The concept of an integrated ERP software has been established for decades now. Once a company reaches a certain size, it is simply inconceivable that it would work without an ERP system. At the same time, a young generation of companies and people is growing up who have not come to know software as a large monolith. Used to smartphones, they expect quickly accessible usability concentrated apps. Can modern ERP software meet such expectations?
Is this also available in beautiful?
Is that also available in beautiful? That was the question of one of our customers who saw SAP Business One for the first time. The question was hardly surprising, however, as it was a company specialising in interface design. Nevertheless, the customer had decided in favour of SAP's mid-range solution. That was over 10 years ago.
At a lecture I recently gave, a participant in the auditorium pointed out to me (and almost rightly so) that software such as monday.com would exist. Unlike the "ERP heavyweights", it is slim, has an appealing interface and is virtually self-explanatory.
Admittedly, it is not easy for me to respond to such accusations. However, this is not the case because I feel that I am on the losing end. On such occasions, I am simply perplexed by the misunderstanding.
Reach your destination quickly and precisely
Modern software is often developed in co-operation with its users. In line with the lean concept, the user is confronted with the application at a very early stage. They should feel comfortable and find their way around without the need for extensive explanations. In terms of functionality, these solutions usually focus on one section or one area of the company. This is how sophisticated, sometimes highly specialised tools are created. An important, if not the most important part is the user interface (UI). After all, it is the specialised users who should be picked up according to their specialisation in order to decide in favour of the software.
A lot of good innovative software comes onto the market in this way. Of course, this is then perfectly tailored to the respective target audience.
ERP systems want everything
"...Often a user group has to take a back seat, even suffer ...if it serves the whole..."
The essential two ideas behind one ERP system is the standardization and integration of business processes. Based on the idea that it tested and optimized processes These processes should be applicable in the ERP software of many different companies. best practices is the magic word. The processes involved have been nicely outlined by the German Society for Quality (DGQ): "The totality of activities that are mutually dependent or influence each other and convert inputs into results using resources."
The aim cannot be to depict specialities in a highly specialised way. The truth is that a user group often has to take a back seat, even suffer ... if it serves the whole.
"...An ERP system may no longer be technically up to date, but functionally quite suitable..."
It depends on maturity
The pool of exemplary processes does not come from just anywhere and not ad hoc. In order to become best practice, they must first be applied over an appropriately long period of time with an appropriately high degree of variance. To cut a long story short: it takes time and the necessary experience. An ERP system may no longer be technically up to date, but still be functionally suitable. And conversely, it will fail if it lacks functional depth. Many new trends can be followed.
The software is only half the battle
".. The ERP consultant must not only be a specialist in "his" ERP system. He must understand the business processes of his customer...."
Modern software often comes with the promise that its functions are virtually self-explanatory. If it doesn't, modern media are available. They then provide the explanation, for example.
Introducing ERP software in a company is not possible without Advisor and a more or less complex project. Why aren't there YouTube videos and online help to guide you?
If you bear in mind that such ERP software often has tens of thousands of tables "under the bonnet" and someone needs to know what is or should be stored in which of these tables, you might get an idea of what the answer to this question is.
Not only that. The ERP consultant must not only be a specialist in "his" ERP system. He must also understand his customer's business processes. These ingredients then become the total work of art that is ERP.
The software is only part of the cost
If we go to the website of various software providers today, we will find a prominent link to the pricing model. Here we usually find two to four "plans". These plans usually provide the monthly costs per user. You can quickly calculate how much it will cost to use the software package.
you ask them Cost of an ERP software serious providers are usually too buttoned up. It's not just the licence models that are complicated. The license costs are often the smaller part. The implementation project generates some costs for consultant days. There is also your own expenditure for the employees in the ERP project. This should not be underestimated.
There are interfaces
"...Without data integration, the essential basis of digitalisation is inaccessible..."
As already mentioned, there is a lot of good specialised software. These often perfectly fulfil the special requirements of individual company departments. It would therefore make sense to simply combine these specialised packages. And yes, the interface technology is becoming increasingly intelligent. However, it is not just about the simple transfer of data. The processes must be made consistent. Attempting to realise this not only involves a great deal of effort. Once realised, the fragile structure is usually only understood by a few of the developers involved. The "easy to use" software suddenly becomes an error-prone risk. However, without data exchange, companies not only lose the advantages of automation. Without data integration, the essential basis is the digitalization inaccessible.
Digitalisation demands and promotes ERP systems
Exactly on topic data integration ERP manufacturers invest a lot of effort and money. This is particularly relevant for medium-sized companies. The basis of digitalisation is the networking of all areas. In the company, but also for every other useful data sources. Data is the gold of the 21st century. A well-integrated ERP system is the basis for becoming a goldmine as a data hub and networking platform.
The backbone for digital transformation
Some hype topics like AI (artificial intelligence) are still in their infancy. Other developments have already arrived. These include the need to integrate customers, customer partners and suppliers into internal processes.
The constant and wide-ranging analysis of data should provide companies with new indicators. This enables them to recognise developments, opportunities and risks at an early stage and exploit them.
A fully integrated ERP system is the backbone of this ever larger organism. It has to manage data from all areas of the company for all these tasks. In addition, it processes this internal data with external data from outside. In doing so, it automates as much as possible. In this way, the available resources can be optimised for value creation.
more on the subject:
Standard ERP: Advantages and disadvantages
The standard usability of ERP systems in 9 points
ERP as standard - what does that mean?
Integrated ERP approach or special software for financial management?
Standard still trendy
