Brett has more than 20 years of business software sales and company management experience. Brett has been involved in more than 300 ERP projects. His passion is customer satisfaction, making sure every client is more than just satisfied. Brett wants our customers to be driven to refer their friends and peers because we offer the best services and technology available and because we exceeded their expectations.
Are templates a truly effective way to make it easier to implement an Enterprise Resource Planning (ERP) solution in your business? Let’s take a closer look.
When setting up your new Enterprise Resource Planning (ERP) solution, the promise of a pre-configured “ERP template” is that it will slash the time and cost involved in implementation.
The idea is to draw on industry standards and typical business management approaches to preset a configuration that a vendor or implementation partner can simply drop-in during your ERP installation.
A templated approach can work in the right circumstances, but there are also a number of reasons it may not work perfectly for your business.
ERP software is made more useful through configuration
Templating doesn’t work in all circumstances because many businesses do not have a standard set of requirements.
To do that your ERP solution needs to align to the workflows, procedures and reporting needs that exist within your business. It needs to cut through the information silos, duplicated effort, and manual workarounds that hamper productivity.
For some, a template might do the trick. For others, a truly customised implementation is required to mirror the specific structures and idiosyncratic approaches that make your team effective.
A template might be a good option for your business if:
You have very standard requirements for your business type or industry.
Your business structure/market is straightforward and unlikely to change dramatically.
You have the adaptability to map processes to standard functionality.
You don’t need integrations or add-ons to achieve the workflows you need.
The benefits of an ERP solution configured specifically to your needs include:
You get the right mix of functionality suited to every part of your operation.
Reporting is tailored to provide flexibility, accuracy and speed.
Complicated and unusual workflows can be reflected precisely.
Data-sharing is seamless for reliable analysis and predictive capabilities.
There’s less of a learning curve for your team to adopt the system.
No two businesses are exactly alike, why should their software be?
I’ve worked with around 20 wholesale distribution businesses, and although there is overlap in the business challenges and functionality they require—there’s no one instance of a solution that would have met all of their needs.
Your uniqueness is one aspect of your competitive advantage and you probably don’t want to lose that. Some businesses operate in non-standard ways because they supply personalised or novel products, or provide next-day delivery, or some other offering that gives them an edge.
Often, a customer will say they only need a standard P&L financial report, but once they actually see what’s included they want to tweak it. Or they want to report by projects, run budgets, or consolidate across multiple ABNs and by sales region. They want reporting suited to their needs, so it saves them time and improves accuracy.
In some cases, the uniqueness and complexity of your business is the driver behind your investment in robust, configurable software. Therefore it pays to think carefully about whether your business needs are actually standard enough to fit within a template.
To template or not: four questions to ask yourself
Here’s some pressing questions you need to answer in order to effectively weigh your options:
Do you have sufficient internal resources? Using a template to set-up your solution may necessitate more work within your business to navigate and manipulate data within your ERP software going forward. Some customers have a strong contingent of internal tech expertise and some don’t—which can make day-to-day usage of your ERP more difficult.
What will align best with your business requirements? If you’re presented with a template that ticks all your boxes, then it makes sense. But even smaller businesses can have complex structures and business management processes—in which case it could be hard to find a template to match. For instance, you may operate across multiple locations, warehouses or countries; have multiple ABNs; or span several links in a vertical supply chain such as manufacturing and distribution.
How will it affect your competitive edge? Perhaps your business systems don’t significantly underpin the value you provide in the market: so a template won’t limit you. If however, your point of difference lies in operational differences in how you bring products to market: a custom ERP implementation might better reflect those unique attributes, workflows or the capacity to create configurable products.
Do you have a period of high-growth ahead? Digital transformation is about preparing your business to capitalise on opportunities in the digital era, where technology is changing at lightning speed. Who knows what tomorrow will bring: new divisions or acquisitions, new products and services, more employees? If you launch your ERP based on standard requirements now, will it be flexible enough to support your plans for the future?
Don’t forget: you’ll live with your ERP for a long time
Modern ERP solutions are powerful and have wide-ranging and long-lasting implications for every aspect of your business. An ERP is not an app designed to do one thing, where you can sign-up and start using it.
In the situation that an ERP template that suits your needs is available, it’s important not to overlook the fact that successful implementation is still required. You should have total confidence in your implementation partner. It pays to ask them:
How often have they done this before, and was it in your industry?
How much do you save by using a template?
How much will it cost if you need changes?
What if your business grows in the future, how flexible it is?
Leverage Technologies has helped hundreds of businesses to select and implement the ideal ERP solution. Where possible we re-use insights, IP, and industry know-how to help reduce the time-to-value for a business.
