According to Statista, 64% of ERP implementation projects have got cost overruns. The ERP software market was worthed at 82.3 billion U.S. dollars worldwide in 2016.
Enterprise resource planning is an essential part of the company’s organization taking into account the relevant usage of the resources and investments for the specific business procedure. ERP helps to achieve greater resource distribution and general growth. It brings automation features and greater business standards.
Benefits of ERP software
- Better productivity.
An ERP system decreases or eliminates manual work. It requires to add some changes to the existing processes but there is a risk of the mistakes because employees need some to adapt to the new workflow.
- Greater reporting.
ERP software solutions can be a centralized system to gather and save all data throughout various departments. When you save all company’s information in one place, you will get better reporting.
- Lower cost.
When you remove unwanted actions with web ERP, you have the ability to cut the costs. It involves the expenses of operation, especially when you plan costs ahead.
- A chance to scale.
Web ERP or ERP application allows adding new functionalities, adapting itself and supplement new users. If your company grows to the next level, the ERP software will be your helper in promoting growth.
- Competitive edge.
When you improve your main processes with ERP project, you can stand out among competitors. Moreover, it helps to raise the return on your investment.
- Greater customer relationship.
The successful ERP project comparing with the efforts of the CRM developer may bring better customer satisfaction and the ability to deliver on time answers for the customers.
- Secured data.
ERP programmer together with CRM developer may work on data security. They may create one system or one database for both ERP and CRM solutions and ensure that valuable and vulnerable information is safe.
- Improved inventory synchronization.
ERP brings track updates without a need to onboard staff to perform these tasks.
- Automated solutions.
It can be automatic notifications for the customers to inform them about the process and help them to resolve their issues and struggle.
The Drawbacks of Manual Operations
- Mistakes in writing data, especially valuable information like address or contacts.
- Wrong inventory levels may lead to overselling.
- Product information may be incorrect, incomplete or missing.
- Inability to bring customer satisfaction.
Gartner assesses that up to 75% of all ERP projects fail to reach their outcomes. Use these tips to overcome the challenges and achieve the needed results:
- Identify the need for change by creating a clear vision of how the company will take advantage of this initiative.
- Discuss with your team why this change is important and possible results if you don’t change anything.
- Plan the budget and required resources to maintain the project. Also, ensure that everyone engaged knows the goals and how to achieve them.
- Motivate each team member to actively participate and understand changes as a high priority.
- Figure out who the project sponsor is and identify other organizational leaders.
- Develop leadership alignment plans for the leaders with required actions.
- Provide cross-functional sessions to share your vision and your thoughts.
- Identify key risks and emphasize integration points between project flows to create discussion early on. Internal meetings have to involve presentations from every flow how team members understand their project role.
Lack of instructions and a clear vision of roles and responsibilities may bring confusion. Without a structure, the employees may duplicate actions or leave the main tasks unfulfilled. Ensure visibility as well in order to deliver the right information to the right people at the right time.
Keep in mind that implementing ERP is a long way to go. Your customers have to be confident and aware while working with the specific ERP solution. So, deliver to your end users online support with some toolkit and ability to ask questions.
The average profile of an ERP developer
Hire ERP Programmer for Developing Custom ERP Software
What custom ERP system can bring to the table? First of all, it’s ability to align software to your business needs. You may cut unwanted features to simplify the product or add some new functionality to make the solution more relevant for your company.
Keep in mind that you may start small and supplement the needed layers. As soon as you test your ideas, you may know better what you want and what you don’t need and how it works in real life. Feel free to hire an expert who has a deep experience and expertise in creating and implementing such systems.
For example, Tesla has created its own ERP solution after a deep analysis of its pros and cons. SAP implementation would take 1 year to provide integration and millions of dollars but their own ERP integration took only 4 months at reasonable rates. So, sometimes developing unique ERP software, even taking into account a salary of the developer, will be a cheaper solution for the company. The main reason is that you are independent from the third party vendor.
Related article: How to Find the Best Language for ERP Development
If considering the money issue, the average salary for an ERP programmer is $89,583 in the USA. The average rate for this professional is $23,276 per year in Ukraine. The salaries depend on the years of experience and skills of the developer. Moreover, long-term cooperation will cost less than short-term projects.
ERP Software Solutions
If you want to buy ready ERP modules or compare features of ready ERP software, explore our list of the most popular solutions.
