What should you choose between ERP and specialised applications?
Is your company growing year on year and you're accumulating software that doesn't talk to each other? Perhaps you have a sudden and combined need in customer relations, project management, human resources and other areas? Then the question arises of pooling your software solutions to boost productivity. Read all our advice on using ERP.
It's a critical node in the evolution of your company, which will either make you more efficient or, on the contrary, slow down your development. Just 5 years ago, there was no question about it: the ideal solution was ERP. The choice is now less obvious with the proliferation of SaaS (Software as a Service) solutions that cover all your needs and communicate with each other natively... Almost like an ERP application, so to speak.
Are we still talking about ERP in 2016?
Yes... But things have changed a lot. To understand this, we need to go back to the basics of ERP. An ERP is a set of specialised modules (HR, finance, sales management, etc.). They operate on a single database that guarantees the sharing, updating and traceability of data across all the modules in the system. The ERP application covers the majority of a company's business needs, indeed it constitutes its entire information system. The fundamental advantage of ERP is that it can track all operations, from quotations to financial reporting.
The ERPs we are talking about are published by Oracle, SAP and other historic players. These are now being called into question because of their high cost (several hundred thousand euros excluding maintenance costs), lack of collaboration and failure to take account of mobility requirements.
In 2016, ERP is taking on a lighter form. In fact, it is sometimes referred to as enterprise management software. Even if the fundamentals remain the same, new solutions such as IOvision and Fitnet Manager benefit from the advantages of SaaS: low, monthly licences, low installation costs, the ability to share knowledge beyond business processes, and highly secure access from any device, at any time.
Why specialist software?
Online applications or software in SaaS mode have now reached a level of maturity that enables them to be used by SMEs and large groups. These solutions, accessible via a web browser, are open. Nearly all of them offer APIs (Application Programming Interfaces) that enable them to communicate with each other. So you can choose your CRM, your quotation and invoicing software, your project management software, and have them all communicate with each other. You'll make estimates based on the customers in your CRM, then you'll execute the projects as soon as they've been invoiced.
That's the principle.
In reality, it's still not easy to find a suite of online applications that suits your needs and, what's more, integrates natively and perfectly with each other. However, the future of specialised SaaS is moving in this direction, and it is often possible to negotiate the development of a gateway with the publishers or to do it in-house.
The best of both worlds
Taken independently, specialist software often has simplicity of use and agility on its side. Many SaaS solutions 'plug in' to cross-functional applications such as productivity suites (or office suites). The tried and tested example is Salesforce, Zoho CRM, Sellsy and other online CRMs connect to Google Apps to integrate email conversations and appointments with account management in the CRM. Here are just some of the benefits of this choice:
- Business expertise : CRMs, like invoicing, quotation, accounting and document management software, etc., are designed and improved by specialist publishers who gather feedback from their customers every day. They also face stiff competition that is constantly raising the bar. It is the customers who benefit.
- Openness: to stand up to the competition, SaaS providers need to prove that they can adapt to changes in their customers' needs. So almost all of them have APIs that can be connected to any other SaaS. Some online applications offer native connectors to other named applications.
- Collaboration and mobility: specialist SaaS applications are increasingly integrating chat, document sharing and notifications. Publishers are also striving to offer an iPhone or Android application, or at the very least a dynamic/responsive interface (access via your web browser to an interface adapted to your mobile).
- Getting started: getting to grips with a specialist application is often less impressive than an ERP. The scope of the service is very limited and the uses are streamlined.
For the reasons set out below, ERP has undeniable advantages that will ensure its future remains as bright as ever:
- 1 vendor, 1 logic: by opting for an all-in-one solution, you only need to integrate a single logic to automate all your processes.
- ERP solutions are adapted to SMEs and even very small businesses: Microsft Dynamics NAV and Sage Gamme 30-100, for example, are designed for small and medium-sized companies.
- ERP systems are becoming more specialised : this is a major trend. To face up to international competition, many ERPs specialise in a particular theme or industry. So there's plenty of choice these days:
- IOvision, the ERP developed by IOcean, offers a comprehensive, modular ERP tailored to service companies. As the publisher is also an IT services company, its customers benefit from all the expertise it has acquired over the course of its projects.
- Fitnet Manager is another ERP choice aimed at companies working in project mode with their customers. This business management software even includes a training module for your trainers.
- Data integrity: As mentioned above, there are still not enough 'native' connections between SaaS applications. The ERP application therefore has the advantage of being able to feed the same data into the entire information system, so that it can be traced through the business processes. So there will never be any import/export, or worse, re-keying of data between two business areas.
- Functional coverage: being in a unified environment in terms of data model opens up greater possibilities in terms of uses. ERP systems therefore often offer more advanced functionalities. They are also designed for SMEs and large groups, so they meet advanced needs. Specialised SaaS solutions, on the other hand, are aimed at the general public, so you need to make functional choices.
Generally speaking, companies wishing to place particular emphasis on the performance of one or more teams will opt for a range of specialist SaaS, often revolving around the office suite: Google Apps and Office 365 have achieved such a level of popularity and openness that online software publishers spontaneously include the option of retrieving data from these central services. ERP, on the other hand, is ideal for companies that need to industrialise their business processes. This option will enable them to achieve massive economies of scale. ERP also provides excellent information tracking and perfect data integrity. Finally, you are more likely to choose to host the solution on your own premises or in the Cloud than with pure SaaS players, who more often than not operate multi-tenant systems for all their users.
Article translated from French