But our approach is to use knowledge gained from past implementations as a starting point only: a basis for informed discussions that enable us to determine exactly what your business needs and customise the solution for your unique requirements.
Want an expert, consultative team in your corner as you embark on your unique digital transformation? Call 1300 045 046 or email [email protected].
This post helps you understand the difference between cloud, on-premise and hosted private cloud ERP implementations, including the pricing and why you might choose one over another.
New technologies have increased your options when it comes to how you’ll deliver the software you need to run an effective business. The range of choices and technical jargon can create confusion for decision-makers, especially when you’re undergoing a significant digital transformation such as implementing a new Enterprise Resource Planning (ERP) solution.
Let’s break it down, and explore the three main options.
Key differences between cloud, on-premise and hosted ERP deployments
On-premise ERP
On-premise is the traditional way that people have purchased and used software. You pay the total cost up-front and receive a product that you own the licenses to and is installed by your ERP provider and run on your own server. You need to own and manage your physical computer server or servers internally, and complete all the back-ups and upgrades to the software. On-premise software can be set it up so users can access it online and remotely.
How it compares on…
Technical deployment: Your ERP provider will install the software licences on your own office-based server. On-premise installations can overcome barriers such as slow or unreliable internet. You also need to maintain your server, which means you need access to technical expertise.
Cost: Often requires a large upfront capital expenditure to purchase the software and implement it. But there are no continuous subscription fees. You’re also responsible for all ongoing costs of managing the security, maintenance, and replacement of your server/s.
Software functionality: Your ERP provider will apply updates and patches to the software. The software is less scalable: if you need more bandwidth or users you may have to invest in more servers.
Cloud-based ERP
Cloud-based is a more modern and increasingly popular approach where a business pays a subscription to use software, which is made available to them online via a server that is owned and managed by the software vendor. Cloud computing means the server infrastructure, security, data integrity, backups and updates are all managed by the vendor.
How it compares on…
Technical deployment: It’s generally faster and simpler than an on-premise deployment. There’s no need for expensive, on-site infrastructure.
Cost: The prevalence of the cloud-first, Software as a Service (SaaS) model of software and efficiencies of scale it enables for vendors, makes it a more cost-effective option. Many businesses appreciate being able to pay monthly for their software subscription using operational expenditure. You also save on IT management and support costs.
Software functionality: It’s easy to create and build on a mix of integrated functionality, or increase the number of users – helping you scale your business faster if you grow or expand overseas. Updates are automated meaning your software remains current and highly functional.
Hosted ERP
Private hosted cloud means your software (whether you opt for a perpetual license or subscription) is accessible in a cloud environment that dedicated exclusively to your business, via servers hosted and managed either within your company (on-premise) or by an outsourced vendor. This provides the benefits of cloud computing but allows businesses to retain greater control over things like when to implement upgrades.
How it compares on…
Technical deployment: Private clouds are a more complex deployment because you either need to set-up virtual private cloud hosting, or have your own proprietary infrastructure on-premise to create a single-tenant cloud environment. You’ll require access to IT expertise to successfully implement and maintain a private cloud.
Cost: Because your cloud environment is private you will pay more than you would for a public cloud, especially if you need to maintain your own data centres. Added costs will depend on the level of support you require from your virtual private cloud hosting provider.
Software functionality: You can access all the real-time workflows and data-sharing, self-service and scalability that come with having applications available in the cloud.
Cloud vs On-premise vs Private Cloud Security: a comparison
It’s a persistent myth that cloud-based software is less secure. Leading ERP software vendors like SAP, Sage and MYOB are large andinnovative companies whose success has been built on a commitment to delivering top-notch, secure cloud infrastructure, and hefty investments in research and development.
While cloud-based systems significantly reduce the responsibility for managing IT within your business, they don’t significantly reduce the quality of IT management your business can depend on when it comes to the security of your ERP software and business data.
It’s an irony that having greater control over your server or data centres via an on-premise or private cloud deployment can actually make you more vulnerable. Ownership of your own infrastructure does not negate the risks of cyber attacks or downtime—it simply increases your organisation’s control and accountability. You need to have high levels of confidence in the people and systems you rely on to keep your on-premise infrastructure secure and well-maintained.
How to choose between cloud, on-premise or hosted?
It’s easy to see on the face of it how a cloud-based ERP solution could be more appealing because it reduces the resources you need, and increases the flexibility with which you can access functionality and your data. The majority of our clients prefer a cloud-first approach.
