Abak or ERP?

The ERP:  An Essential Management Solution

ERP solutions (Enterprise Resource Planning) are now an indispensable tool in the organization of a company. Ensuring the pragmatic management of internal processes, the ERP system contributes greatly to increase the profitability and productivity of the enterprise.  The ERP offers many features and positions itself as a centralizing element; a communication link between different software (CRM, payroll, accounting, etc…) and thus eliminates data redundancy, multiple data entry and errors or inconsistencies between different management systems in place within the company.

The Other Side of The Coin

The process of choosing a solution, its gradual implementation of the solution, testing, and customization have an impact within the company, both in terms of personnel and processes. The time required for the solution to be fully operational alone represents a significant challenge for the company, especially for small business.

Alongside these considerations, there is the financial component, not a negligible element. ERP systems are generally expensive. The introduction of an ERP system, in addition to its price, generates significant associated costs:

  • Time to choose the solution
  • Time and effort for implementation
  • Customization costs
  • Test phase costs
  • Training costs
  • IT infrastructure costs

While many companies are fully satisfied with their ERP system, others, however, find themselves ‘stuck’ in a lengthy and costly implementation process. In some cases, company leaders must face the facts: the implementation of the solution is a failure, and a waste of time and money.

The implementation of an ERP system is not only the installation of an IT solution. Whatever the chosen solution, a constant challenge is time. Business leaders must indeed be patient and plan the implementation of its ERP over several months before it is fully operational, sometimes after multiple adjustments.

Don’t miss the second part of the series: are there alternatives to ERP systems for small business?

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