Frappe
ERPNext
Modules
ERP Guide
Chapter 7
Configuring your ERP system
Why use an ERP?
Based on the discussions earlier, and the gap analysis conducted, Spindl finds itself ready to begin configuring its ERP system.
Lyn gathers the team, along with Saf and Mel, to discuss their steps moving forward. Configuration, Lyn explains, simply means they’ll be personalizing their ERP system with their own branding, SOPs, and any data gathered and tracked so far. Once this is done, the system will be ready to use, and the old system can be rendered defunct. This step is the culmination of all things that have been done so far:
Creating goals for the implementation
Evaluating various ERP systems
Conducting trials/testing
Setting up an Agile implementation
Identifying Key Performance Indicators based on the business goals
Identifying the Project Champion and the team
Setting up an Agile implementation
All of the above tasks have sufficiently equipped Spindl to proceed with the configuration. However, efficiency is key. Configuration cannot haphazardly take place, Lyn points out. It needs to be systematic and logical.
On one hand, they were happy to see increasing operational problems this since it's a sign of growth. On the other hand, they seriously needed something to help manage this never ending series of operations. Simple accounting tools and spreadsheets were no longer cutting it.
Saf and Mel realize if they keep it up, they’ll be stuck trying to ensure their business is functional. Looking for solutions, they reach out far and wide. What’s something they can use to manage their business? What’s something that will give them the time to focus on profitability and growth? Of course, while there isn’t a miraculous solution, their research leads them to a place they can start with: an ERP system.
Small businesses and large businesses share a lot of complexities—even if it doesn’t appear that way. As we discussed earlier, the fundamental problem is that the processes small businesses utilize early on aren’t built to scale. As the business grows, it becomes harder to maintain consistency and efficiency. ERP software eliminates that problem. It is designed to improve with the company.
It seems like setting up an ERP system is the answer, but it requires time—a resource they are short of already.
Is it worth investing time in then? And why?
Product Catalog
And so it began: conversations about growth, changes, family, nostalgia, and frustrations. Their shared love for art and clothes, a disdain for increasingly unsustainable clothing trends, and mutual boredom of their stagnating work-life gave birth to something special—an idea to start a company!
They called it Spindl. In a market dominated by fast fashion giants, Spindl had something unique to offer—a clothing company driven by longevity and sustainability.
Saf and Mel decided to put capital into their business idea. It was risky, but they believed in it. After sourcing seed investments from families and local contacts, and putting their own money in, they realized they’d need more. So they turned to investors. It wasn’t an easy job by any means; it took them many months of planning, ethically sourcing yarn, creating solid proof of concepts, and going to investors after investors to build the company of their dreams.
With their initial seed funding secured, Saf and Mel laid the groundwork for their business. They began hiring and training employees, securing supply contracts, setting up infrastructure for production, reaching out to distributors, started some marketing, and so on. It took a while for them to kickstart production between looking for quality suppliers and setting up manufacturing, but they got it done with some persistence.
Eventually, they almost had everything they needed to set up a smooth-functioning manufacturing business. They also decided they would avoid spending a lot on advertising traditionally. Instead, they focused their attention on where they knew their audience would be receptive—social media. Striking deals with local influencers to test and wear their clothing before launch helped them gain both traction and validation.
Their proposition was simple: in this day and age, sustainability is paramount; with their clothes, people had the chance to build a long-lasting, yet chic closet—all at a competitive price. A few weeks after their website went live, it looked that they had a hit on their hands.
Assembling the team
Small businesses are using QuickBooks for accounting. Slack for internal discussions. Post-Its for reminders. Pigeons for mailing. Each of these is a business-critical process, yet completely disjointed. It’s like using tape to hold shards of glass together. Functional, but not efficient.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Manage sales, purchases, inventory, billing, quotes, leads, customers, payroll,* *and much more.
Have your data safely stored in one place. No running around like a headless chicken looking for stuff from spreadsheets or emails or different apps.
Eliminate redundancy and repetitiveness. Because everything is integrated, you’re not entering the same data in multiple places.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Branding
The first task is to set up basic identifying information about the company. Spindl's logo, name, trademark, etcetera falls under this category.
