
ERP accounting software is software that enables the organization to keep tabs on financial transactions and data. However, ERP accounting software goes beyond the accounting process core. Enterprise accounting software comprises modules specific to billing and payroll, account receivable, accounts payable, general ledger, and more. Historically, enterprise accounting has been a solution that was installed locally, but with modern-day technology, these solutions can be cloud-based.
Some key features of ERP accounting software's main functions include:
- Billing & Invoicing
- Budget & Forecasting
- Fixed Assets
- Payroll
- Inventory Management
Accounting vs. ERP Accounting
As the world becomes more complex with technological advances, customer expectations for product personalization and data management is increasing. Software that supports operational efficiency of core business processes is absolutely essential. Organizations also require relevant features that serve the dynamics of industry-specific needs and challenges. This also applies to stand-alone accounting and financial management software as they fulfill only limited needs when compared to an end-to end ERP solution. Organizations like to erroneously use the terms accounting software and ERP software interchangeably. In realty though, accounting and financial reporting software is a subset of an ERP system.
- ERP systems are more versatile
- Stand-alone Accounting Software is not built for industry-specific needs
- Accounting Software & ERP solutions are not always GAAP compliant
- Accounting Software does not include sales or customer relationship management (CRM)
Small Business ERP
Benefits of using ERP accounting software include automation, visibility, cross-departmental collaboration, and streamlined processes. Enterprise accounting is set up to address the concerns of small business owners. This includes developing talent in the finance organization, providing inputs into enterprise strategy, and measuring or monitoring business performance. This is particular the case in ERP for small businesses. ERP for small businesses offers better financial control and management.
Financial control software also provides businesses with a full suite of accounting functions to track daily financial operations and generate quarterly and annual financial statements. In addition, enterprise accounting software provides tools for reporting, analysis, budgeting, and planning. ERP for small businesses are designed to make financial control and management easier, while still maintaining reliability even in the most complex organizational situations. Enterprise account software, like Acumatica's, provides users with a feature-rich accounting suite, fully integrated with Acumatica's Customer Management, Distribution Management, Manufacturing Management, Field Services Management, and Project Accounting product suites.
- Ease of Use
- Security
- Mobile Access
- Customization
- Integrated Modules
QuickBooks is Not Enough
Nearly every business uses accounting and financial management software. So, how is ERP accounting software better than stand-alone accounting software? Not long ago, QuickBooks, Sage, and Dynamics GP were undisputed accounting software leaders for small to mid-size businesses. As businesses faced stronger competition and their customers expected faster turn around times and more customization, the needs for ERP software became glaringly obvious.
The use of a stand-alone accounting software, like QuickBooks, can take care of basic accounting functions, banking and limited reporting. However, the standard packages that small and mid-size businesses have used for years, lack the ability to forecast the future. For example, QuickBooks, cannot scale with your company's growth because it only operates on a proprietary database. Such stand-alone solutions were not built to connect company-wide processes and deliver real-time visibility into the status of those processes. As a result, you end up with silos of data that cant provide a transparent and complete picture of your business operations.
The Future of ERP Accounting Software
ERP is increasingly making up a huge part of accounting software products today. Most new products in this category are ERP, as more businesses demand better integration of their operations. Furthermore, businesses are more integrated globally. This is a situation that an ERP software can address better than a stand-alone accounting solution. Granted, the term "accounting software" won't be forgotten easily, however, users have grown accustomed to using it for years. In short, accounting software and ERP solutions may mean the same thing sooner than later, when both systems are sold as a multi-tier bundle rather than two separate products.
