How Was ERP Created?

ERP is a term that has been around since the early to late 1990s. Throughout the years this business solution has adapted and progressed to provide actionable business solutions for small to medium business owners and large corporations alike. There has been a steady progression of the evolution of ERP systems, which stands for Enterprise Resource Planning.

Diving Deeper Into the 1990s

Business industry analysts created the term ERP to describe a new concept in business planning services that entails the integration of information for company transactions to be turned into actionable tasks throughout all the departments within an organization.

This system allowed for multiple departments, or all departments of a business to gain access to transactional information in a format that was relevant to their corresponding departments. For example, if one department recorded a transaction, this information would create a workflow or task for the department handling the next step in fulfilling a sale for a transaction.

Towards the tail end of the ’90s, another system was introduced and quickly gained popularity called a CRM. CRM solutions, also known as “customer relationship management” solutions, were centered around the beginning steps of a sale. This system mainly used by sales departments was an interactive tool that would assist in the documentation of relevant customer information related to potential future transactions.

Sales representatives would track updates on each customer going through the sales process from creating quotes, initiating contracts, and would include exclusive details such as products and pricing. The CRM became a partner to the ERP system. Businesses would use these two systems simultaneously to track the creation and management of key business data.

However, there was one setback, which involved the labor-intensive need to create reports from each system to analyze the business’ overall transactional information from pre-sale to close.

From this point, there was a new need for data warehouses that would take on the sole task of compiling all the data a business amassed each business day, and then generate reports consistently to business owners the following day.

The 2000’s

Fast forward to the early 2000s when again, there was another shift in how ERP was being used and improved. There were two main changes during this time that differentiated the ERP process from its conception and use in the late 1990s.

The first main change was that hardware increased in processing power at a lower cost to the business. And secondly, data integration tools became more advanced in that they allowed for re-usable data integration from one application to another.

This progression in ERP systems during this time resulted in a few milestones. