The search for the right one. Part 1: Does my company need an ERP system?
10 Dec

The search for the right one. Part 1: Does my company need an ERP system?

The question is not whether, but when to start the ERP search. If a company is still at the beginning of its history, orders, customer data and inventory lists may still be manageable with Excel and co. However, the data of this kind does not become less. The number of people is also growing. Individual workplaces become departments. The demands on company management are growing. Decisions are becoming bigger and riskier. In addition, the accounting department must always deliver reliable figures. In a nutshell: the work is growing. 

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When data takes on a life of its own

The problem is, even if the individual departments are equipped with good software solutions and function in their own administration, there is still a lack of correspondence among them. This exists, but is not uniform. Often the communication between the systems runs via interfaces. One danger is that data is lost during transmission. More often, however, redundant data is created through double processing. Likewise, data is edited in one system. But this is not transferred to the other system. Suddenly, different data sets that should actually contain the same information deliver different results. For the company, this results in a high expenditure of time and money to check the data for accuracy. This effort grows with the size of the company. The accuracy of the data can never be guaranteed 100%.

Overcoming scepticism

Many companies nevertheless delay the ERP search. The scepticism about the new system and the fear of leaving the system construct with which the company has grown is great. However, it is a question of ERP software is not just about replacement, it is about improvement. With a suitable solution, data and processes can be integrated and workflows accelerated. The IT infrastructure is standardised and reliable data management creates the basis for healthy company growth. This is only a brief insight into the advantages of an ERP system.
Many standard solutions such as SAP Business OneThe "standard systems" represent all functions in a single system. However, they can be adapted and expanded (industry-)specifically. A wide range of Add-ons is already available here. Nevertheless, the ERP solution remains updateable. As you can see, the decision for a system does not have to mean committing to it.

When is the right time to start ERP search

The idea of whether it is not wiser to use an ERP solution right from the start should be considered with caution. Because especially with Start-Up It takes a certain amount of time for companies to crystallise the processes that need to be optimised by an ERP system. A too quick judgement of what the suitable ERP system should have can cost the company a lot of time and money. As a rule, it is better to start at a smaller level - also during implementation - and expand the solution over time. Systems such as SAP Business One can always be expanded with additional user licences and functions.

This (almost) settles the question of whether and when an ERP system makes sense for a company. These days, ERP software is (almost) part of the basic equipment of every company. For start-ups it depends on the right moment and for older companies it is not too late. In both cases, the search for the right solution will not be an easy step.

 

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