Frappe
ERPNext
Modules
ERP Guide
Chapter 4
Picking the ERP implementation methodology
industry
Chapter 4: Implementing an ERP software
Why use an ERP?
When bringing about change, the process often looks a bit like this:
Assess for change- > Prepare for change -> Plan for change -> Implement the change -> Sustain the change So far, we’ve been dealing with theoretical knowledge. We’ve assessed why we need the change, we’ve prepared and planned for it. The next step is implementing the change—in this case, the ERP. And it begins with understanding what will make the change successful and positively impact the business.
Going forward, we’re putting the knowledge we’ve gained so far down to actionable uses. This is the part of the process where all the research and prep come together to create and configure your desired ERP system.
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.
In favor of Agile implementation
There are various Project Management methodologies. Two that are easily recognized are the Agile Methodology and Waterfall Methodology. There is a significant difference in how these two methodologies approach things.
The Waterfall Methodology is a linear, sequential model. The project work is broken down into phases, and each one starts after the previous one ends. All the requirements are gathered first, the strategy is shared, approvals received, development initiates and goes into multiple user acceptance testing rounds, master data is collected, then the implementation (finally) begins. A significant amount of time is also spent in documenting the business requirements, understanding them, gap analysis, etc.
On the other hand, in Agile, the implementation happens continuously using standard features of a software. As and when you (the business implementing the ERP) make the data available, it’s mapped into the respective module. Agile implementation follows an iterative model, which focuses on continuous improvement at every single stage.
Cross-functional teams.
Sprint-based, incremental implementation cycles.
Communication and transparency facilitated by scrum ceremonies and KPIs (more on that later!).
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
How badly do you need it?
Urgency can be a catalyst or a detriment to any project. It comes down to the business to make sure it’s the former. We’ve already discussed the scope of an ERP, but each cog in a functional machine needs to be fitted individually. So ask yourself, how urgent is this project? What exactly is your business struggling to manage currently?
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
What do you hope to accomplish with it?
The team behind Spindl has an all-hands meeting and they list out the key reasons for their delays. They are:
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.
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
Evaluating modules
ERP software is generally modular. What this means is, every process of a business is broken down and separated into modules. Each of these modules has its specific workflow that allows you to carry out that process in a streamlined fashion. Accounting, sales management, purchase management, manufacturing, customer relationship management (CRM), human resource management (HRM), etc. are all different processes that function under separate modules. Sales management, for example, comprises the entire process of sales operations. So, an ERP module for sales management would enable a user to follow a specific workflow to optimize their business' selling process. It might look something like this:
Quotation -> Sales Order -> Delivery Note -> Sales Invoice -> Delivery Trip -> Payment Entry
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
Considering cost
With their preliminary research conducted, Noma begins the process of researching various ERP software providers out there. Having figured out what modules they require, Saf and Mel begin evaluating the costs of implementation for their 30 users in their short-listed systems.
Due to the sheer amount of options out there, they turn to resources like Capterra and G2 to achieve this without being overwhelmed. Capterra and G2 have a plethora of software reviews, buying guides, and aggregated lists based on user input that Sad and Mel find insightful during this process.
An ERP is a business-critical tool, and it should be accessible to everyone. But most cloud-based software is expensive. But here’s the thing. Not all software is built (and/or priced) equally. Plus, there’s a ton of options to choose from! Most ERP software providers have a pay-per-user, module-based pricing system. Along with these costs, businesses often turn to ‘partners’, who act as consultants and implementers for their chosen ERP software. But not everyone has thousands of dollars to spare, and we get it. Thanks to open-source alternatives[1], you can turn to free ERP systems that are just as good (if not better!). Microsoft Dynamics 365, for example, prices their proprietary (closed-source) ERP product based on the business area, business scope (professional or enterprise) at a per-user cost. Odoo, which has an “open-core” (i.e. its most basic modules are free and open-source), charges on a modular basis at a per-user cost as well, along with separate charges for hosting, support, etc. Then there’s ERPNext, an entirely free and open-source, community-driven ERP software.
