How does your company operate?
Many companies run themselves in a rather inefficient manner when it comes to technology. In companies like this, every department is an island unto itself. Each has its own separate applications and technology, including both databases and front-end applications. For example, the sales department will use a totally different application and database than the accounting and billing departments while the manufacturing and business intelligence groups’ software packages will speak two completely different languages. This is true despite the fact that many of these departments’ systems should ideally be interrelated and rely on each other. This is an inefficient way to run things, costing time, effort and money. More efficient companies understand that the way to do things right is to unify operations with ERP.
What is ERP?
Enterprise Resource Planning is a concept that involves the unification of all business technology into a streamlined, efficient model. An ERP solution will promote effective, efficient use of technology and data by implementing a similar front end and a common back end across all organizations and departments of a business. Users will benefit from a common, familiar set of applications on the desktop while accessing shared databases for easier access and sharing. For example, the fulfillment department will share their order information with the warehouse staff. The warehouse will then pass the same data on to the procurement team. In a case like this, inventory will be efficiently moved and replenished far easier than before. This is but one example of how a robust ERP product and advanced ERP consulting, like JD Edwards consulting from Syntax, can implement a superior level of efficiency.
What are the key areas covered by an ERP implementation?
An ERP solution is made up of “modules” that cover all key departments. As mentioned, these modules’ data is commonly accessed by all departments and unified to streamline sharing. While modules vary, the basics are accounting, human resources, sales support, manufacturing, project management, supply chain and data warehousing. Each of these areas is important and each has their own set of particular demands and disparate ways that they will integrate with all or some of the other departments. Seeing how complex this list of modules is, it’s easy to see how ERP will help a large enterprise. While this is true, what about small businesses? Can companies that aren’t enterprise-level also benefit from Enterprise Resource Planning?
ERP and Small Businesses
A common misconception about ERP is that it’s strictly for large businesses. The belief is that it doesn’t scale and that it’s just not small enough or affordable enough for companies that aren’t absolutely huge. The truth is an increasing number of firms that sell ERP products and offer ERP consulting services are targeting smaller and mid-sized companies. These firms’ ERP solutions are scaled to meet the demands of these smaller businesses. These ERP solutions firms offer a range of ERP products that are geared to meet both the interdepartmental needs and the budgetary demands of companies that might be global in their long-range goals but local in their current needs. Offerings like SAP or JD Edwards Enterprise One, for example, can be implemented quickly and affordably, with modules customized to suit exactly what is needed.
ERP Alternatives?
Despite the emergence of smaller-scale ERP implementations, some companies are still not ready to make the jump to a complete on-site ERP solution. This is especially true for highly-specialized businesses like food service or specialized manufacturing industries that may not have the need for every feature of a more robust ERP product. It’s also the case for companies who may not want to spend the funds required for all the hardware, software, infrastructure and support for an on-site ERP solution. For these companies, software as a service (SAAS) ERP products may be the way to go.
In the SAAS model, ERP solutions providers leverage cloud-based solutions to provide ERP as an on-demand service based in the cloud. Like with all Software as a Service offerings, SAAS ERP allows the client to forgo the costly expenses associated with total ERP infrastructure ownership. Instead, they can use ERP services as needed in an online subscription model. This provides services at a fraction of the cost of a traditional ERP solution as customers pay in a subscription model on an as-needed basis, finally making ERP widely available to the masses.