Founded by IBM engineers 46 years ago, nowadays SAP is the third biggest software company in the world. It includes 30,000 databases in order to deal with very difficult business situations.
Oracle exists for many years as a database for SAP ERP applications. Nowadays, it offers Oracle Financials, Oracle ERP product. It helps to work smarter and handle worldwide financial operations and refine shared services. Oracle ERP helps to boost decision making because of delivered business intelligence. Moreover, it allows decreasing the risks and meeting global accounting standards.
Infor Global Solutions has grown rapidly and has a global presence in 194 countries. It has technical solutions in 14 various domains. Its features: fast installation, made for each industry with specific analytics; a comfortable user interface; rules and regulations for 49 countries; cloud ERP software; check individual components and share needed data throughout the value chain.
It helps to make data-driven solutions and reach better profitability. Moreover, it allows benefiting from changing the economic environment with agility and flexibility features. It can be used as cloud ERP software and it is available on-premise, hosted as well.
Epicor pays attention to the ability to boost operations and refine customer experience.
It has a presence in 68 countries with more than 4,500 installations. The new release, Lawson M3 7.1 involves an ability to meet open standards and industry-specific functionality for better flexibility and adaptability. The apps are easy to integrate and demand less support than other ERP solutions.
Lawson developed two new analytics apps that pay attention to the main business areas: warehousing/logistics, sales, finance, and procurement. They make also manufacturing-specific analysis for production and order costing processes.
QAD Enterprise Application is aimed to improve ROI. It has a platform built around agility to adapt to growing business environments. This ERP application allows responding fast to the changes and refines effectiveness. A device-independent platform combined with cloud functionality allows making a difference. Moreover, users may create new apps by themselves with an ability to add specific functionality.
It is used in more than 50 countries with helpful multinational functionality. Sage Business Cloud helps to improve supply chain management with a wide range of useful features.
This system is web-native, so you receive the same system over the web or locally. It has an open design and fits Microsoft SQL and Oracle, Linux, Windows, etc.
IFS brings agile ERP solutions with SOA architecture. The main benefit of this solution is easy integration and helps to handle manufacturing, supply chain, and project management, service & asset management.
It has a user base involving 2,000 installations and clients in 50 countries.
One main reason for its popularity is its deep focus on specific verticals.
#9 Consona Corp
It develops and provides solutions for the manufacturers. Consona Corp offers tools for business intelligence, CRM, resource planning, etc. The key advantage is an intuitive interface.
This solution fits small and midsized company. Besides, they have a special product called MadetoManage in order to meet customers’ needs for machine production and design, metal fabrication.
This business app helps companies to operate through various countries and industries. It brings a deep view and picture of the customer.
Microsoft Dynamics NAV is a flexible solution for service-related, and distribution companies. It delivers accounting and financial features for 90 000 customers and 1,3 million global users. They can use business or enterprise editions with contract management, customer self-service and engagement tools. Moreover, users can get unified commerce tools, performance, and productivity metrics. NAV employs new features to manage work in process as well.
Microsoft has 2 more products for large organizations Microsoft Dynamics AX and Microsoft Dynamics GP, and SL for mid-sized and small companies.
How to Choose ERP software
Choosing an ERP solution is a challenging and time-consuming task. It requires strict requirements and close attention to the selection of the right vendor. A structured approach will simplify the task and helps to manage the efforts of various departments and stakeholders.
Moreover, prepare a simple demonstration of the potential ERP application or hire ERP consultant in order to make a decision. The main purpose is finding the software that will be a good match for your specific situation, challenges, with the ability to fulfill your gaps.
You need to work in advance to plan desired outcomes and key criteria. All stakeholders need to participate in the process of decision making. Then, check carefully how the solution fits your needs and how it matches the technologies you already use.
After that, calculate the entire cost that involves additional efforts to implement it, upgrades to hardware, network costs, expenses of software maintenance and required customization.
ERP software helps to simplify the company’s management and allows to do more with less. Increased productivity, ability to cut the costs, better reporting are the main benefits. There are many well known ERP software solutions out there, so feel free to use our list. But if you need a customized solution for specific needs, hire ERP developer and consultant to reach your business needs.
Even impossible purposes may be achieved with the new ERP solutions without disruptions to the whole process. But you need to assess all pros and cons before making decisions to ensure that specific ERP fits your existing technologies.