At the end of the day, it comes down to your business’ individual needs and how you can best serve it. Expensive does not always mean better. It’s a matter of what will help you accomplish your business’ goals.
It can be a daunting process to find the right fit for you. This is why we recommend using resources such as Capterra and G2 to look at reviews and compare pricing while you’re doing your research.
[1] If you’re unfamiliar with open-source work, it’s simple: the source code (aka what makes the software work) is openly available to everyone to use and modify. Communities from across the world contribute to the code, which is how the product grows. Open-source is built on one single, incredible belief: information and resources should be freely available. Many companies use open-source software to develop and support their projects, including big guys like Netflix and Amazon.
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
Assessing your chosen ERP
_“It’s not about making the right choice. It’s about making a choice, and making it right.” _
- J.R. Rim (Author, Blogger)
After much deliberation and budgeting, Spindl has narrowed down to a few options of ERP software providers. Now, it’s a matter of picking one software that they’ll begin their trials with. This is a pivotal stage in our protagonists’ journey: which ERP will they finally go with? And how exactly will they decide that?
Picking the right ERP software is a meticulous process. It’s supposed to be the foundation of your business after all. It’s akin to making any other long-term investment! Like buying a house or picking the right school for your kids.
When evaluating an ERP, there are certain conditions it should meet for it to serve your purpose.
Is it solving our problems? Revisit goals that you set out with. Does the ERP software help you meet all of them, or will you (once again) have to fall back on other services?
Can it accommodate your foreseeable plans? As your business grows, so will its needs. You cannot foresee everything, yes, but evaluate if the ERP will be able to accommodate your future plans for your company. \ For example, the folks at Spindl know they will need a better system for their Human Resources department because of their growing company. They, therefore, make sure that the ERP they choose will have an HR Management Module they can implement later.
Is the monetary investment worth it for your business? Chart out the budget of your ERPimplementation and maintenance. Evaluate how much you are spending on it, and how much you will need to spend on it in the future (account for growth in the number of users, additional modules, support). Are you happy investing that money?
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?
Does the User Experience positively affect work progress? The point of an ERP is to save time and not waste it. It may sound inconsequential, but even the number of clicks it takes to get a job done counts in the long run! Are things overcomplicated, or efficient? Will it help you do things faster?
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.
Spindl sells on the Amazon Marketplace, so it’s important to them that their ERP system can integrate with Amazon’s MWS (Marketplace Web Service).
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
Ask yourself these questions before getting an ERP…
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
In favor of Agile implementation
Figure 4. Waterfall vs. Agile implementations
Most ERP projects are undertaken using the Waterfall approach, but there is a significant issue with that. ERP systems cover a vast and integrated scope and thus have many complexities that need to be considered. Often, not everything comes up at the beginning. Even before the implementation commences, requirements cannot be accurately predicted. It’s a very real possibility that the current system did not include certain required features. Requirements always evolve over time. When the Waterfall model is used, the implementation must often come to a halt to allow for these changes to be addressed, and decisions to take place. This causes implementations to drag on for many months, since it involves long phases of design, specifications, blueprinting, etc. Obviously, not ideal.
This is why we think an Agile implementation is the better way to go for any ERP implementation.
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
How badly do you need it?
Urgency can be a catalyst or a detriment to any project. It comes down to the business to make sure it’s the former. We’ve already discussed the scope of an ERP, but each cog in a functional machine needs to be fitted individually. So ask yourself, how urgent is this project? What exactly is your business struggling to manage currently?
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
Evaluating modules
ERP software is generally modular. What this means is, every process of a business is broken down and separated into modules. Each of these modules has its specific workflow that allows you to carry out that process in a streamlined fashion. Accounting, sales management, purchase management, manufacturing, customer relationship management (CRM), human resource management (HRM), etc. are all different processes that function under separate modules. Sales management, for example, comprises the entire process of sales operations. So, an ERP module for sales management would enable a user to follow a specific workflow to optimize their business' selling process. It might look something like this:
Quotation -> Sales Order -> Delivery Note -> Sales Invoice -> Delivery Trip -> Payment Entry
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
Considering cost
With their preliminary research conducted, Noma begins the process of researching various ERP software providers out there. Having figured out what modules they require, Saf and Mel begin evaluating the costs of implementation for their 30 users in their short-listed systems.