Cloud-based software is multi-tenanted, which means multiple companies run the same software side by side (although their data remains private). Conversely, a hosted private cloud has a single tenant—your business. That makes it ideal if you have an especially complex implementation, stringent security needs, or sensitive data: but you will pay a premium for the privilege.
An on-premise implementation can make sense for some companies, especially those that prefer to have more control over costs and their IT infrastructure. Limitations posed by patchy internet access can also make on-premise more suitable in some cases.
Cost is always a factor, but remember that regardless of which option you choose—you will still need to make an additional investment to ensure the successful implementation of the software, and any development work associated with customising the software for special use cases.
Ultimately your decision should be based on what will work best for your business by considering the pros and cons of each deployment option against factors including your budget, internal resources and future growth plans.
It can help to ask yourself:
What option best matches my internet and infrastructure capabilities?
Do I have, or want to continue to invest in, significant internal IT skills/resources?
What’s the best payment option, given my budget, cash flow or tax considerations?
How flexible and scalable does my system need to be to match my evolving business model, talent management approaches, or strategic plans to enter new markets/countries?
If you need more help weighing up the pros and cons of different ERP software deployment methods you can talk to an experienced consultant from Leverage Technologies. Call 1300 045 046 or email [email protected].
In this post, we draw on our experience to reveal the key dangers businesses face in keeping their ERP software implementation project on track, so you can avoid them.
We’re highly experienced in helping guide businesses through the ERP software selection and implementation process—and over many years and hundreds of projects we’ve refined our consultative approach to help our customers avoid the pitfalls that can beset new software implementations.
Enterprise Resource Planning (ERP) software and its implementation is a significant investment. Manage the project poorly and you’ll potentially have wasted money and time on software that doesn’t meet your needs, hasn’t been applied or customised properly, and isn’t understood or embraced by your team.
So, where do ERP software implementation projects usually go wrong?
Top eight reasons that ERP projects don’t deliver
These are the most common reasons ERP software implementation projects exceed their deadline or budget or fail to deliver the functionality needed in your business.
1) Delays in data conversion
This is a major area where projects can run over time. It can be a much bigger job than people first estimate because of the technical aspects. Making data ready for your new system involves a lot of preparation, checking and reconciliation—you need people internally that have the time and capacity to do this work. It takes even longer if you have enormous datasets, the data is not clean, or it’s in many different formats.
2) Poor Reporting
Yes, modern ERP systems come with great reporting tools. But are the reports you’ll rely on every day in the specific format you want? Check and double-check if you have the data, drill-downs, KPIs and other features you’ll need for reporting. Otherwise, you may end up with a massive bill for additional development work to write reports you can actually use.
3) Overlooked integrations
If you’ll require multiple integrations between your ERP and other software you use, it can lead to scope and budget creep. Make sure you take time early in the process to carefully scope and document other systems that must be connected to your ERP to make workflows seamless.
4) Unrealistic timeline
Set the right expectations about how long it will take. Don’t make decisions about timing based on fitting into budgeting windows, lining up with other calendar events, or the arbitrary whims of a particular Board member. You’ll also need to allow plenty of time to train users and test the system. Don’t forget—you’re still running your business while this project rolls out, and both require sufficient time to do well.
5) Ineffective methodology
When you’re evaluating proposals from prospective ERP implementation partners, look carefully at their implementation methodology. Does it suit the size and scale of your implementation goals? Does it fully account for training, testing, data conversion, and the customisation you need?
6) The scope is too ambitious
It’s wise to walk before you run. If your business is transforming from relatively basic software to an ERP solution, it’s recommended that you do so in a phased approach. For example, you could focus on implementing your ERP to improve financial management and manufacturing functionality in phase one, then introduce technologies that enable improved distribution and a paperless warehouse in phase two.
7) Issues with people and resources
Assess the external people you’ll be working with to achieve a successful implementation: are they experienced, do they communicate well, do they gel with the culture and people in your business?Your internal talent, skill and experience in managing a project of this nature will also impact the success of your ERP implementation. In particular, it’s important to appoint an internal project manager that can liaise with your implementation partner, expedite decisions internally, and be accountable for issues that arise.
8) Lack of C-level support
Small problems can become big problems if you don’t have genuine buy-in from C-level executives. A leadership team that is invested in the success of your new ERP software will help find solutions to issues, allocate resources, champion change management efforts, and get the project over the line.
How to avoid problems with your implementation
Choose software and partners carefully – Be thorough when selecting software and your implementation partner: check the references and capability of potential partners, and review software based on a clear understanding of your business needs.