Branding gives the ERP system a unique identity. Any documents that are stored and printed, sent to third parties, or for interdepartmental communications will all be branded as such if the details are set up.
Mel is quick to counter; picking someone who knows the company itself is more important than knowing an ERP, as they’ll be the person who has a good hand over the operations of the business.
Neither are bad approaches, Dex (from manufacturing) points out. There are pros and cons to both; however, in both cases, the PC absolutely must be someone who is enthusiastic about the task at hand, and it must be an explicitly defined role. There are many risks of an implementation failing if there’s any ambiguity of who the Project Champion is, or if they lack the drive to see the implementation all the way to completion. Building on Dex’s comments, Saf points out that the teams at Spindl will consistently communicate with the Project Champion, whether internal or not. It is best to hire someone who knows the ins and outs of something that is unknown to them and then communicate their needs to the PC. It seems like this person is the single most important factor in the success of their ERP implementation.
Mel concedes. Aware of the importance of a Project Champion, Spindl decides to hire Lyn, an ERP Expert, and Project Manager, to help them undertake this Herculean task. They communicate their requirements and goals to Lyn and trust them to spearhead their ERP implementation. Lyn, who brings years of experience to the table, is confident about the project and stresses the importance of getting things up and running. Saf seems a bit unsure about the approach. There are aspects of modules that might require customization, and Saf believes it should be made a priority. While that seems sensible on the surface-level, Lyn explains the benefits of an iterative, early adoption and introduces Spindl to the earlier-discussed Agile implementation method.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
User roles and permissions
Not everyone is privy to the same information. Employees, based on their departments and their roles, only require access to certain documents. Setting up the right permissions is a great tool to avoid any sort of mismanagement of data. Moreover, it aids the users of the ERP system by keeping their instances decluttered with unnecessary information.
In the case of Spindl, Dex, who runs manufacturing, does not necessarily require access to accounting documents such as the balance sheet or payroll details. On the other hand, Ren from accounting requires access to various documents from the procurements and inventory department to keep track of expenses and assets.
Roles can be highly varied. Setting up the correct permissions for the defined roles can be laborious at first. However, once the ERP system is used regularly, this ensures smooth sailing.
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Tax and statutory compliance
Many variables influence tax and statutory compliance (e.g., the industry, country, state/local laws and standards, etc.). Using the accounting tool also makes it much easier to calculate taxes. The goal of configuring tax and statutory nuances in the system itself works toward streamlining business processes. It also significantly lowers the margin of error, since the guidelines/templates that are set will apply to all transactions that take place using the system.
Missing supplies.
Quality issues.
Late product deliveries.
Cash flow and quickly diminishing profit.
Based on this information, they plan out their goals:
Organize and manage their purchases.
Categorize and track their inventory and stock.
Create a quality assurance management pipeline.
Streamline their production for quicker deliveries.
Focus on increasing their revenue and profit.
With these goals in mind, Spindl must now find the right software to build their system.
If the Project Champion is the Superman of the implementation, these folks are the Justice League. For every module being implemented, there’s a corresponding department. Each department should identify a team member to represent their respective ERP module. This person becomes the DRI (‘directly responsible individual’) in ensuring that all master data is supplied, UAT (‘user acceptance testing’) is conducted and signs off on the live version of the module.
Based on this information, they plan out their goals:
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Data migration
Migrating existing data is the next key step in setting up a business on ERP software. This process is meticulous; it takes all the data currently tracked by the company and puts it into its ERP system. Most ERP systems have data migration tools which make the process easier. As with all steps so far, following a certain plan makes sure that the transition is seamless.
Not only does this save time, but it also creates a clear channel of communication between the people involved in the implementation process.
Based on their goals for their ERP implementation, Spindl has decided on the modules they would require.
Organize and manage their purchases - Purchase Management
Categorize and track their inventory and stock - Inventory Management
Create a quality assurance management pipeline - Quality Assurance Management
Streamline their production for quicker deliveries - Manufacturing Management
Focus on increasing their revenue and profit - Accounting
At this stage, Saf and Mel have a much clearer picture of what they’re looking for. Next comes a new challenge—picking the ERP software that will become the backbone of their business. The modules you choose to implement becomes the largest deciding factor of what ERP software you should go with. Not all businesses need every type of module provided by an ERP, and not all ERP software provides the modules required by a business. There’s a diversity in the needs of businesses, and that requires different software.