Due to the sheer amount of options out there, they turn to resources like Capterra and G2 to achieve this without being overwhelmed. Capterra and G2 have a plethora of software reviews, buying guides, and aggregated lists based on user input that Sad and Mel find insightful during this process.
An ERP is a business-critical tool, and it should be accessible to everyone. But most cloud-based software is expensive. But here’s the thing. Not all software is built (and/or priced) equally. Plus, there’s a ton of options to choose from! Most ERP software providers have a pay-per-user, module-based pricing system. Along with these costs, businesses often turn to ‘partners’, who act as consultants and implementers for their chosen ERP software. But not everyone has thousands of dollars to spare, and we get it. Thanks to open-source alternatives[1], you can turn to free ERP systems that are just as good (if not better!). Microsoft Dynamics 365, for example, prices their proprietary (closed-source) ERP product based on the business area, business scope (professional or enterprise) at a per-user cost. Odoo, which has an “open-core” (i.e. its most basic modules are free and open-source), charges on a modular basis at a per-user cost as well, along with separate charges for hosting, support, etc. Then there’s ERPNext, an entirely free and open-source, community-driven ERP software.
At the end of the day, it comes down to your business’ individual needs and how you can best serve it. Expensive does not always mean better. It’s a matter of what will help you accomplish your business’ goals.
It can be a daunting process to find the right fit for you. This is why we recommend using resources such as Capterra and G2 to look at reviews and compare pricing while you’re doing your research.
[1] If you’re unfamiliar with open-source work, it’s simple: the source code (aka what makes the software work) is openly available to everyone to use and modify. Communities from across the world contribute to the code, which is how the product grows. Open-source is built on one single, incredible belief: information and resources should be freely available. Many companies use open-source software to develop and support their projects, including big guys like Netflix and Amazon.
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
Assessing your chosen ERP
_“It’s not about making the right choice. It’s about making a choice, and making it right.” _
- J.R. Rim (Author, Blogger)
After much deliberation and budgeting, Spindl has narrowed down to a few options of ERP software providers. Now, it’s a matter of picking one software that they’ll begin their trials with. This is a pivotal stage in our protagonists’ journey: which ERP will they finally go with? And how exactly will they decide that?
Picking the right ERP software is a meticulous process. It’s supposed to be the foundation of your business after all. It’s akin to making any other long-term investment! Like buying a house or picking the right school for your kids.
When evaluating an ERP, there are certain conditions it should meet for it to serve your purpose.
Is it solving our problems? Revisit goals that you set out with. Does the ERP software help you meet all of them, or will you (once again) have to fall back on other services?
Can it accommodate your foreseeable plans? As your business grows, so will its needs. You cannot foresee everything, yes, but evaluate if the ERP will be able to accommodate your future plans for your company. \ For example, the folks at Spindl know they will need a better system for their Human Resources department because of their growing company. They, therefore, make sure that the ERP they choose will have an HR Management Module they can implement later.
Is the monetary investment worth it for your business? Chart out the budget of your ERPimplementation and maintenance. Evaluate how much you are spending on it, and how much you will need to spend on it in the future (account for growth in the number of users, additional modules, support). Are you happy investing that money?
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?
Does the User Experience positively affect work progress? The point of an ERP is to save time and not waste it. It may sound inconsequential, but even the number of clicks it takes to get a job done counts in the long run! Are things overcomplicated, or efficient? Will it help you do things faster?
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.
Spindl sells on the Amazon Marketplace, so it’s important to them that their ERP system can integrate with Amazon’s MWS (Marketplace Web Service).