To learn more about ERP and accounting and if it’s the right step for your business, speak with one of our experts! You can reach us at +1 818-484-5004 or email us at sales@biz-techservices.com. Additionally, you can check out our Acumatica General Business Edition page to learn more.
eCommerce ERP Integration Solutions Your Business Needs
What is eCommerce ERP Integration?
eCommerce ERP integration is the coordination between a company's eCommerce site and back-end accounting and inventory system. Proper eCommerce ERP integration enables the flow of information bidirectionally between the two systems, meaning data only needs to be entered into the system once. Integration of your eCommerce sales channels with your ERP system allows you to operate more efficiently as a business. Your main types of data - order, inventory, item, customer, shipping, and tracking - are communicated between your once independent systems. Typically, eCommerce ERP integration automatically passes data between your systems, so this eliminates your need to manually enter data from one system to another. While eCommerce sales channels can operate without connections to an ERP, how many tedious practices do you do now that you wish you could get rid of?
Benefits of eCommerce ERP Integration
- Streamline Inventory Synchronization
- Reduce Manual Data Entry
- Auto-Notify Shipping & Tracking Information
- Increased Efficiency
- Cost Effectiveness
Shopify Connector
Our Shopify connector is an integration link for two platforms - Shopify's eCommerce system and Acumatica's Cloud ERP. Not only does this ERP connector work with Acumatica, but is also fully compatible with Sage 100cloud. This Shopify integration supplies all the tools your business needs to improve its order processing strategy, simplify inventory management, pricing, payment, and streamline logistics processes. Bilateral synchronization makes it possible to manage orders in Acumatica and mark them fulfilled in the Shopify integration system automatically. Using our Shopify integration allows for better time management and facilitation of connections between the platform. Biz-Tech's Shopify connector is an essential business productivity tool you need to grow your business, boost your results and help save time and money․
- Simplify Data Flow
- Reduce Order Processing Costs
- Automate Tax Compliance
- Eliminate Manual Entry Errors
- Improve Stability
- Ease Payment Information Handling
Magento Connector
Biz-Tech's Magento connector solution allows companies to easily connect with Magento's eCommerce system and either Acumatica or Sage100's ERP system. This Magento connector makes it possible to link two platforms through bidirectional data synchronization which helps avoid duplicate entries and eliminate errors. The Magento connector facilitates the management of all eCommerce activities such as getting and importing orders, creating shipments, invoices, and credit memos. With the Magento integration in place, automate all eCommerce activities to improve productivity and see results.
- Automate Synchronization
- Eliminate Errors & Duplicate Entries
- Ease of Data Flow
- Simplify Payment Information Handling
- Reduce Processing Costs
- Easily Access Order Information
WooCommerce Connector
The WooCommerce connector is an integration link between the WordPress eCommerce platform and Acumatica's ERP platform. This WooCommerce integration supplies tools to improve order processing, simplify inventory management, pricing, payment and streamline logistics processes. Using our WooCommerce integration will allow for better time management and the facilitation of connections between WooCommerce, WordPress and Acumatica.
- Simplify Data Flow
- Reduce Processing Costs
- Tax Compliance & Tax Regulations
- Eliminate Errors
- Ease of Data Handling
- Improved Stability
CommerceHub Connector
Our CommerceHub connector allows companies to integrate with the industry's leading provider of supply chain solutions for multi-channel eCommerce merchants. The CommerceHub connector provides seamless integration for any organization to connect all their trading partners by securely exchanging documents via FTP. Easy to set up integration mappings and automated workflows can help businesses streamline their processes.
- No Manual Data Entry
- Automated Import & Export Functionality
- Cross-Reference Functionality
- Send Fulfillment Confirmations
- Sync Inventories
- Send PO Acknowledgements
- Import Purchase Orders
Biz-Tech Solutions
At Biz-Tech Services, we offer Acumatica and Sage eCommerce connectors compatible with Shopify, Magento, CommerceHub and WooCommerce. All of our connectors offer seamless eCommerce integration to your webstore. We are proud development partners with Acumatica and Sage and are committed to supplying your business with the correct tools needed for success.
Feel free to give us a call at (818) 484-5004, e-mail us at sales@biz-techservices.com, contact us here or fill out the form below to get started today!
Custom ERP Enhancements That Accelerate Business Growth
Biz-Tech Services offer custom ERP enhancements that will accelerate the growth of your business. Enhancements are ERP integrations that are modules or changes to pre-existing Acumatica or Sage 100cloud modules that automate daily processes. The implementation of these custom enhancements often result in maximized efficiency and reduce operational costs. There are plenty of on-premise ERP enhancements that Biz-Tech can assist you in selecting. Biz-Tech Services specializes in help you shape your software to fit your exact business needs.
Offline Order Entry
Offline Order Entry is an ERP enhancement that allows companies to enter sales orders whilst offline, or when internet connectivity is spotty. It's a native application purpose-built for the iPad and iPhone, so the app is fast and responsive. At trade shows, data connections tend to be unreliable and expensive. With our Offline Order Entry app, you can write orders and access all your order, customer and product info offline. This solution enables effective order management for sales teams. As soon as you’re back online, any orders you entered, created or modified while offline, will automatically be synced. In short, this means no downtime making sales.
- Internet connectivity and speed never interfere with productivity
- Take orders and access customer and product records at all times
- No order loss from technical failures
- Synchronization occurs automatically once a connection is established
- Scanning of product barcodes speeds up order entry
- Product Images will display in order lines
Kit Processing
Kit Processing is one of our most popular custom ERP enhancements. Kit Processing allows users to explode kit components right on the sales order processing screen. Most importantly, there is no need to open another maintenance screen or print a pick list to view kit components. Using the native sales order processing preferences screen, users can control the cost calculation basis for kit items entered on a sales order. In turn, this allows grater flexibility without having to make maintenance adjustments to inventory items. Giving users the option to explode kit components directly and make adjustments to any quantity improves efficiency and control during order entry.
- Simplifies visibility of kit items
- Change kit and component quantities with ease
- Efficiently add kits to orders without having to leave the sales order processing screen
- Powerfully manage kit pricing rules
- Works for stock and non-stock kits
Consignment Processing
Consignment Processing allows for better inventory management. Manage inventory that is stored with a customer but owned by the company. This enhancement makes it possible to track and manage quantities and valuation of inventory in multiple sales locations. The Consignment Processing enhancement simplifies the order process and gives better visibility of unsold inventory.
- Track the inventory sent to the consignee
- Track what inventory needs to be replenished at the consignee’s site
- Return unsold consigned Inventory
- Invoice consignee for sold or used inventory
- Efficient inventory management
Gift Card Processing
Gift Card Processing allows companies to manage gift card payments within the software. Utilizing gift cards lets companies offer perks for customers and drive sales and revenue. Gift Card Processing offers a flexible gift card payment solution for all size businesses and makes accepting gift card payments simple yet affordable.
- Receive batches of gift cards as serialized Items
- Cards are ready to issue as soon as they are received
- Track History of spends and balances
- Load a balance by selling the gift card as you would any other stock item
- Use gift cards as a payment method
- Allows one or multiple customers to use the same gift card
Alternate & Upsell Item Processing
Upsell and alternate item processing is the ideal extension to encourage customers to purchase higher-end products, an upgrade or an additional item. This cross selling system also provides alternate items in situations where items are out of stock. During order entry, if the desired item is out of stock, the alternate item cross selling screen will pop-up and provide a list of items that can be substituted. In addition to cross selling alternate items, a list of warehouses where the desired item is available will also be shown. users will be able to easily select the alternate item and it will switch the line with a cross sell item or warehouse item.
- Easy warehouse management
- Quantity adjustments
- Visual cues
- Full integration
Matrix Processing
Our Matrix Processing software provides additional functionality and streamlined entry of transactions needed to process items with up to 3-dimensional attributes. Complete matrix processing software for tracking quantities for user-definable size and color attributes for each style. Biz-Tech's Matrix Processing software also provides a fully integrated solution across all applications.