Allocate realistic time and budget to your project: Obviously, there’sno point considering software you can’t afford, or expecting the solution to be introduced overnight. If you don’t understand your implementation providers’ proposal or the total costs/timings due to the methodology they use—stop, rethink and ask more questions.
Make sure you have the internal muscle to implement an ERP: If you have ambitious implementation aspirations, ask yourself if you have the know-how and availability internally to support the implementation and manage change within your business?
Because ERP solutions introduce workflows and data sharing that are designed to be pervasive across your business, if you get it wrong, it can hinder every aspect of your operation.
Choose your software and partners wisely, and manage your implementation project carefully!
Do you need help from an expert team that has guided hundreds of successful implementation projects? Talk to Leverage Technologies: call 1300 045 046 or email [email protected].
Think it might be time to embrace an Enterprise Resource Planning (ERP) solution or upgrade outdated systems to give your business a competitive edge in 2019? Gain total insight into the ‘why and how’ of modern ERP software implementations to help you take action.
In just a short time there’s been momentous leaps and bounds in the way technology enables us to communicate, capture and use data, and lighten the load on our human workforce when it comes to manual tasks and complex analyses.
The business world has changed enormously as a result. Innovation in business models, products, and services is now seen as essential to maintaining a competitive advantage.
However, there’s still room for progress in many organisations, who aren’t yet fully benefiting from technologies that streamline and automate daily tasks and provide the insight required to improve decision-making and customer experience.
Which is why many savvy C-suite leaders will make 2019 the year they harness the power of Enterprise Resource Planning (ERP) software.
If you want to tackle digital transformation in your small to medium enterprise in 2019, this up-to-the-minute guide covers: why an ERP solution is necessary; how to choose the most effective ERP software; and what makes for a successful implementation.
A golden era for ERPs: why 2019 is the ideal time to upgrade
The two most likely triggers for CEOs and CFOs to consider a new ERP solution in 2019 include:
You’ve outgrown your basic accounting software: Your company has grown larger or more complex and your existing software doesn’t allow you to report in a timely way and provide high-level advice to the Board. You’re tired of manually compiling consolidated financial reports and manipulating data to reveal details of costs and performance at the regional or team level.
You have an ERP or bespoke solution that’s past its prime: You implemented a solution many years ago butyour ERP hasn’t stayed current or hasn’t been well supported. Without the functionality you need now, your team is wasting time on convoluted workarounds (rather than benefiting from features that reduce duplication, save time and enhance productivity).
In the first scenario, you might wonder if moving from an accounting platform to ERP software is overkill or not a good fit for your industry or business type. In the second, you might be disillusioned with the idea of one platform that can ‘do everything’.
But in both cases, taking action to implement a robust, full-featured ERP solution in 2019 is a wise move. Here’s why:
2019ERPs are a dramatic improvement
The breadth and depth of what an ERP solution can do hasevolved significantly since the early days. In the 70s and 80s, the software was more limited to technical materials requirements/resources planning (MRP) functionality to support manufacturing and the associated management of shop floor, distribution and accounting tasks.
Infographic – A brief history of Enterprise Resource Planning Software
Today, leading ERP solutions provide a truly comprehensive way to manage whole-of-business workflows and data for every kind of business—often within a Software as a Service (SaaS) model that makes IT management more reliable and cost-effective.
ERPs you can implement in 2019 touch on every aspect of your business including:
Financials
Sales
Purchasing
Production
Inventory
Logistics
Customer Relationship Management (CRM)
Warranty and returns
Business Intelligence and more.
Your data is readily available in the cloud, consistent across every office or warehouse you operate, and upgrades can be applied easily (and often automatically).
You can facilitate a remote workforce or do business via your smartphone while ensuring all employees are working with the same data regardless of where you operate across Australia or around the globe.
Tailored yet flexible: modern ERPs grow with you
One of the most compelling reasons to choose an ERP solution over software that is purely ‘web-based’, is the granular level of customisation that’s possible. Reputable ERP solutions have experienced reseller partners worldwide that work with you to tailor your ERP to match the specific structure, workflows and reporting needs within your enterprise.
Which ERP Software modules are key to your business? Tailor your ERP to match the specific structure, workflows and reporting needs within your enterprise.
Yet customisation isn’t constraining in the modern ERP solution. In 2019,world-leading ERP vendors offer more flexibility than ever before: you can pick and choose from modules that reflect what you need right now and add new functionality as you grow—whether it’s additional modules from the same vendor, affiliated third-party providers, or via seamless integrations.
You might start out with a focus on financial management to support theCFOs growing responsibilities for corporate performance, but then it’s easy to build-out your ERP’s functionality in following years—say, to include an HR management component—as your team expands.