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
First, some Agile myth-busting
The myth that the Agile ideology cannot be applied to an ERP due to its sheer scope is based on several damaging misconceptions: an ERP implementation is too big to be managed by small Agile teams; the highly integrated ERP requirements cannot be broken down into vertical user-stories; development and testing cannot be done in the short “sprints” that are characteristic of the Agile model; the Agile method, which is used for constantly shifting, unknown requirements, cannot be used for a standardized software such as an ERP; the only way to perceive the value of an ERP is through using a fully built and integrated product, not incremental changes—you get the idea. Truth be told, Agile practices are a great way to mitigate the risks and challenges that plague ERP implementations.
Firstly, unlike the Waterfall model, Agile relies heavily on the constant presence and input of the business. It requires the implementers and business representatives to work together as a single, end-to-end team that’s focusing on using the same set of key performance indicators (KPIs). Successful implementation relies heavily on communication, which is made possible through this. It fosters a collaborative relationship.
It also works at a much faster pace. Agile replaces long, drawn-out planning phases with short sprints. This does not translate to a lack of planning. Rather, it aids the Project Champion to track outcomes, progress, and any challenges or bottlenecks that the implementation is facing. Agile helps break down the immense scope of an ERP into smaller feature-and-module based sprints, making it much more achievable for small teams to deliver. This also allows for an iterative process and highlights the value the ERP will bring to the business. To summarize, these are some of Agile’s key features that can be invaluable tools for implementing an ERP:
Cross-functional teams.
Sprint-based, incremental implementation cycles.
Communication and transparency facilitated by scrum ceremonies and KPIs (more on that later!).
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
How badly do you need it?
Urgency can be a catalyst or a detriment to any project. It comes down to the business to make sure it’s the former. We’ve already discussed the scope of an ERP, but each cog in a functional machine needs to be fitted individually. So ask yourself, how urgent is this project? What exactly is your business struggling to manage currently?
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
What do you hope to accomplish with it?
The team behind Spindl has an all-hands meeting and they list out the key reasons for their delays. They are:
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.
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
Evaluating modules
ERP software is generally modular. What this means is, every process of a business is broken down and separated into modules. Each of these modules has its specific workflow that allows you to carry out that process in a streamlined fashion. Accounting, sales management, purchase management, manufacturing, customer relationship management (CRM), human resource management (HRM), etc. are all different processes that function under separate modules. Sales management, for example, comprises the entire process of sales operations. So, an ERP module for sales management would enable a user to follow a specific workflow to optimize their business' selling process. It might look something like this:
Quotation -> Sales Order -> Delivery Note -> Sales Invoice -> Delivery Trip -> Payment Entry
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
Considering cost
With their preliminary research conducted, Noma begins the process of researching various ERP software providers out there. Having figured out what modules they require, Saf and Mel begin evaluating the costs of implementation for their 30 users in their short-listed systems.
Due to the sheer amount of options out there, they turn to resources like Capterra and G2 to achieve this without being overwhelmed. Capterra and G2 have a plethora of software reviews, buying guides, and aggregated lists based on user input that Sad and Mel find insightful during this process.
An ERP is a business-critical tool, and it should be accessible to everyone. But most cloud-based software is expensive. But here’s the thing. Not all software is built (and/or priced) equally. Plus, there’s a ton of options to choose from! Most ERP software providers have a pay-per-user, module-based pricing system. Along with these costs, businesses often turn to ‘partners’, who act as consultants and implementers for their chosen ERP software. But not everyone has thousands of dollars to spare, and we get it. Thanks to open-source alternatives[1], you can turn to free ERP systems that are just as good (if not better!). Microsoft Dynamics 365, for example, prices their proprietary (closed-source) ERP product based on the business area, business scope (professional or enterprise) at a per-user cost. Odoo, which has an “open-core” (i.e. its most basic modules are free and open-source), charges on a modular basis at a per-user cost as well, along with separate charges for hosting, support, etc. Then there’s ERPNext, an entirely free and open-source, community-driven ERP software.