- Advanced inventory management
- Collaboration throughout multiple departments
- Combines project and functional management structures
- Efficient communication
Allowance & Deduction Processing
Allowance & Deduction Processing extends Sage 100cloud's functionality to allow the Sage 100 ERP solution to calculate multilevel allowance and deductions on the sales order invoice data entry screen.
Field Service Management
Field Service Management is system for managing end-to-end activities in a field service organization. That includes scheduling, dispatching, invoicing and billing. This provides users with a fully integrated ERP solution for automated repair center and field service management.
Loaner & Rental Processing
Loaner and Rental Processing extends Sage 100cloud ERP functionality for customers who need to track loaner or rental products. This enhancement allows for loan or rent items to be billed for a specific date range, return products back to the warehouse and sell damaged or missing goods from one screen.
Allocation Processing
Allocation Processing helps optimize the fulfillment process by finding and selecting orders that can be shipped based on availability. This allows businesses to shift overhead costs to cost objects using a rational basis of allotment.
Saw something that piqued your interest? Feel free to give us a call at (818) 484-5004, e-mail us at sales@biz-techservices.com, contact us here or fill out the form below to get started today!
The 5 Most Important ERP Modules for 2021
The value of ERP software can best be summed up by its centralization of a wide range of front office and back office processes. There are many different ERP modules available that can be added to a system to further customize the solution for your business. As your business scales, it can be difficult to ensure you’re keeping track of everything. From financial management to inventory management, implementing the right ERP modules can help you manage your business more efficiently.
What are ERP Modules?
Within an ERP system are modules and each module focuses on one area of a business process, including finances and marketing, just to name a few. Each module has its own set of tools and serves their own unique purposes and functions. When implementing ERP software for your business, it is important to consider the types of modules that your business will need and ensure that the vendor of your choice provides them.
Here are the five most important ERP modules that you'll find within an ERP solution implementation for 2021, the specifics on what each module does and how it will benefit your business.
1. Supply Chain Management
Maximizing supply chain management efficiency is an essential business process that needs to be done. Supply chain management is typically complicated due to the considerable number of moving parts. This is where ERP modules and ERP solutions come into play.
Similar to standalone software, real-time data is a vital feature of SCM ERP software modules. The ability to make decisions based on up-to-date data is a huge advantage to those who have it. With real-time information on your supply chain, you could easily catch issues in the production or distribution process before they become a problem. You can also measure the amount of time it takes on average to produce a product and compare that to the rate at which a product is being developed today.
In addition to demand planning, demand forecasting is another key feature of SCM ERP modules. Using predictive analytics, your ERP solution’s SCM module should be able to predict future demand for your products or services. You can then use this data to create a production plan that meets demand but doesn’t exceed it. An effective forecasting tool can alleviate costs by reducing spoilage and excess inventory.
2. Financial Management
Financial management modules are one of, if not the most, helpful tools you can implement in your ERP program. With finances being the backbone of your business, an effective financial management ERP tool will work with every branch in your company. For example, the ability to use real-time sales data to calculate revenue.
ERP at its core is about centralization of workflow and information. Utilizing financial tools will help aggregate and manage how money moves through your company. You have the ability to view the whole of your business's finance in the module. From HR departments to marketing departments. This includes features such as a general ledger, account receivable and accounts payable at the most basic level.
Reporting should also be included in the financial management module. Reports are crucial to managing your finances, and can significantly improve the development of actionable insights through advanced data analysis. Additionally, financial statements can help you develop budgets while also keeping your executives aware of your company’s financial status.
3. Inventory Management
Inventory management ERP software works closely with supply chain management, acting as a somewhat lite version. The basic principle of inventory management is that a business needs to know how much stock they have. This goes beyond simple data analysis and order fulfillment. The information could be used to accurately allocate space for incoming inventory as well.
These modules of ERP are incredibly important because they interact with multiple entities across your business. They are involved from acquisition to final shipping notification and work to achieve maximum productivity through tools such as invoicing, shipping and sales order management. Increases in profit margins, boost in efficiency and more satisfied customers are some of the common benefits of this tool.
