Why choose ERP?
There's a lot of talk about ERP (Enterprise Resource Planning). But what exactly is ERP? When should you consider it for your business? And how do you identify what you need?
What is ERP software used for?
ERP is management software that centralises all the workflows of a business: accounting, sales, human resources, etc.
How a young company works
At the start-up stage, the choice of ERP software is rare. Entrepreneurs generally start by organising their database in Excel. They may move on to a business tool when the need arises: CRM (Customer Relationship Management) software for sales management, or accounting software for bookkeeping. So far, there' s no ERP on the horizon, and a priori there's no need for it. So what would be the trigger? At what point can or should a company consider ERP software?
Growing needs
The need for an ERP tool arises when :
- internal dysfunctions accumulate,
- processes become redundant or laborious.
Let's say one of your sales people hears that a customer has moved. He makes a note of it himself. But if he doesn't think about it and doesn' t pass the information on to the accounts department, invoices and letters will continue to be sent to the old address. To encourage internal exchanges, departmental meetings can aim to cover all the points that need to be raised. But the risk is that some of them will be omitted. With their heads in the sand, it's easy, not to say common, to forget what information needs to be passed on to colleagues.
The need for a common tool
It's not so much the size of your company as the volume of data processed that will bring you to the point where you need to install ERP software. Insofar as the information entered by someone in the company becomes accessible to all your departments, you instantly eliminate the problems of transmitting information. More autonomous, everyone has access to the data that interests them, and can dig deeper if necessary. From a structural point of view, ERP becomes the backbone of the organisation. Common to all employees, it is at the heart of everyone's tasks and progress. Collaborative, it introduces greater transparency. And for management and the various department heads, it makes it easier to manage the business. The figures, available in one place, can be cross-checked to give a concrete overview of the company's situation, from a financial, competitive or human point of view.
How do you choose your ERP software?
Depending on your sector/business
On the whole, companies have similar processes: canvassing, sales, invoicing, internal management, etc. However, the way each one operates will differ to a greater or lesser extent. A consultancy agency, for example, will not operate in the same way as a construction company: canvassing scenarios, submission of quotes, calls for projects, invoicing by assignment or by the hour, etc. This is why some ERP software is dedicated to one or more specific sectors. IOvision, for example, is aimed more at service companies such as agencies and firms, while Archipelia is positioned more towards retail, trade and production activities.
Specific features
This ERP software, a kind of sector-specific toolkit, is turnkey. If you work in a particular sector , this is the tool for you. But... it may be that while you operate in a given field, you have your own business model or way of operating that makes you different from your peers. In that case, off-the-shelf software may not be for you. You then have two alternatives:
- Opt for an ERP that meets your specific needs. If, for example, you have identified that human resources management is a key factor in the success of your business model. Then it would be wise to opt for a tool that is particularly advanced in this area, such as Zéphir for example.
- Opt for modularity. Your sales staff may be used to working with one tool, or your accounts may have been managed on another for some time. By opting for a transversal ERP, you will have to ask your teams to change their habits and their working environment. And some of them may find the new tool less effective. Fortunately, more and more ERPs are equipped with APIs so that they can interface with third-party solutions. This tool compatibility means that you can choose or keep the solution that each of your departments wants, while unifying the structure's information system.
If a company can do without ERP, there will always come a time when it will be necessary. ERP software streamlines internal workflows and helps to improve productivity, as long as it corresponds to the company's business or specific needs.
Article translated from French