At the end of the day, it comes down to your business’ individual needs and how you can best serve it. Expensive does not always mean better. It’s a matter of what will help you accomplish your business’ goals.
It can be a daunting process to find the right fit for you. This is why we recommend using resources such as Capterra and G2 to look at reviews and compare pricing while you’re doing your research.
[1] If you’re unfamiliar with open-source work, it’s simple: the source code (aka what makes the software work) is openly available to everyone to use and modify. Communities from across the world contribute to the code, which is how the product grows. Open-source is built on one single, incredible belief: information and resources should be freely available. Many companies use open-source software to develop and support their projects, including big guys like Netflix and Amazon.
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
Assessing your chosen ERP
_“It’s not about making the right choice. It’s about making a choice, and making it right.” _
- J.R. Rim (Author, Blogger)
After much deliberation and budgeting, Spindl has narrowed down to a few options of ERP software providers. Now, it’s a matter of picking one software that they’ll begin their trials with. This is a pivotal stage in our protagonists’ journey: which ERP will they finally go with? And how exactly will they decide that?
Picking the right ERP software is a meticulous process. It’s supposed to be the foundation of your business after all. It’s akin to making any other long-term investment! Like buying a house or picking the right school for your kids.
When evaluating an ERP, there are certain conditions it should meet for it to serve your purpose.
Is it solving our problems? Revisit goals that you set out with. Does the ERP software help you meet all of them, or will you (once again) have to fall back on other services?
Can it accommodate your foreseeable plans? As your business grows, so will its needs. You cannot foresee everything, yes, but evaluate if the ERP will be able to accommodate your future plans for your company. \ For example, the folks at Spindl know they will need a better system for their Human Resources department because of their growing company. They, therefore, make sure that the ERP they choose will have an HR Management Module they can implement later.
Is the monetary investment worth it for your business? Chart out the budget of your ERPimplementation and maintenance. Evaluate how much you are spending on it, and how much you will need to spend on it in the future (account for growth in the number of users, additional modules, support). Are you happy investing that money?
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?
Does the User Experience positively affect work progress? The point of an ERP is to save time and not waste it. It may sound inconsequential, but even the number of clicks it takes to get a job done counts in the long run! Are things overcomplicated, or efficient? Will it help you do things faster?
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.
Spindl sells on the Amazon Marketplace, so it’s important to them that their ERP system can integrate with Amazon’s MWS (Marketplace Web Service).
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
Ask yourself these questions before getting an ERP…
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
First, some Agile myth-busting
The myth that the Agile ideology cannot be applied to an ERP due to its sheer scope is based on several damaging misconceptions: an ERP implementation is too big to be managed by small Agile teams; the highly integrated ERP requirements cannot be broken down into vertical user-stories; development and testing cannot be done in the short “sprints” that are characteristic of the Agile model; the Agile method, which is used for constantly shifting, unknown requirements, cannot be used for a standardized software such as an ERP; the only way to perceive the value of an ERP is through using a fully built and integrated product, not incremental changes—you get the idea. Truth be told, Agile practices are a great way to mitigate the risks and challenges that plague ERP implementations.
Firstly, unlike the Waterfall model, Agile relies heavily on the constant presence and input of the business. It requires the implementers and business representatives to work together as a single, end-to-end team that’s focusing on using the same set of key performance indicators (KPIs). Successful implementation relies heavily on communication, which is made possible through this. It fosters a collaborative relationship.
