Home Digital marketing 7 ways to streamline your ERP Systems

7 ways to streamline your ERP Systems

ERP Systems: the fundamentals What are the most important resources of any organization or enterprise? Multiple responses hold true for this question, including money, human resources, infrastructure etc. If you refine the question, what is the most indispensable tool of an organization in contemporary times? The clear answer is data. A manager can manage his/her employees, but someone has also got to manage the huge data flow in an enterprise, which for a single human being, is an impossible task. Enter ERP systems. ERP or Enterprise Resource Planning systems are like an organizational wizard for modern businesses, big or small. In the form of software, ERP systems are broadly used to perform dual functions- a) related to day-to-day activities like procurement, accounting, management, supply chain operations, etc. and b) related to performance management like planning, budgeting, reporting results, etc. How do ERP systems work? You may wonder how data management is related to the business-related processes mentioned earlier. Well, the mechanics are such that at the core of ERP systems is a basic construct, or data structure, having a shared database. These basic constructs are uniformly interconnected with various business-related processes. In this way, data from all departments is centrally organized as well as distributed. Simply put, ERP systems tie a gamut of processes, technologies, and people together to dispense and receive clear and uniform information. ERP implementation: What and how ERP implementation can be quite a strenuous process. Yes, as magical as its effects sound, its installation requires a meticulous approach. First, let’s understand what all ERP implementation entails. The list goes as follows: - ✔ Software installation ✔ Data transfer- transactional and financial ✔ Outlining or charting down processes ✔ User orientation and training Regardless of how complex the process is, ERP implementation is not unattainable. With thorough planning and informed foresight, you can smoothly install an ERP system in your organization. Ultimately, it all boils down to effective planning. To make it all easy for you, at least in theory, next up are 7 steps or solutions that can lead you towards a successful and foolproof ERP implementation. These highly recommended steps will give you insights into the nitty-gritty of ERP implementation, covering a broad spectrum of factors like costs, team building, training, etc. 7 Solutions for effective ERP Implementation - 1.) Make a Team Good teamwork translates into higher chances of success, and a task like ERP implementation will certainly require assembling a great team. It is not a one-man job. Your team will work best if your work delegation is on point. Functionalities to be implemented vary from one company to another, and so do stakeholders. Naturally then, you need to customize your team requirements as per your enterprise. Despite such variations, here are ideas about some key portfolios that can be helpful for you in ERP implementation: - ✔ Management team including senior management and project manager ✔ Data handling team including application analyst, application developer, and all those looking after data migration. ✔ Engineering staff to look after system performance and related issues ✔ Accountants ✔ Other ground-level workers as per requirement 2.) Plan before Proceeding As ERP implementation is a tedious task requiring detailed attention at every step, only planning can save you from running into chaos. You must have a plan for different plans. Every step on the way needs to be brainstormed, drafted, and scheduled. Some key areas where you cannot do away with planning are costing, data migration, training, and going live to name a few. Careful planning even includes situations of damage control. There are no guarantees to prevent failures and disruptions during transitions of a bulky nature, like ERP implementation. Your only armor is, leaving room for free-flowing communication, having patience, and taking your team along. 3.) Calculate costs and draft a budget Budget is your boss. Treat it suitably. The ideal estimation of ERP implementation's starting cost is 1% of your enterprise's annual gross revenue. After this, you add all other costs like data storage and backup, network upgrades, training, consultancy, etc. 4.) Start the data transfer Once you have established a foundation, you move on to building the actual structure. Here, you must head towards data migration in which your application analyst plays the key role. Data migration entails a lot of work on old data and new data. At this point, you have to be extra careful with all methods. 5.) Train the Users Even the best systems fail if not used optimally. Here comes the importance of user training. There are many training methods, but you must go for the ones that don't just

ERP Systems: the fundamentals

What are the most important resources of any organization or enterprise? Multiple responses hold true for this question, including money, human resources, infrastructure etc.

If you refine the question, what is the most indispensable tool of an organization in contemporary times? The clear answer is data. A manager can manage his/her employees, but someone has also got to manage the huge data flow in an enterprise, which for a single human being, is an impossible task. Enter ERP systems.

ERP or Enterprise Resource Planning systems are like an organizational wizard for modern businesses, big or small. In the form of software, ERP systems are broadly used to perform dual functions- a) related to day-to-day activities like procurement, accounting, management, supply chain operations, etc. and b) related to performance management like planning, budgeting, reporting results, etc.

How do ERP systems work?

You may wonder how data management is related to the business-related processes mentioned earlier. Well, the mechanics are such that at the core of ERP systems is a basic construct, or data structure, having a shared database. These basic constructs are uniformly interconnected with various business-related processes. In this way, data from all departments is centrally organized as well as distributed. Simply put, ERP systems tie a gamut of processes, technologies, and people together to dispense and receive clear and uniform information.

