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What Is the Best ERP For Small Businesses?

What is ERP for small business?

ERP simply refers to computer-based software that helps you conduct your business more efficiently. It integrates all the key processes of a business in one place; hence making your job much easier. These processes include

  • Human resource
  • Accounting
  • Finance
  • Marketing
  • Human resources management
  • Production
  • Distribution
  • Logistics and store management among many others.

ERP also includes other types like enterprise resource planning (ERP), enterprise resource planning software (ERP software), and third-party software.

Small business owners are always looking out for cost-effective ways of conducting their businesses. They want to cut operating costs to increase profits. In such a scenario, they often try to use any cheap and available software system, even if it may not be the best ERP system.

It is a good idea to use a cheap and available ERP software system. But over the years, these cheap software systems proved to be really ineffective for some small businesses. Here are some of the reasons why small businesses often fail to implement or use the best ERP for small businesses often.

Technical Support

It is difficult to upgrade technical support systems for on-premise or software. You have to contact your ERP vendor on a regular basis to get the upgraded technical support. If your ERP system is purchased from third-party vendors, it becomes very difficult to upgrade or add on any additional functionalities to the ERP software, especially when it is an expensive one.

Many ERP vendors charge a very high amount to provide any additional functionality or security features to the ERP software.

ERP Implementation

Implementation of an ERP system requires large upfront capital. Even though many on-premise ERP vendors provide free upgrades to their ERP products, the upgrade can be quite expensive and time-consuming. You may find your company unable to sustain the implementation cost if you make large-scale deployment of ERP in your organization.

What Is the Best ERP For Small Businesses?

Many on-premise ERP vendors also charge a very high license fee for each user in the organization. Enterprise software is quite expensive and the license fee can easily run into thousands of dollars per year. learn more about the functions of ERP at http://www.tactiphone.com/what-is-an-erp-and-what-are-its-functions/

Poor Inventory Management

Small businesses face several problems such as poor inventory management, defective product delivery, poor order management systems, etc. The system to track inventory is the most important ERP system. Inventory tracking helps in improving the operations such as ordering, stock, product quality, and customer service.

Inventory tracking can improve order processing and customer services. On the other hand, defective product delivery can lead to heavy losses to the revenue of the company. Click here to learn more about inventory tracking.

Payroll Management

Payroll is another important component of every small business inventory management system. A payroll system is an important part of any ERP and the success of ERP depends upon its ability to seamlessly integrate with payroll processes.

Enterprise resource planning software handles payroll data across different locations and provides benefits such as no travel, easy access of data across the organization and multiple users, improved accuracy, and reduction in data costs.

Lack of Organizational Structure

Another common problem faced by small businesses is the lack of organizational structure and time wastage in various activities. This is one of the major reasons behind failed ventures. Small ERP software can help solve these problems.

The ERP solutions integrate all the processes of the company and help in increasing the efficiency of the organization. ERP helps in improving order processing, eliminating errors, reducing the cost of production, improving the quality of products, and getting new processes set up.

The ERP solutions can be used for finance, human resource, operations, and inventory management among other processes.

ERP software solutions for small businesses

Today there are numerous vendors offering ERP software solutions for small businesses. Before selecting the right ERP for your organization, you should estimate the present structure of your business and identify the processes that require automation.

If you have a large enterprise, then the selection of ERP software becomes even more important. Since there are various choices available in the market, it is advisable to evaluate the functionality of each software and then make your selection or hire an ERP professional like Connected IT Consulting.

Before installing an ERP solution, it is important to conduct a thorough analysis of your business processes and then decide on the type of help that suits the organization the best.

What is the Difference Between Traditional ERP Systems and ERP Mature Solutions?

ERP (Enterprise Resource Planning) has been around since the mid-1990s. As an industry acronym, ERP stands for enterprise resource planning. It was designed to replace the then obsolete manual system that was once the industry standard. ERP also represents the future of software design.

The main difference between traditional ERP software and ERP independent consultants is that traditional ERP software packages are typically modular, while ERP independent consultants are prescriptive. An ERP software package is basically a coherent set of modules that can be mixed, for instance, to do a myriad of tasks. learn more about the function of ERP at http://www.tactiphone.com/what-is-an-erp-and-what-are-its-functions/

Connected IT Consulting, on the other hand, is free to choose how to organize the modules within the package, often following the format of traditional ERP software. When ERP consultants implement an ERP system, it represents an investment in resources they would not otherwise use.

ERP Implementation Approches

There are two approaches to ERP implementation:

  • ERP as a stand-alone ERP solution and
  • ERP as an integrated solution.

In an ERP solution, ERP software modules are installed into an ERP system and the entire enterprise network is mapped with the ERP modules. This configuration exposes the data to those who need it in real-time.

In an ERP integrated solution, all of the components of the ERP system are installed in one Enterprise Resource Planning (ERP) application that integrates all internal business processes and then allows information to flow between the ERP modules and external business processes.

Traditional ERP systems

It typically made up of five logical layers. These layers include:

  • Applications
  • Business processes
  • Financial processes and
  • Customer relationships.