Streamline their production for quicker deliveries.
Focus on increasing their revenue and profit.
With these goals in mind, Spindl must now find the right software to build their system.
Setting tangible goals for your implementation is one of the biggest initial challenges. For you to get started, you must reflect on what exactly you want out of an ERP. Prioritize what problems need to be addressed first. Use that to derive which parts of your business need to be implemented first within your ERP. During this process, remember that a finished product doesn’t start as being good—it is built to be that way over time. Bob Ross doesn’t start his paintings by adding the trees, mountains, and birds. A positive attitude and acrylic gesso come first, and then the background, followed by the color-blocking. The finishing touch lies in the details.
Based on this information, they plan out their goals:
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Chart of Accounts
Lyn provides Ren (from accounting) with templates. First and foremost, they will migrate the chart of accounts. The reason it takes precedence over other data is that it forms the blueprint of Spindl, an organization. The CoA helps the system (and those using it) to understand:
What is Spindl worth?
How much debt has Spindl taken?
How much profit is Spindl making (and hence paying as taxes)?
How much is Spindl selling?
How are Spindl's expenses broken up?
The chart of accounts is an umbrella term for the names of the accounts of a company that are required for accounting and bookkeeping. It also is a way of classifying accounting Entries (mostly based on statutory, such as tax, compliance laws, etc.). The balance sheet, profit and loss statement, account heads/ledgers, and other account types all comprise the chart of accounts.
Each of these, when put together, creates a solid picture of the company’s current state. As such, it’s highly recommended that you start with this before moving on to the next step.
Not only does this save time, but it also creates a clear channel of communication between the people involved in the implementation process.
Based on their goals for their ERP implementation, Spindl has decided on the modules they would require.
Organize and manage their purchases - Purchase Management
Categorize and track their inventory and stock - Inventory Management
Create a quality assurance management pipeline - Quality Assurance Management
Streamline their production for quicker deliveries - Manufacturing Management
Focus on increasing their revenue and profit - Accounting
At this stage, Saf and Mel have a much clearer picture of what they’re looking for. Next comes a new challenge—picking the ERP software that will become the backbone of their business. The modules you choose to implement becomes the largest deciding factor of what ERP software you should go with. Not all businesses need every type of module provided by an ERP, and not all ERP software provides the modules required by a business. There’s a diversity in the needs of businesses, and that requires different software.
Streamline their production for quicker deliveries.
Focus on increasing their revenue and profit.
With these goals in mind, Spindl must now find the right software to build their system.
Setting tangible goals for your implementation is one of the biggest initial challenges. For you to get started, you must reflect on what exactly you want out of an ERP. Prioritize what problems need to be addressed first. Use that to derive which parts of your business need to be implemented first within your ERP. During this process, remember that a finished product doesn’t start as being good—it is built to be that way over time. Bob Ross doesn’t start his paintings by adding the trees, mountains, and birds. A positive attitude and acrylic gesso come first, and then the background, followed by the color-blocking. The finishing touch lies in the details.
Based on this information, they plan out their goals:
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Importing master data
As the final step in the configuration process, Lia from QA, Dex from manufacturing, and Max from procurements and inventory each compile existing data from their respective departments. This is the master data—a collection of all valuable information that has been stored, tracked, and shared within Spindl so far. This is the data that will be stored in the system, and continue being tracked by the departments as they begin as they start using the relevant ERP modules.
Your opening stock (e.g., your current inventory, its location, expiry, etc.) balance should be updated as part of this process.
Lyn, after making sure everything is in order, gives the implementers the go-ahead for importing the master data into the company’s almost-complete ERP system.
This final task completes the configuration process. Spindl finally is ready to use its ERP system.
Lyn, after making sure everything is in order, gives the implementers the go-ahead for importing the master data into the company’s almost-complete ERP system.
How much debt has Spindl taken?
How much profit is Spindl making (and hence paying as taxes)?
How much is Spindl selling?
How are Spindl's expenses broken up?