It also works at a much faster pace. Agile replaces long, drawn-out planning phases with short sprints. This does not translate to a lack of planning. Rather, it aids the Project Champion to track outcomes, progress, and any challenges or bottlenecks that the implementation is facing. Agile helps break down the immense scope of an ERP into smaller feature-and-module based sprints, making it much more achievable for small teams to deliver. This also allows for an iterative process and highlights the value the ERP will bring to the business. To summarize, these are some of Agile’s key features that can be invaluable tools for implementing an ERP:
It also works at a much faster pace. Agile replaces long, drawn-out planning phases with short sprints. This does not translate to a lack of planning. Rather, it aids the Project Champion to track outcomes, progress, and any challenges or bottlenecks that the implementation is facing. Agile helps break down the immense scope of an ERP into smaller feature-and-module based sprints, making it much more achievable for small teams to deliver. This also allows for an iterative process and highlights the value the ERP will bring to the business. To summarize, these are some of Agile’s key features that can be invaluable tools for implementing an ERP:
It also works at a much faster pace. Agile replaces long, drawn-out planning phases with short sprints. This does not translate to a lack of planning. Rather, it aids the Project Champion to track outcomes, progress, and any challenges or bottlenecks that the implementation is facing. Agile helps break down the immense scope of an ERP into smaller feature-and-module based sprints, making it much more achievable for small teams to deliver. This also allows for an iterative process and highlights the value the ERP will bring to the business. To summarize, these are some of Agile’s key features that can be invaluable tools for implementing an ERP:
It also works at a much faster pace. Agile replaces long, drawn-out planning phases with short sprints. This does not translate to a lack of planning. Rather, it aids the Project Champion to track outcomes, progress, and any challenges or bottlenecks that the implementation is facing. Agile helps break down the immense scope of an ERP into smaller feature-and-module based sprints, making it much more achievable for small teams to deliver. This also allows for an iterative process and highlights the value the ERP will bring to the business. To summarize, these are some of Agile’s key features that can be invaluable tools for implementing an ERP:
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
How badly do you need it?
Urgency can be a catalyst or a detriment to any project. It comes down to the business to make sure it’s the former. We’ve already discussed the scope of an ERP, but each cog in a functional machine needs to be fitted individually. So ask yourself, how urgent is this project? What exactly is your business struggling to manage currently?
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
What do you hope to accomplish with it?
The team behind Spindl has an all-hands meeting and they list out the key reasons for their delays. They are:
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.
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
Evaluating modules
ERP software is generally modular. What this means is, every process of a business is broken down and separated into modules. Each of these modules has its specific workflow that allows you to carry out that process in a streamlined fashion. Accounting, sales management, purchase management, manufacturing, customer relationship management (CRM), human resource management (HRM), etc. are all different processes that function under separate modules. Sales management, for example, comprises the entire process of sales operations. So, an ERP module for sales management would enable a user to follow a specific workflow to optimize their business' selling process. It might look something like this:
Quotation -> Sales Order -> Delivery Note -> Sales Invoice -> Delivery Trip -> Payment Entry
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
Considering cost
With their preliminary research conducted, Noma begins the process of researching various ERP software providers out there. Having figured out what modules they require, Saf and Mel begin evaluating the costs of implementation for their 30 users in their short-listed systems.
Due to the sheer amount of options out there, they turn to resources like Capterra and G2 to achieve this without being overwhelmed. Capterra and G2 have a plethora of software reviews, buying guides, and aggregated lists based on user input that Sad and Mel find insightful during this process.
An ERP is a business-critical tool, and it should be accessible to everyone. But most cloud-based software is expensive. But here’s the thing. Not all software is built (and/or priced) equally. Plus, there’s a ton of options to choose from! Most ERP software providers have a pay-per-user, module-based pricing system. Along with these costs, businesses often turn to ‘partners’, who act as consultants and implementers for their chosen ERP software. But not everyone has thousands of dollars to spare, and we get it. Thanks to open-source alternatives[1], you can turn to free ERP systems that are just as good (if not better!). Microsoft Dynamics 365, for example, prices their proprietary (closed-source) ERP product based on the business area, business scope (professional or enterprise) at a per-user cost. Odoo, which has an “open-core” (i.e. its most basic modules are free and open-source), charges on a modular basis at a per-user cost as well, along with separate charges for hosting, support, etc. Then there’s ERPNext, an entirely free and open-source, community-driven ERP software.