It can be up to ten times more expensive to bring in new customers than it is to hold onto existing ones. Efficiency breeds repeat customers, and that’s one of the many reasons why an inventory management module is such a valuable resource.
4. CRM
A strong customer relationship is vital to every business, which is why implementing an ERP CRM solution is extremely beneficial. Using a CRM helps you better manage the sales funnel. Keeping track of your customers, sales and leads becomes a simple matter when you’re using the right CRM tool.
This module can help you manage customers, leads and sales processes. Some basic CRM features that are typically included in these modules include contact lists, interaction histories and basic analytics. These features are core components of CRM that can ensure that you are providing the most relevant product promotions for your customers based on elements such as their purchase history.
CRM modules can also help you find out who your top customers are and target them for potential cross-selling opportunities. You can discover additional sales opportunities where you previously may have thought there weren’t any.
5. Human Resources
Human resources is a module that deals with every department in your company. Because it contains valuable information and processes, it's a highly recommended module implementation.
Because HR software gathers data on every employee, it's constantly generating information from all your departments. An HR module collects information on every employee simultaneously, even if you’re working in different locations or remotely. Information can be shared between departments as needed. Some common HR tasks that can be automated through an ERP software module include tracking vacation days or timesheets or documenting coaching efforts or disciplinary actions. Your HR system can even track bonuses by pulling sales and commission data from a CRM module.
One of the most significant advantages of ERP system modules is the easy collaboration it creates across internal workflows. When systems are kept separate, data has to be shared manually. Therefore, if you don’t have an integrated human resources module, you might need to conduct reformatting in order to share information, which can be prone to human error.
Conclusion
There are countless of ERP modules available in today's market. This article is meant to guide you towards modules that can, and will, greatly benefit your business and maximize efficiency. Make a list of functionalities your organization needs to have as you search for ERP vendors and available modules. Don't overspend on implementing solutions you don't need. New modules are being added to the ERP market, and quickly. Your business may not need every ERP tool on the market, but it's almost certain that you'll find one that will impact your business in a positive way.
If you're interested in setting up your own ERP module solution, Biz-Tech Services can integrate that for you. Check out our Acumatica and Sage 100 pages. If you can’t see your favorite service, our skilled programmers will find a solution that suits your needs. To speak with one of our experts please call us at +1 818-484-5004, email us at sales@biz-techservices.com or submit a form on our contact page.
Cloud Computing in 2021: The Future of ERP
We have all known the advantages of cloud computing solutions. If we talk about the future of ERP, there are various cloud computing trends like hybrid cloud, serverless computing and containers that will rule the industry in 2021. In fact, cloud technologies are now embedded in enterprises’ business strategies. Ninety-two percent say their IT environment (infrastructure, applications, data analytics, etc.) relies on the cloud and is predicted to grow to 95% in 18 months. If that wasn’t convincing enough, 54% of enterprises’ cloud based systems moved from on-premise systems to the cloud. Meanwhile, 46% of them were purpose-built for a cloud computing solution.
The Power of AI in ERP
The use of Artificial Intelligence (AI) in ERP systems to help with (or actually perform) decision making processes. These will be supported by data analytics capabilities that are increasingly included in ERP solutions—or integrated with them. Examples of this trend include continually self-optimizing operational models and intelligent customer interfaces for configure-to-quote. Data analytics in general will play a bigger role in operations management.
Serverless Computing
Cloud serverless computing is a technique for implementing functions in the cloud on a required basis. The enterprises rely on serverless computing as it provides the space for working on the core product without the stress of operating or managing the servers. Such a serverless platform has the potential to change the game of enterprise preferences and conception of cloud adoption with endless advantages.