The chart of accounts is an umbrella term for the names of the accounts of a company that are required for accounting and bookkeeping. It also is a way of classifying accounting Entries (mostly based on statutory, such as tax, compliance laws, etc.). The balance sheet, profit and loss statement, account heads/ledgers, and other account types all comprise the chart of accounts.
Each of these, when put together, creates a solid picture of the company’s current state. As such, it’s highly recommended that you start with this before moving on to the next step.
Not only does this save time, but it also creates a clear channel of communication between the people involved in the implementation process.
Based on their goals for their ERP implementation, Spindl has decided on the modules they would require.
Organize and manage their purchases - Purchase Management
Categorize and track their inventory and stock - Inventory Management
Create a quality assurance management pipeline - Quality Assurance Management
Streamline their production for quicker deliveries - Manufacturing Management
Focus on increasing their revenue and profit - Accounting
At this stage, Saf and Mel have a much clearer picture of what they’re looking for. Next comes a new challenge—picking the ERP software that will become the backbone of their business. The modules you choose to implement becomes the largest deciding factor of what ERP software you should go with. Not all businesses need every type of module provided by an ERP, and not all ERP software provides the modules required by a business. There’s a diversity in the needs of businesses, and that requires different software.
Streamline their production for quicker deliveries.
Focus on increasing their revenue and profit.
With these goals in mind, Spindl must now find the right software to build their system.
Setting tangible goals for your implementation is one of the biggest initial challenges. For you to get started, you must reflect on what exactly you want out of an ERP. Prioritize what problems need to be addressed first. Use that to derive which parts of your business need to be implemented first within your ERP. During this process, remember that a finished product doesn’t start as being good—it is built to be that way over time. Bob Ross doesn’t start his paintings by adding the trees, mountains, and birds. A positive attitude and acrylic gesso come first, and then the background, followed by the color-blocking. The finishing touch lies in the details.
Based on this information, they plan out their goals:
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
The beginning of something better
Saf, Mel, and their team reflect over the past months.
They find themselves at a peak—the first of many. They’ve successfully implemented an ERP system. Each of Spindl's departments has fully functional modules. After a few weeks of settling into using their new ERP system, Saf and Mel decide it is time to pull the plug on their old, now-defunct system.
There is the occasional hiccup. Sometimes things don’t work quite as expected. Sometimes there are human errors. They maintain a healthy stream of communication with the implementers when they need and manage to keep working through any issues that may arise.
It’s been a long, winding path to get here. Not all of this can be attributed to their ERP system; at the end of the day, it is a tool that they actively utilized to reach their goals. But their journey isn’t quite over yet. They’ve built the foundation for stabilizing their business, yes. Instead of treating this as the end of their journey of strengthening their brainchild, Spindl, they treat it as the beginning of a new chapter.
In the next chapter, A Deep-Dive Into Modules, we’ll explore how Spindl's various departments implement and use individual modules, along with the challenges they face.
Lyn, after making sure everything is in order, gives the implementers the go-ahead for importing the master data into the company’s almost-complete ERP system.
How much debt has Spindl taken?
How much profit is Spindl making (and hence paying as taxes)?
How much is Spindl selling?
How are Spindl's expenses broken up?
The chart of accounts is an umbrella term for the names of the accounts of a company that are required for accounting and bookkeeping. It also is a way of classifying accounting Entries (mostly based on statutory, such as tax, compliance laws, etc.). The balance sheet, profit and loss statement, account heads/ledgers, and other account types all comprise the chart of accounts.
Each of these, when put together, creates a solid picture of the company’s current state. As such, it’s highly recommended that you start with this before moving on to the next step.
Not only does this save time, but it also creates a clear channel of communication between the people involved in the implementation process.
Based on their goals for their ERP implementation, Spindl has decided on the modules they would require.
Organize and manage their purchases - Purchase Management
Categorize and track their inventory and stock - Inventory Management
Create a quality assurance management pipeline - Quality Assurance Management
Streamline their production for quicker deliveries - Manufacturing Management
Focus on increasing their revenue and profit - Accounting
At this stage, Saf and Mel have a much clearer picture of what they’re looking for. Next comes a new challenge—picking the ERP software that will become the backbone of their business. The modules you choose to implement becomes the largest deciding factor of what ERP software you should go with. Not all businesses need every type of module provided by an ERP, and not all ERP software provides the modules required by a business. There’s a diversity in the needs of businesses, and that requires different software.