ERP implementation: What and how

ERP implementation can be quite a strenuous process. Yes, as magical as its effects sound, its installation requires a meticulous approach. First, let’s understand what all ERP implementation entails. The list goes as follows: –

  • Software installation
  • Data transfer- transactional and financial
  • Outlining or charting down processes
  • User orientation and training

Regardless of how complex the process is, ERP implementation is not unattainable. With thorough planning and informed foresight, you can smoothly install an ERP distribution management system in your organization. Ultimately, it all boils down to effective planning..

To make it all easy for you, at least in theory, next up are 7 steps or solutions that can lead you towards a successful and foolproof ERP implementation. These highly recommended steps will give you insights into the nitty-gritty of ERP implementation, covering a broad spectrum of factors like costs, team building, training, etc. 

7 Solutions for effective ERP Implementation –

1.) Make a Team

Good teamwork translates into higher chances of success, and a task like ERP implementation will certainly require assembling a great team. It is not a one-man job. Your team will work best if your work delegation is on point.  Functionalities to be implemented vary from one company to another, and so do stakeholders. Naturally then, you need to customize your team requirements as per your enterprise. Despite such variations, here are ideas about some key portfolios that can be helpful for you in ERP implementation: –

  • Management team including senior management and project manager
  • Data handling team including application analyst, application developer, and all those looking after data migration.
  • Engineering staff to look after system performance and related issues
  • Accountants
  • Other ground-level workers as per requirement

2.) Plan before Proceeding

As ERP implementation is a tedious task requiring detailed attention at every step, only planning can save you from running into chaos. You must have a plan for different plans. Every step on the way needs to be brainstormed, drafted, and scheduled. Some key areas where you cannot do away with planning are costing, data migration, training, and going live to name a few. Careful planning even includes situations of damage control. There are no guarantees to prevent failures and disruptions during transitions of a bulky nature, like ERP implementation. Your only armor is, leaving room for free-flowing communication, having patience, and taking your team along.

3.) Calculate costs and draft a budget

Budget is your boss. Treat it suitably. The ideal estimation of ERP implementation’s starting cost is 1% of your enterprise’s annual gross revenue. After this, you add all other costs like data storage and backup, network upgrades, training, consultancy, etc.

4.) Start the data transfer

Once you have established a foundation, you move on to building the actual structure. Here, you must head towards data migration in which your application analyst plays the key role. Data migration entails a lot of work on old data and new data. At this point, you have to be extra careful with all methods.

5.) Train the Users

Even the best systems fail if not used optimally. Here comes the importance of user training. There are many training methods, but you must go for the ones that don’t just “teach” but instead engage the trainees. Sound engagement in the training process is proven to have better results. Also, never compromise on communication and feedback. Use positive reinforcements for quick learners but don’t limit your focus on them.

6.) Plan the D-day- the day you go live

Planning the day when you go-live is the ultimate test and naturally the most crucial stage of your ERP implementation. Areas you must check and recheck include: –

  • Testing your system
  • Fixing parameters for project evaluation
  • Putting in place a system disruption or downtime management mechanism
  • Checking networks

7.) Review, Evaluate, and Improve your project

As mentioned before, nothing can vouch safe the absolute success of your project. You can only ensure the best of effort, but even then, if loopholes remain, you must devote time to an honest evaluation. You can gauge your project’s success by going over factors like: –

  • Reduction in errors related to data processing
  • Return on investment
  • Enhanced productivity

Benefits of ERP Systems

ERP Systems have immense business value. Modern-day enterprises significantly benefit from systems that efficiently integrate and streamline data. Through systems such as ERP, not only the usability but also the integrity of data is maintained. There is a minimum to no chance of data discrepancies and duplication. By creating an authentic data repository of sorts, ERP systems bring credibility to an organization’s information exchanges. In other words, employees can be sure about the fact that the data they see is accurate and complete. Some more benefits of ERP Systems include:

  • Cost-effectiveness
  • Better collaboration between departments
  • Consistency in infrastructure and operations
  • Risk reduction
  • Overall efficiency

Summary: –

ERP systems are a boon for modern-day enterprises for multiple reasons. From data organization to integration of various stakeholders, ERP systems enhance business efficiency. Especially today, you cannot ignore ERP’s value when data is a glaringly vital resource and tool for enterprises. You cannot afford to be uncoordinated, laid back, and erroneous when it comes to information exchange. For this reason, you must consider ERP implementation in your organization, which can be easily achieved if the right process is followed.

Gear up, make a plan and head towards optimum business growth with ERP systems. Connect with Brainvire experts to know more about ERP Implementation and planning.

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