As your business grows or business conditions change, modern ERP solutions can adapt.
Avoid these pitfalls when choosing an ERP in 2019
We’ve established that implementing a new ERP in 2019 is smart if you need greater visibility, insights and automated workflows within your organisation.
Following the steps outlined further within this post will help CEOs and CFOs gain greater clarity around the factors to consider in selecting the right ERP and what to expect at each stage of the process.
But first, it pays to quickly cover where many people go wrong, so you can avoid common pitfalls.
What leads to choosing the wrong ERP software solution?
Factors that contribute to choosing the wrong ERP software – here is what to look out for
Delaying implementation despite an obvious lack of speed, capability and reporting finesse within your business (and growing internal frustration among your employees).
Failing to effectively consult internally in order to comprehensively define your technical requirements for each department and team.
Not weighing up the pros and cons of cloud versus on-premise early in the process.
Thinking in terms of costs alone, rather than how to best enable business process improvement and growth.
Not defining a budget in order to narrow your search parameters and establish clear expectations internally and with your third-party provider.
Here are the essential steps to follow to make a well-considered choice as you explore your ERP options in 2019.
1 – Define what success looks like for your business:
Start by imagining your future state.
How will you know if you’ve chosen the right ERP and had a successful implementation in 12 months from now?
Asking this question is designed to help you elucidate the operational improvements you expect and need your ERP to facilitate, for example:
faster reporting timeframes;
a reduced debtor days ratio;
or less machinery downtime on your production line.
In this early stage, it’s also important to reflect on the processes and structures within your business that must be mirrored in the ERP solution you set-up. It can be helpful to examine your current systems (digital or otherwise) and generate a list of the advantages and drawbacks for each—to help you identify gaps, and the functionality you want to retain.
2 – Explore your technology ‘must-haves’:
Always start with the business process improvements you need to address, but once those are clear in your mind—it’s time to consider the technological factors that will make your business run better. For example:
Do you need the scalability of cloud-first software? In comparison to an on-premise system, software hosted in the cloud is delivered via a subscription-based licensing model which means no large, upfront capital expenditure. There’s also no need for expensive, onsite IT infrastructure and ongoing support to maintain security.
Is mobility essential?Interfaces that can be easily accessed via mobile devices support a productive workforce now and into the future, with the rise of remote work and telecommuting. Also, handheld technologies are increasingly being used to support workers in the field, on the shop floor or in a warehouse to do their jobs better—which should connect to your ERP.
What kind of database do you need? Is big data management a current or potential future concern for your business or industry? What level of security, support and scalability do you need in relation to the database underpinning your ERP?
Are there tools you’ll be using that must be integrated?Identify any essential programs that you will continue to use that should be integrated with your ERP software, e.g., MS Office.
Will you be adopting IoT, AI, AR, VR etc. within your products or systems? When you consider the emerging technologies that may become commonplace in your industry, your choice of ERP is affected. An enterprise connected by a powerful ERP solution with automation and machine learning capabilities that can leverage data from multiple sources.
Is e-commerce and geolocation marketing important? Is being able to trade online seamlessly or implement location-based marketing tools like beacons vital for your future growth? Your ERP should allow for e-commerce, customer relationship management, and EDI integration.
Modern ERPs have the potential to provide your business with a mind-bogglingly vast array of features and functions. Before you delve too deeply into researching software products, prioritise the functionality that matters most. For instance, if you’re a wholesale distributor, you might focus attention on finance, inventory and purchasing functionality. If you’re a food processor, manufacturing functionality is key, but you might specifically be keen to improve your ability to manage traceability. Some tips for prioritising functionality:
Refer back to the notes you created in step one—was there functionality from the systems you currently use every day that must carry over into a new solution? What were the gaps?
Ask a ‘functional head’ from each department to review and document requirements based on their day-to-day activities.
Use your business structure and planning documents to help determine features you need: for example if you operate in multiple countries or have multiple ABNs, you need functionality to support cross-entity consolidation.
Don’t focus on features that you only might need. If you don’t currently have complex manufacturing management needs, don’t prioritise that functionality. You can grow into your ERP solution and add new functionality as needed.
Refine your notes into a high-level checklist (1-2 pages) that you can use to drill down into the detail as you know more about what’s possible within different software.
How much should you spend on ERP software in 2019? What’s the typical investment required for a company of your size? The answer will vary depending on your businesses requirements, number of users, customisations, integrations and your implementation needs. However, ERP investments tend to range from between $20,000 to more than $1 million for a larger corporation with more than 1000 employees.