At the end of the day, it comes down to your business’ individual needs and how you can best serve it. Expensive does not always mean better. It’s a matter of what will help you accomplish your business’ goals.
It can be a daunting process to find the right fit for you. This is why we recommend using resources such as Capterra and G2 to look at reviews and compare pricing while you’re doing your research.
[1] If you’re unfamiliar with open-source work, it’s simple: the source code (aka what makes the software work) is openly available to everyone to use and modify. Communities from across the world contribute to the code, which is how the product grows. Open-source is built on one single, incredible belief: information and resources should be freely available. Many companies use open-source software to develop and support their projects, including big guys like Netflix and Amazon.
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
Assessing your chosen ERP
_“It’s not about making the right choice. It’s about making a choice, and making it right.” _
- J.R. Rim (Author, Blogger)
After much deliberation and budgeting, Spindl has narrowed down to a few options of ERP software providers. Now, it’s a matter of picking one software that they’ll begin their trials with. This is a pivotal stage in our protagonists’ journey: which ERP will they finally go with? And how exactly will they decide that?
Picking the right ERP software is a meticulous process. It’s supposed to be the foundation of your business after all. It’s akin to making any other long-term investment! Like buying a house or picking the right school for your kids.
When evaluating an ERP, there are certain conditions it should meet for it to serve your purpose.
Is it solving our problems? Revisit goals that you set out with. Does the ERP software help you meet all of them, or will you (once again) have to fall back on other services?
Can it accommodate your foreseeable plans? As your business grows, so will its needs. You cannot foresee everything, yes, but evaluate if the ERP will be able to accommodate your future plans for your company. \ For example, the folks at Spindl know they will need a better system for their Human Resources department because of their growing company. They, therefore, make sure that the ERP they choose will have an HR Management Module they can implement later.
Is the monetary investment worth it for your business? Chart out the budget of your ERPimplementation and maintenance. Evaluate how much you are spending on it, and how much you will need to spend on it in the future (account for growth in the number of users, additional modules, support). Are you happy investing that money?
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?
Does the User Experience positively affect work progress? The point of an ERP is to save time and not waste it. It may sound inconsequential, but even the number of clicks it takes to get a job done counts in the long run! Are things overcomplicated, or efficient? Will it help you do things faster?
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.
Spindl sells on the Amazon Marketplace, so it’s important to them that their ERP system can integrate with Amazon’s MWS (Marketplace Web Service).
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
Ask yourself these questions before getting an ERP…
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
In favor of Agile implementation
Figure 4. Waterfall vs. Agile implementations
Most ERP projects are undertaken using the Waterfall approach, but there is a significant issue with that. ERP systems cover a vast and integrated scope and thus have many complexities that need to be considered. Often, not everything comes up at the beginning. Even before the implementation commences, requirements cannot be accurately predicted. It’s a very real possibility that the current system did not include certain required features. Requirements always evolve over time. When the Waterfall model is used, the implementation must often come to a halt to allow for these changes to be addressed, and decisions to take place. This causes implementations to drag on for many months, since it involves long phases of design, specifications, blueprinting, etc. Obviously, not ideal.
This is why we think an Agile implementation is the better way to go for any ERP implementation.
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
How badly do you need it?
Urgency can be a catalyst or a detriment to any project. It comes down to the business to make sure it’s the former. We’ve already discussed the scope of an ERP, but each cog in a functional machine needs to be fitted individually. So ask yourself, how urgent is this project? What exactly is your business struggling to manage currently?
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
What do you hope to accomplish with it?
The team behind Spindl has an all-hands meeting and they list out the key reasons for their delays. They are:
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.