Hybrid Cloud
According to Gartner, the worldwide public cloud services market is about to grow by almost 17%, computing to produce a gross amount of $266.4 billion by 2020. This is a staggering number compared to the $227.8 billion, calculated in the previous year. Where the actual amount of enterprises using hybrid cloud was 58% in 2019 and 52% in the year 2018, the present year witnesses huge increment. When everybody was discussing this new technological existence, MarketsandMarkets also discussed the increased demand for hybrid cloud computing. They highlighted its feature, focusing on its multiple advantages. What advantages? Speed, Control and Security.
The Future of ERP
Cloud adoption has seen a significant increase over the last few years. The cloud is obviously here to stay. Many organizations are currently rushing to migrate to cloud computing solutions with the belief that cloud based ERP systems go hand-in-hand with advancement. Almost everything in the tech industry is connected to the cloud in some way or another — unless it’s specifically kept in local storage for security reasons. As tech giants and tech startups find new ways to organize, process and present data, cloud computing will further become an integral part of the industry.
To learn more about the benefits of transitioning into a cloud based ERP solution, you can check out our last blog here.
4 Benefits of Cloud Based ERP
Enterprise Resource Planning, known simply as ERP, is management software, usually offered as a bundle of applications that aims to help businesses automate the collection, storage, management and interpretation of data from various sources. With cloud based ERP, business owners and managers can get an integrated real-time view of business processes, resources and commitments.
Cloud based ERP and on-premise ERP each have their own benefits. The best choice for you will depend on your organization’s structure and business strategy. While this post focuses on the benefits of cloud based ERP, it is by no means superior to on-premise ERP. The benefits realized from any technology will depend on project execution before, during and after implementation. Most people probably think, "if it's the same thing, then why jeopardize security with a cloud based ERP system?" It’s important to keep in mind that cloud ERP systems are extremely secure, and data may actually be far more secure than it would be in an on-premise ERP environment.
One company, who shall remain unnamed, recently discovered that its on-premise ERP servers were no match for a ransomware attack. This attack wiped out all of the company’s data. Hoping to shore up its defenses after the attack, the company upgraded to Acumatica Cloud ERP. Cloud-based ERP solutions are simply a suite of ERP apps delivered to users over the Internet, usually accessed via a browser. The software usually does not need to be installed on computers and is offered on a per-user, per-month, flat-rate fee.
1. Cost Efficiency
Some businesses don't realize how much running an on-premise ERP system costs. An in-house solution requires the purchase of software, licenses and related hardware to support the system. On top of that, staff needs to maintain the ERP system. This typically drives up the overall budget. The initial cost of a cloud based ERP system is much lower than an on-premise solution. While subscription costs can add up, many business owners are more concerned about minimizing capital expenditures than reducing operating costs. For smaller businesses, the long-term cost of Cloud ERP may actually be less expensive in contrast to infrastructure costs of an on-premise environment.
2. Increased Security
When it comes to physical security of their data and facilities, small to medium sized businesses can only do so much to prevent breaches. But cloud computing vendors can employ stronger physical security measures at their facilities to ensure data safety. To avoid security breaches, many organizations turn to cloud ERP as cloud vendors tend to have very secure hosting environments. Cloud vendors have a lot to lose – with multiple customers, they are popular targets for security breaches. This may sound like a disadvantage, but in many cases, it forces vendors to develop sophisticated security in order to protect business owners.
3. Easily Accessible Data
When it comes to data access and data storage, cloud ERP has several advantages over on-premise ERP. Cloud technology is more scalable for storing large amounts of data and can provide access to data gathered by IoT (Internet of Things) technology. All of an organization's information and data can be accessed virtually anywhere, as long as there is an internet connection available. Sharing data is easier across locations and departments, and because everyone in the company is interacting with centralized data through a common interface, the likelihood of interpreting the data differently between functions is lessened and opportunity for collaboration is increased.
4. Fast Implementation
Cloud ERP systems are faster to implement than on-premise ERP systems. The technical environment for cloud technology can be configured in as little as 24 hours. This gives organizations more time to focus on the business side of transformation. Change management and business process management require the same time and resources whether cloud or on-premise ERP is being implemented. With cloud based solutions, the provider takes care of hosting.