In this day and age, there’s a treasure trove of free information available online to help businesses research their software options. There are excellentblogs, comparison sites, and case studies that can help you understand the ERP market and differences between products. Remember though that the information available online is general in nature, and pricing will not always be transparent. That’s because each company’s instance of ERP software licensing and implementation will be unique to them. If you have questions you can alwaysspeak to an experienced ERP consultant from Leverage Technologies—we’re genuinely interested in helping you find the best solution to function better, and we’ll be up-front if we think the ERP software we support isn’t right for your business.
6 – Obtain and interpret proposals for ERP implementation:
So, you’ve got a shortlist of products you think might be a good fit. The next step is to seek a proposal from atrustworthy ERP implementation partner, like Leverage Technologies. Because you’ve done the work to define what you want in terms of business process improvements, technology and functionality—this should help ensure you receive proposals that match your needs, which you can assess based on the investment budget you’ve allocated. Keep in mind that if you obtain multiple proposals, there can be differences in price depending on: the software and its licensing model; the providers’ understanding of functionality and customisation required; support options; implementation methodologies and process; and team size and expertise. Some providers may incorrectly scope a project or make assumptions that reveal their lack of experience, which means their proposal doesn’t accurately reflect the true time and effort required for a successful implementation.
Implementing new ERP software in a timely way, and within your budget will rest heavily on project management. Your ERP implementation partner and your internal project management team need to work in unison to ensure decisions can be made quickly, scope changes are minimised, and issues can be addressed through internal channels. It’s important toappoint an internal project manager that has the authority, respect and communication skills required to guide your implementation. Otherinternal muscle should be engaged during your ERP implementation to manage the configuration, training and testing required to deliver a great end result.
If you adopt a new ERP solution in 2019, user acceptance testing represents a key milestone in your implementation process. You can’t skip testing or do it sloppily and expect a smooth transition to your new ERP software. It’s important to consider:
When will you start and how will you phase testing in order to be ready for ‘go-live’?
What kind of test scenarios are required to understand if the system is up-to-scratch?
What different test environments are needed to replicate the product environment?
What will you measure and how will your record and present test results?
What is your change management plan to address issues that arise in testing?
Have testers been chosen, and is there a commitment to allocating the time required?
In 2019, ERP software is key to digital readiness
It has become unavoidable to use technology to support business process management in one form or another. Even if you don’t consider yourself a ‘digital business’, it’s likely you already use a wide range of software and hardware solutions.
The problem is these technologies are often applied haphazardly, creating a hodgepodge of infrastructure, data, skills and understanding across your business. That leads to increased risk, costs, confusion, information silos, and lack of visibility for senior executives.
Lack of continuity in the systems, data and supply chains you rely on to operate your business can bring things to a standstill when what you actually want is to accelerate and grow.
That’s why implementing ERP software in 2019 is worthwhile: especially for businesses experiencing rapid growth that are crying out for a more integrated, coordinated business landscape.
Start by examining your business, software and implementation needs step-by-step. Prepare to make this your year to transition to a more integrated, high-level ERP solution that will bring significant benefits to your business in both the short and long-term.
Want help to navigate the world of ERP software to ensure you reap the benefits of digital transformation in 2019? Call 1300 045 046 or email [email protected].
This article looks at the intersection of business management software and artificial intelligence, and answers the question: how is AI enhancing ERP software to drive business transformation?
Artificial intelligence (AI) is evolving rapidly. Increasingly, AI systems now impact a multitude of enterprise applications, taking over functions that were for a long time the domain of human problem-solving.
AI will likely to transform the world of work and a number of industries that are ripe for automation. In particular, in organisations that generate and collect a lot of data, AI will be a more reliable way to draw out patterns, trends and actions that in the past could only be achieved through human reasoning or intuition.
The technology is powering solutions that can: learn and reason; apply logic; process vision and motion to gain insights; and use an understanding of abstract ideas, complex tasks, and language, to solve problems.
AI is now essential for business software
So far, AI has had an enormous impact on everyday business functions ofEnterprise Resource Planning (ERP) solutions. ERP software helps businesses to manage their entire organisation and includes modules such as accounting, finance, inventories, manufacturing, analytics, reporting and more.
A traditional ERP solution needs human intervention to execute critical tasks. For instance: an accountant to perform non-automated bookkeeping tasks; a production manager to meet material scheduling requirements; or a warehouse manager on site to manage inventories and schedule deliveries.
The business management software of today has much more powerful capabilities than it had five years ago. A smart ERP can execute most of these difficult, time-consuming tasks automatically.
