Understanding the ERP Implementation Process? What is ERP Implementation?
Enterprise Resource Planning software is a comprehensive solution for integrating the various aspects of business operations in a single database. ERP is a business process management essential, ensuring that all operations can be monitored and analyzed to optimize contributions to the enterprise’s growth and profitability. Frequently used ERP software include Epicor® ERP, SYSPRO®, Odoo® and more.
The ERP implementation process is carefully planned to achieve the most benefit to your company. The process will involve data migration from previous systems, building dashboards and reporting, composing the software specifications and training employees how to use their new software system.
Implementing ERP software is a large undertaking that impacts employees and processes across the entire company. Typical ERP business process integrations include:
- product planning
- sales and marketing
The evolution of different departments in a large enterprise is inevitable as the business experiences robust growth. Each department may have its own corresponding systems and ERP software provides the centralizing tool to avoid costly inter-departmental miscommunication. The monetary impact of miscommunication can be significant. According to a report from financesonline.com, large enterprises can lose as much as $62.4 million per year due to miscommunication, while small businesses can rack up $42,000 in annual losses due to internal miscommunication. These errors also decrease productivity when they cause employees to waste up to 40 productive minutes per day.
The ERP implementation process is critical to the success of your business.
A Successful ERP Implementation:
What ROI does ERP implementation bring to the table? According to the Aberdeen Group:
- 33% improvement in inventory returns
- 18% faster cycle times
- 17% more compliance for internal schedules
- Operational cost reductions up to 25% for Best-in-Class midmarket organizations
The ROI numbers are impressive enough that ERP has spread from its traditional usage at only the largest manufacturing organizations. Today, Aberdeen reports that 84% of organizations with 100-1000 employees have implemented ERP.