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
Evaluating modules
ERP software is generally modular. What this means is, every process of a business is broken down and separated into modules. Each of these modules has its specific workflow that allows you to carry out that process in a streamlined fashion. Accounting, sales management, purchase management, manufacturing, customer relationship management (CRM), human resource management (HRM), etc. are all different processes that function under separate modules. Sales management, for example, comprises the entire process of sales operations. So, an ERP module for sales management would enable a user to follow a specific workflow to optimize their business' selling process. It might look something like this:
Quotation -> Sales Order -> Delivery Note -> Sales Invoice -> Delivery Trip -> Payment Entry
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
Considering cost
With their preliminary research conducted, Noma begins the process of researching various ERP software providers out there. Having figured out what modules they require, Saf and Mel begin evaluating the costs of implementation for their 30 users in their short-listed systems.
Due to the sheer amount of options out there, they turn to resources like Capterra and G2 to achieve this without being overwhelmed. Capterra and G2 have a plethora of software reviews, buying guides, and aggregated lists based on user input that Sad and Mel find insightful during this process.
An ERP is a business-critical tool, and it should be accessible to everyone. But most cloud-based software is expensive. But here’s the thing. Not all software is built (and/or priced) equally. Plus, there’s a ton of options to choose from! Most ERP software providers have a pay-per-user, module-based pricing system. Along with these costs, businesses often turn to ‘partners’, who act as consultants and implementers for their chosen ERP software. But not everyone has thousands of dollars to spare, and we get it. Thanks to open-source alternatives[1], you can turn to free ERP systems that are just as good (if not better!). Microsoft Dynamics 365, for example, prices their proprietary (closed-source) ERP product based on the business area, business scope (professional or enterprise) at a per-user cost. Odoo, which has an “open-core” (i.e. its most basic modules are free and open-source), charges on a modular basis at a per-user cost as well, along with separate charges for hosting, support, etc. Then there’s ERPNext, an entirely free and open-source, community-driven ERP software.
At the end of the day, it comes down to your business’ individual needs and how you can best serve it. Expensive does not always mean better. It’s a matter of what will help you accomplish your business’ goals.
It can be a daunting process to find the right fit for you. This is why we recommend using resources such as Capterra and G2 to look at reviews and compare pricing while you’re doing your research.
[1] If you’re unfamiliar with open-source work, it’s simple: the source code (aka what makes the software work) is openly available to everyone to use and modify. Communities from across the world contribute to the code, which is how the product grows. Open-source is built on one single, incredible belief: information and resources should be freely available. Many companies use open-source software to develop and support their projects, including big guys like Netflix and Amazon.
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
Assessing your chosen ERP
_“It’s not about making the right choice. It’s about making a choice, and making it right.” _
- J.R. Rim (Author, Blogger)
After much deliberation and budgeting, Spindl has narrowed down to a few options of ERP software providers. Now, it’s a matter of picking one software that they’ll begin their trials with. This is a pivotal stage in our protagonists’ journey: which ERP will they finally go with? And how exactly will they decide that?
Picking the right ERP software is a meticulous process. It’s supposed to be the foundation of your business after all. It’s akin to making any other long-term investment! Like buying a house or picking the right school for your kids.
When evaluating an ERP, there are certain conditions it should meet for it to serve your purpose.
Is it solving our problems? Revisit goals that you set out with. Does the ERP software help you meet all of them, or will you (once again) have to fall back on other services?
Can it accommodate your foreseeable plans? As your business grows, so will its needs. You cannot foresee everything, yes, but evaluate if the ERP will be able to accommodate your future plans for your company. \ For example, the folks at Spindl know they will need a better system for their Human Resources department because of their growing company. They, therefore, make sure that the ERP they choose will have an HR Management Module they can implement later.
Is the monetary investment worth it for your business? Chart out the budget of your ERPimplementation and maintenance. Evaluate how much you are spending on it, and how much you will need to spend on it in the future (account for growth in the number of users, additional modules, support). Are you happy investing that money?
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?
Does the User Experience positively affect work progress? The point of an ERP is to save time and not waste it. It may sound inconsequential, but even the number of clicks it takes to get a job done counts in the long run! Are things overcomplicated, or efficient? Will it help you do things faster?
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.
Spindl sells on the Amazon Marketplace, so it’s important to them that their ERP system can integrate with Amazon’s MWS (Marketplace Web Service).
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