Smart algorithms and AI are used within leading ERPs to create intelligent systems that can perform tasks without human involvement. Limits on the software’s ability to automate tasks or provide insights are gradually falling away thanks to the ongoing convergence of AI, the cloud, Internet of Things (IoT), and bots.
How does your business benefit?
Software that harnesses AI automates tasks and enables people to see patterns that aren’t immediately apparent. That saves your employees time and has the potential toaugment the abilities of analysts, leaders and teams that need to make fast accurate decisions.
Other efficiency gains that organisations using an ERP powered by AI can benefit from include:
Forecasting: AI collects and analyses historical and current data from various sources within an enterprise. It predicts future trends and delivers actionable business insights at the right time.
Reconciliation: An organisation can use AI to interpret data patterns and reconcile insights from internal and external data sources.
Control: AI tracks systems across multiple business units of an organisation, triggering actions and notifications in response to certain events.
AI and machine learning can also minimise human error, boost responsiveness, and enhance the customer experience.
Having these advantages via your foundational business management software—your ERP—has powerful, real-life, business applications.
Five real-world examples of how ERP and AI converge
Here are five ways data is being analysed and applied by advanced AI and machine learning algorithms embedded within ERPs to transform enterprise performance:
Production planning: Manufacturers are leveraging AI to extract and analyse massive streams of data from diverse internal and external sources. They are using the resultant smart insights to plan andstreamline production workflows.
Bank feeds: AI-complemented ERP automates andsimplifies some everyday accounting tasks. For example, it enables personnel to pull financial account feeds automatically.
Supply chain management: Inventory control is one of the ERP areas where AI is having the highest impact. A vital aspect of the application is demand prediction, which lets enterprises incorporate stock movement and market/consumer analytics into deliveries scheduling and procurement plans.
Sales/customer experience:Marketing professionals across Australia and New Zealand consider AI to be an indispensable source of the insights needed to drive superior customer experiences and sales growth going forward. The technology takes over and automates some of the most time-consuming administrative tasks in sales and marketing, allowing businesses to improve employee productivity.
Business intelligence from database management: Companies are using machine learning to manage databases of information gathered from cloud-hosted or on-premises ERP sources. The technology captures, replicates, and analyses structured data available in locations such as relational databases, IoT devices, the cloud, or mobile apps. An enterprise can leverage the system to analyse and generate business intelligence from transactional or sales data and customer information.
What does the future hold?
As AI and ERP convergence intensifies with time, the distinction between them will blur. It will reach a point where companies must have an ERP capable of automation, smart insights and predictive analysis to differentiate and compete effectively.
Fortunately, cloud computing and the platform/software as a service industry continue to make it cost-effective for small to medium-sized businesses to leverage and reap the rewards of AI-driven ERP systems.
Start a conversation today about the intelligent features you need in your ERP solution. Contact Leverage Technologies on 1300 045 046 or email [email protected].
Has your ERP almost reached its end of life or end of usefulness, but you’re not sure if you can justify the cost, time or effort required to implement a new system?
The fact you’re reading this article is probably a good indicator that you’re frustrated with the status quo. Enterprise Resource Planning (ERP) software sits at the centre of business operations, so when it’s not quite up to the job, it can make your life harder.
Let’s examine the signs that your existing ERP platform is in dire need of an upgrade, what barriers and benefits come with transforming your tech, and the true cost of doing nothing.
An ERP is good, until it’s not…
The typical lifespan of ERP software is around 10 years. After that businesses often need to stop and rethink whether the technology is still meeting their needs. A lot can change in 10 years—including your business model, team members and the technologies available on the market.
Maybe your current ERP hasn’t kept pace with change. Or if your company is growing rapidly, the problem could be that the solution you chose originally—which was a good match then—doesn’t have the features your company needs right now or into the future.
Top signs an ERP upgrade is urgent
These are the warning signs your business needs to look out for:
People rely on other programs or apps as a work-around to using your ERP;
Your team can’t easily complete tasks in the field or work remotely in the cloud;
Your ERP isn’t truly integrated with core business functions, like finance or marketing;
You don’t have access to features, add-ons or workflows your competitors use as standard;
Your ERP feels slow and clunky to use and it doesn’t parse data in real-time;
When your team has a problem with the ERP it’s hard to get vendor support or fixes.
When you’re tired of struggling with an ineffective ERP, it’s easy to arrive at the decision that a new ERP is the best course of action. However, the thought of implementing a new system is often unappealing. It requires internal buy-in, funding and time to implement.
But where organisations can really get stuck is answering this question: what’s the ideal alternative? How do you even start researching when there are so many options?
