Planning, steering, monitoring: in the course of digitalisation, ERP systems are becoming ever more important in mid sized companies. ERP solutions are the heart of digital transformation within a business and affect every business process. At the same time, ERP transformation projects present companies with numerous challenges.
ERP, what does that actually mean? Behind the acronym stands enterprise resource planning. ERP refers to software used in companies to digitalise all relevant business processes from A to Z and so to manage and steer the multitude of business transactions, whether in logistics, in sales or in purchasing. The right preselection, a professional system check and correct configuration are decisive for the success and the profitability of ERP systems.
Not all ERP systems are alike
What they can do and what they cost: there are large differences between ERP systems. ERP systems consist of various modules which, when configured correctly, are tailored to all the important company and industry specific requirements. As with all tools, the same applies here: the market is large and the right choice is of central importance. What good is an ERP system if only 20 percent of it is used in the company? The system should cover the entire spectrum the business needs, but should not be more powerful than necessary, in order to avoid unnecessarily high costs. The chosen package should also be used in full and fit seamlessly into the internal processes and structures. That is why THE MAK'ED TEAM begins the ERP system check by analysing the starting situation and the general conditions thoroughly. To create a holistic infrastructure and a homogeneous IT landscape in which the ERP system works smoothly and efficiently with all its neighbouring systems, it is important to sharpen the overview between systems and processes. Which system interacts with which process? How can the system best be brought into which process? Which system is necessary? Which system is sufficient? And how does the company go about procuring the systems?
Precise definition and a thorough approach are essential here in order to implement the requirements catalogue in a tailored, industry specific way.
Once implemented, ERP systems bring companies many advantages:
- Process optimisation: an ERP system leads to process optimisation. Different functions are integrated, many workflows are automated and therefore become more efficient. That raises productivity and at the same time reduces errors.
- Resource management: with an ERP system in place, the entrepreneur gains the greatest possible transparency in the relevant business processes and transactions, which makes control and steering easier. The company's resources, such as stock levels or staff, are always visible and up to date, which considerably improves and simplifies administration and planning. Staff scheduling can be optimised and materials management made more efficient. In the end that saves noticeable costs and helps to see bottlenecks early and counteract them in a targeted way.
- Transparency: an ERP system supplies decision makers in the company with real time data from every department. This transparency provides an up to date and comprehensive overview and makes it easier to plan, steer and monitor business processes with focus.
- Customer satisfaction: with an ERP system, orders can be processed more efficiently. Supply chain management, customer service and delivery reliability improve. Delivery times are shortened and customers are served faster and better. That raises customer satisfaction and deepens customer loyalty.
- Compliance: through improved control options, active integration into the internal control system as part of risk management, and the comprehensive transparency an ERP system provides, compliance in the company is improved overall and risks are minimised.
- Scalability: companies change, grow or expand. ERP systems are scalable and can be adapted flexibly to those changes. They can therefore meet new requirements and support companies as they grow.
There are numerous challenges in working with ERP systems. They range from integrating the ERP system into existing processes and the total cost of ownership through to data conversion and migration. Long implementation phases can cost the company a great deal of time and money and can also have a negative effect on business development. The success of an ERP transformation project stands or falls with the right selection and efficient implementation. THE MAK'ED TEAM accompanies mid sized companies through their ERP transformation independently, professionally and with focus. There is no question that ERP systems are powerful, whenever they are chosen, configured and implemented correctly and meet the company's requirements catalogue in full. Not only today, but tomorrow as well.
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