While this represents the core architecture of an ERP system, the logical layers only represent a portion of the total system. For example, ERP software can integrate with accounting systems and these can be built into the ERP solution using vendors such as QuickBooks and NetERP.

Some ERP vendors like Connected IT Consultants go so far as to build their own accounting systems from the ground up using internally developed software and incorporating them into the ERP solution.

Traditional ERP Systems and ERP Mature Solution

ERP Implementation

Traditional ERP implementation is usually done in phases. During the planning phase, a strategy for success is formulated. This involves determining which processes need to be upgraded or downgraded and how many employees need to be added to the ERP project. After this has been determined, a budget is put into place.

Once the planning phase is complete, it is time to start the implementation. When implementing an ERP, there is a need for a change management process.

ERP implementation can turn out to be quite a nightmare for those who have no experience in this area. The worst thing that can happen is things take longer than expected and a lot more money is wasted than planned. To make things go smoothly, the change management team needs to be involved in all of the decision-making.

ERP Methodology

Using an ERP methodology calls for the incorporation of core attributes from legacy ERP systems. These are designed to work well with existing ERP implementations but are not critical in and of themselves. They are designed to enhance functionality and provide a solidification layer on top of the ERP system.

This functionality allows a business to leverage the value and versatility of the ERP application. Many ERP software vendors provide support for legacy ERP systems but may not provide full functionality in some areas.

Traditional ERP solutions are normally designed to support two environments – on-premise and off-premise. Large businesses may use on-premise ERP solutions while smaller businesses will most likely use off-premise solutions.

It’s common to see many companies using a hybrid ERP architecture that brings functionality from both on-premise and off-premise solutions in a single, integrated, enterprise resource planning (ERP) system.

In fact, there are quite a few ERP vendors that are leveraging multi-vendor and multi-platform software designs to deliver enterprise-wide ERP solutions. However, ERP technology has evolved enough to where it is now possible to run legacy systems in on-premise form too.

What is an ERP and What are its Functions

As much as many businesses may want to embrace ERP software in their businesses,  there’s a need to fully understand what it is and how it works to give the desired expectations.

Meaning of ERP

ERP stands for “enterprise resource planning”.  The main function of this system is to integrate,  organize software data.  It also contains functions that automate business functions.

It also works to increase the efficiency of an organisation by managing and improving how the company’s resources are centralized.  Improving and reducing the number of resources without necessarily sacrificing the important data of the organisation.

Modules of ERP systems

  • Product
  • Life cycle management
  • Supply chain management; purchasing, manufacturing and distribution,
  • Water house management
  • Customer service management(CSM)
  • sales order processing
  • online sales
  • Financials
  • Human resource
  • Decision support

Types of ERP Deployment

ERP system is divided into two main categories;

  • Private deployment
  • Public deployment

They are further divided into three different categories;

  • Cloud ERP deployment; software runs on a provider’s cloud, providing a computing platform.  Maintenance  is handled by the providers
  • On-premise ERP deployment; this is the most traditional model of deploying software where you control everything. learn more about software deployment at https://www.sumologic.com/glossary/software-deployment/
  • ERP software is installed in your data center and the location of your choice. In this deployment though,  installations and maintenance of hardware and software are done by staff.
  • Hybrid ERP deployment; in this deployment module installation and maintenance of both software and hardware is done by both the provider and the organisation. Responsibility is shared depending on the organisation.

What is an ERP and What are its Functions

How ERP Software Systems work

ERP software systems are used in an organisation to perform several tasks that improve the efficiency of an organisation.  Here are some areas where ERP software systems are essential

1.  Human Resource

ERP software systems help in managing company data. This includes the streamlining of employee tasks at hand e.g hiring and payroll.

It can also help in tracking how the employee performance record is.  This will help in identifying issues and solve them first hand.

2.  Supply Chain Management

ERP software system helps in ERP Project Management.  A clear record is available where product and services can be tracked. In turn, it gives the business a better performance.  Delays and misplaced information is taken care of.

3.  Manufacturing

whether a company offers product or services or both,  there’s the aspect of manufacturing.  ERP software systems assist in business communication.  communication between departments in a company is essential.

ERP software systems help to achieve this goal efficiently. The ERP software system also helps me. Automated daily processes, optimize projects,  cost management  and production planning. The ERP system runs on the internet and have cloud storage also, learn more information about the internet as a media of communication by clicking here

4.  Finances

ERP software suite provides a dashboard that assists in giving financial information of the company.  By using an ERP software suite helps in cutting down on information being entered manually.  In addition, it helps in business regulatory compliance.

5.  Data and Cloud Security

Whether the information is stored in the individual company Traditional ERP systems or a provider’s ERP software system, there is guaranteed data security.  Separate software like an modern ERP gives a company an advantage of data security.

You don’t have to deal with the misfortunes of lost data,  which at times incur a lot of unnecessary costs when trying to retrieve the lost data.

6.  Customer Service

In any business,  customer service is key.  With implementing an ERP project,  customer service is guaranteed.  All the necessary data needed for both the company’s and the customer is catered for and also tailor-made to fit the particular customers for the particular company.

Conclusion

There’s no doubt that an embarrassing ERP software system can get a company to the top.  It’s also advisable for any company to get clear information on an ERP software system before getting it installed.