The following resources can help you build a business case, and simplify the process of determining what kind of solution and vendor you’ll benefit from:
Review our list ofeight strategic business considerations that will shape the kind of ERP you go looking for. For instance, what kind of business intelligence insights will you need, and what are your priorities when it comes to choosing a reseller/partner—who will play an influential role in your implementation success and ongoing support needs.
Selecting new software involves an investment, and price considerations will obviously play into your choice about when and how to upgrade.
But it’s important to remember that the true value of a quality ERP is a better functioning business that can scale and grow. In fact,the cost of NOT implementing an effective ERP solution should be part of the return on investment calculation.
As you get bigger, problems with your processes or internal communication don’t magically disappear. In fact, they become amplified. This is especially true if you operate in a complex industry or business environment, such as across multiple sites or countries.
An ideal ERP will improve visibility across teams and your entire operation, increase productivity. automate repetitive tasks, and provide insights you can use for clear decision-making and better forecasting.
When cash flow is improved, employees are high-performing, and your customers are completely satisfied, loyal and recommending you to others—you can expect more sustainable business growth and profitability over the long-term.
That’s an excellent reason to act now if your current ERP isn’t up to scratch.
At Leverage Technologies, we help Australian businesses find and implement the right ERP solution to grow smart. For more information or to speak to a consultant call 1300 045 046 or email [email protected].
The aim of this post is to highlight the sorts of indicators that may lead a company to consider looking at installing an ERP system. These are the “7 ERP readiness signals” to look out for.
There is a certain percentage of small companies that end up becoming larger companies with more complex operating environments. If this is the case with your organisation then it may be the case that your current accounting system may no longer be the right system to help you achieve your business objectives.
1. Data File Too Large/Large Number of Concurrent Users
Once the data file of a server-based small business accounting system becomes too large, the operation of the system can slow down considerably or even start crashing. This leads to user frustration as it takes them longer to complete routine tasks and lost productivity if the system needs to reboot. Similarly, once more and more users start accessing a small business accounting package its performance will start to slow leading to user frustration and lost productivity.
ERP systems are underpinned by a scalable database (usually SQL) and do not suffer from these limitations.
2. Large Inventory List/More Complex Inventory Handling Requirements
Once a company’s inventory list has become a certain size it will affect the running speed of small business accounting packages. In addition, companies tend to require more complex inventory handling procedures as their inventory list grows.
ERP systems are able to perform key inventory processes such as barcoding, serial number tracking, batch processing, automatic re-ordering; and cater for inventory sub-items, multiple pricing levels, multiple bins and multiple warehouses; features not available (or only available in a limited capacity) in small business accounting packages.
As companies grow they will tend to add additional software packages (such as CRM systems, Warehouse Management Systems etc) to their business to perform specific tasks. This can lead to what’s known as the “hairball” effect where there are several disparate systems requiring data to be double-entered (into one system and then also into the accounting system) and there being no acknowledged source of data truth.
ERP systems will combine many of the functions performed by disparate systems into an integrated whole-of-business system, eliminating the need to double enter data. The database underpinning the ERP system will also act as a single source of truth.
4. Reporting Done on Spreadsheets
One of the unpleasant side effects having disparate software systems is that it means that customers are quite often forced to resort to collating data on spreadsheets to report on various aspects of their business. Not only is this process time consuming but it is also prone to human error.
ERP systems have a comprehensive list of pre-built reports and also come with report writers which give customers the ability to produce custom reports so that they can report on any aspect of their business.
Small business accounting systems have been developed to cater for small businesses – which are usually single office entities. Once a business grows to take on multiple sites, collating data from these sites can be problematic for such systems.
ERP systems have been designed to cater for multiple offices and can consolidate the data from each of these offices for reporting purposes.
6. Dealing with Foreign Currencies/Overseas Suppliers
Foreign currency management tends not to be a feature of small business accounting systems necessitating the use of spreadsheets on the side for data manipulation and then double entry back into the accounting system. Similarly, importing goods from overseas mean that landed costs need to be accounted for which aren’t a standard feature of small business accounting systems.
ERP systems have in-built foreign currency and landed costs functionality.
Any sort of jobbing or project management requirement that necessitates the use of budgets; resource allocation, scheduling and tracking; sub-contracting, progress invoicing or timesheeting will not be able to be catered to by small business accounting systems.
Most ERP systems have job costing or project management modules which can cater to these requirements.
Leverage Technologies has a range of ERP solutions that cater to growing Australian businesses. For further information on any of these solutions please call us on 1300 045 046 or email [email protected] today.