Bottom Line
The final decision rests with the organization’s management and how they see their future. Do they want to remain contained and in control, or do they want to take advantage of cloud computing power and cloud based solutions? Whichever the case, every successful business requires a healthy and dynamic data ecosystem. Having a reliable and scalable infrastructure in place which can support end-to-end visibility of data flows, fast and secure file transfers, data transformation and storage is integral to success.
The Importance of System Integration in Businesses
In today’s day and age, when companies want to stay ahead of the game they need their systems to work synchronously. Organizations that don't have system integration in place see significant increases in cost and resource consumption.
What is System Integration?
System integration is the method of connecting different sub-systems into one larger system that functions as a single source. In regard to software solutions, system integration is commonly defined as the process of associating various IT systems, services and/or software to enable them to function seamlessly together. System integrations are typically done one of four ways; Horizontal Integration, Vertical Integration, Star Integration and Common Data Integration.
The main reason for businesses to use system integration is the growing need to improve productivity and quality of day-to-day operations. The goal is to get organization and business IT systems to communicate with each other through integration. This accelerates information outflow and reduces operational costs. System integration is not only used to connect an organization’s internal systems, but to also integrate third parties that organizations operates with.
System Integration Methods
Horizontal Integration
In Horizontal Integration, a separate sub-system is used as an interface layer between other sub-systems. This layer is often referred to as an Enterprise Service Bus. This technique allows each sub-system to have a single interface to communicate with. One benefit of using Horizontal Integration is each sub-system can be changed or replaced without having to revise other systems.
Vertical Integration
Vertical Integration is a method where system components are integrated by creating 'depositories', starting with the most basic function to the most complex. Normally, this method is simple and only involves a limited number of systems. However, a hindrance of this integration is it may be more difficult to manage in the long run as any new functionality will require its own 'depository'.
Star Integration
Star Integration is when a systems sub-systems are connected with other sub-systems using point-to-point connections. Above all, this allows for better functionality. A major drawback of this integration is as systems increase, the number of integrations increase as well. This leads to difficulty managing the integrations.
Common Data Integration
Common Data Integration helps systems avoid having the adapter convert to and from each application format. Systems using this technique set a common or application-independent format, or they provide a service that does the transformation to or from one application into to the common application.
Why is it Important?
A system integrator is an independent entity that uses technical and project management activities to integrate commercially available software. Using a variety of programs that do not integrate with each other can make it impossible for employees/admins to work effectively or for the organization to achieve its goals. Having your data in one central location will also reduce costs and storage compared to having multiple systems simultaneously. Businesses often struggle when the task of managing their data is not aligned. If your systems and processes are not working together, it can be very tedious and time-consuming to manage everything individually. Most importantly, by integrating, you reap the benefits of efficiency and effectiveness, whilst reducing the disruption caused by having data from multiple sources. This naturally leads to better analysis of data.
The Disadvantages of Not Using System Integration
- Reduced Employee Productivity — If employees are to be productive they mustn’t be bogged down with unnecessary admin. When staff have to manage multiple tasks such as order processing and invoicing via separate systems, the tasks take longer to complete and the risk of errors is increased.
- Lack of real-time information — In addition to being labor-intensive, transferring data between systems causes data to be out of sync. Overlapping databases prevent business owners from having an accurate view of business performance. Critical decisions are therefore made slowly, if at all.
- Constant upgrades and excess cost — Maintaining multiple systems is expensive and requires substantial IT resources. Once a system is upgraded more changes will need to be made to other systems so that they can still work together.
For a list of services Biz-Tech Services can integrate for you, check out our Acumatica and Sage100 pages. If you can’t see your favorite service, our skilled programmers will find a solution. To speak with one of our experts please call us at +1 818-484-5004 or email us at sales@biz-techservices.com.
