When should medium and large businesses apply the ERP System?
The process of digital transformation with ERP in enterprises is still facing many difficulties due to many influencing factors. It is obvious that ERP can help businesses grow compared to their competitors, but when should they apply it? Businesses interested in implementing ERP will find answers to these questions in this article.
1. When should medium and large businesses apply the ERP System?
1.1 When it takes a long time to process because the data is out of sync
It is difficult to process data when different departments use different management software, such as accounting, human resources, sales management. The result is that businesses spend a lot of time searching for and synthesizing data when they need to make reports or data.
In addition, the cost to integrate individual software is not small, the division of resources for management easily causes overlapping work between departments.
1.2 Difficulties in management and evaluation
In order to determine the return on investment of resources, performance management and evaluation play an important role. Due to the lack of a unified and easily accessible document, most businesses are still unable to optimize this stage.
Most businesses evaluate the performance of their workers and employees through paper documents, or by using office software like Excel, Word, .. using a variety of questions and manual screening. This process is labor intensive and does not give a sense of transparency. Even the assessment will become meaningless if it is not based on clearly statistical data.
1.3 When feeling inaccurate data
As well as showing the fluctuations of the business, the reports also show the results achieved compared to the goals. For analysis and implementation, most departments use manual methods. Management and leadership are unable to understand the report as a whole because of this unreliability, opaqueness, and complexity.
Business owners will find it difficult to make decisions about business strategy and management if the report is not of good quality. This is the time to answer the question of when to apply ERP.
1.4 When it is not possible to see the report to make an immediate decision
How long does it take for you to read and analyze a business report? Usually, reading reports, analyzing, synthesizing information from departments and making decisions takes a lot of time when working manually. When problems arise, management cannot make important decisions immediately because each department will have its own system for updating reports.
1.5 Aim for sustainable business development
Why do multinational corporations, large companies use ERP for management, and they develop sustainably over time? That proves that ERP is a useful overall management solution, the operation stages are linked and controlled with each other. In order to pursue further and more successful development goals, enterprises will feel secure when the ERP system supports outstanding development.
2. How to prioritize ERP implementation?
Once the need for ERP implementation has been determined, how should businesses start implementing it?
To begin with, businesses must find a consultant with enough experience in ERP solutions to assist them. As well as understanding business needs, the implementation team needs to understand company policies, transformation processes, accounting, and human resources. A successful ERP project depends on this factor to the tune of 50%.
Next, businesses need to make an estimated budget and commit to persistently implementing the project with partners. Implementing ERP requires time and money to see the effect in the long run. Business failure rates are high when businesses are uncertain about how to apply ERP systems.
Simply put, when the management encounters a lot of problems and affects the business situation, it is time to find an ERP solution. It is important for businesses to experience each module first through a partner like BEMO, so that they can make better decisions.