Streamline their production for quicker deliveries.
Focus on increasing their revenue and profit.
With these goals in mind, Spindl must now find the right software to build their system.
Setting tangible goals for your implementation is one of the biggest initial challenges. For you to get started, you must reflect on what exactly you want out of an ERP. Prioritize what problems need to be addressed first. Use that to derive which parts of your business need to be implemented first within your ERP. During this process, remember that a finished product doesn’t start as being good—it is built to be that way over time. Bob Ross doesn’t start his paintings by adding the trees, mountains, and birds. A positive attitude and acrylic gesso come first, and then the background, followed by the color-blocking. The finishing touch lies in the details.
Based on this information, they plan out their goals:
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Revisiting your goals and setting Key Performance Indicators
(KPIs)
"Everything depends upon execution; having just a vision is no solution."
-Stephen Sondheim (Composer, Lyricist)
Mel, Saf, and their team have already set their goals for their ERP implementation. Let’s quickly revisit them:
Organize and manage their purchases
Categorize and track their inventory and stock
Create a quality assurance management pipeline
Streamline their production for quicker deliveries
Focus on increasing their revenue and profit
Lyn explains that while these goals are attainable, there is no current way they can calculate whether or not these goals have been met. That’s why they require Key Performance Indicators (or KPIs). KPIs, Lyn goes on to explain, are measurements they can use to gauge whether or not they are fulfilling their goals. This will not only ensure that they’re going in the right direction but also help them make smarter business decisions. Simply put, KPIs exist to evaluate the success (or failure) of any given project.
While goals are arbitrary, KPIs bring metrics into the picture. They are necessary to make sure you get the best out of your ERP implementation. The Return of Investment (or ROI) is not the only thing to consider. It is necessary to delve into more nuanced metrics to truly gauge what’s changed over time.
Streamline their production for quicker deliveries - Manufacturing Management
Focus on increasing their revenue and profit - Accounting
At this stage, Saf and Mel have a much clearer picture of what they’re looking for. Next comes a new challenge—picking the ERP software that will become the backbone of their business. The modules you choose to implement becomes the largest deciding factor of what ERP software you should go with. Not all businesses need every type of module provided by an ERP, and not all ERP software provides the modules required by a business. There’s a diversity in the needs of businesses, and that requires different software.
Streamline their production for quicker deliveries.
Focus on increasing their revenue and profit.
With these goals in mind, Spindl must now find the right software to build their system.
Setting tangible goals for your implementation is one of the biggest initial challenges. For you to get started, you must reflect on what exactly you want out of an ERP. Prioritize what problems need to be addressed first. Use that to derive which parts of your business need to be implemented first within your ERP. During this process, remember that a finished product doesn’t start as being good—it is built to be that way over time. Bob Ross doesn’t start his paintings by adding the trees, mountains, and birds. A positive attitude and acrylic gesso come first, and then the background, followed by the color-blocking. The finishing touch lies in the details.
Based on this information, they plan out their goals:
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Conducting thorough trials
“Discovering the unexpected is more important than confirming the known.” - George E.P. Box (Statistician) _After evaluations, costs, and assessments of various ERP software providers, Saf and Mel know which one they’re leaning towards. But the only way to really know how something works is to, well, _use it. It’s going to be a bit of a challenge, Saf explains to the various teams, but a necessary one. For the next month, they must all document all their processes parallely with the ERP software. Every transaction—be it a sales order, or purchase order, or reimbursements for the company dinner bill—needs to be entered into the system along with their usual process. Trialing software is paramount—no matter how prepared a business is with their research. Before you start managing your operations in any ERP software, you must first familiarize yourself with the system and its many nuances. For this, a Test Phase is necessary.
While conducting trials for ERP software, we recommend a few things:
Treat it as you would a live system. Use it alongside your existing system, but replicate_ every process_ in your ERP system. Be diligent in following the processes, because it’s the only way of knowing if your system will be foolproof once it’s live.
Read the support documentation/manual. Boring, maybe, but incredibly useful in understanding the specific nature of the ERP you’re planning on implementing.
Have your entire team on board. Whoever will be using the live ERP system, make sure they all are using the system.
Use realistic data within the system. These records should be representative of your business’ day-to-day transactions.
Take notes. Is there a process you’re used to doing a certain way that you can’t in your ERP system? Does anything break if you try to do something? What can be more efficient? Is this process actually making your job easier?
Communicate constantly with your Project Champion (or ERP implementer). Talk about your notes, any difficulties or bugs that you encounter with them, or anything that you deem necessary. This will help them (and therefore, your business) have the possible system by the end of testing.
Is customization required or does it work for you as-is? This is important to consider especially if you work in a specialized industry. Does the software allow you to do everything you need to the way it is designed, or does it need to be customized? Can you divert resources towards said customization? Is there an alternative (that meets the other requirements as well)?
Does it accommodate localized nuances? Depending on where you live, there are different laws and conventions for taxes, payments, processes, legalities, etc. Does the software allow you to follow these localized conventions with ease?
Give it time. Do not try to rush through the Test Phase! This is the time to familiarize yourself with everything and make sure everything works the way your business needs it.
Does it support integration with any essential services you use? If not, is customization an option? Take stock of what services are essential to your business’ functioning, and if it can interact with your ERP. This way, you’ll be reducing clutter and redundancy in the work processes.
Give it time. Do not try to rush through the Test Phase! This is the time to familiarize yourself with everything and make sure everything works the way your business needs it.
No system will be perfect from the get-go. And that is _precisely _why the Test Phase (or the “staging” phase) is important. It is where you’ll (inevitably) break the system, get frustrated, learn, and reiterate. By the time you’re in the Live Phase (or the “production” phase), you want to have a smooth and functional system.
Streamline their production for quicker deliveries - Manufacturing Management
Focus on increasing their revenue and profit - Accounting
At this stage, Saf and Mel have a much clearer picture of what they’re looking for. Next comes a new challenge—picking the ERP software that will become the backbone of their business. The modules you choose to implement becomes the largest deciding factor of what ERP software you should go with. Not all businesses need every type of module provided by an ERP, and not all ERP software provides the modules required by a business. There’s a diversity in the needs of businesses, and that requires different software.
Streamline their production for quicker deliveries.
Focus on increasing their revenue and profit.
With these goals in mind, Spindl must now find the right software to build their system.
Setting tangible goals for your implementation is one of the biggest initial challenges. For you to get started, you must reflect on what exactly you want out of an ERP. Prioritize what problems need to be addressed first. Use that to derive which parts of your business need to be implemented first within your ERP. During this process, remember that a finished product doesn’t start as being good—it is built to be that way over time. Bob Ross doesn’t start his paintings by adding the trees, mountains, and birds. A positive attitude and acrylic gesso come first, and then the background, followed by the color-blocking. The finishing touch lies in the details.
Based on this information, they plan out their goals:
With an ERP assisting your business management, you start spending a significantly less amount of time slogging away. You’re eliminating factors like manual maintenance, data duplication, communication difficulties, and a lot more when using it. When you’re not spending time updating every single spreadsheet, you can invest it in growing your company.
Cue: an ERP!
It consolidates all your business operations in a single, central monolithic application.
This allows you to view, analyze, and manage all your business operations from one place. No jumping from app to spreadsheet to another app to make sure one job gets done. All data that you enter into an ERP speaks to the other—if you’ve just made a sale, you can use that information directly within the system to update your inventory as well. With an ERP, you can:
Focus on innovation and profitability.
Drastically improve employee productivity.
Avoid the slog of redundant work.
Have everyone on the same page. The data updates for every single user in the system, so there are no discrepancies.
*Maintain track of things and remain transparent. *A full history of all processes, available at all times.
You can now set the pigeons free! That said, an ERP is a tool for_ _a business to utilize. It’s only as efficient as its users make it.
An ERP can
1.1. Manage all your business processes in one system
1.2. Visualize your business’ data and records
1.3. Manage all your business processes in one system
1.4. What an ERP will help you accomplish
An ERP cannot
2.1. Automagically enter accurate information for you
Give you insights in plain language (that’s for you to figure out)
2.2. Send them chocolates on their birthday (but it can remind you to)
An ERP cannot
Support for customers
Managing the website
Continue to next chapter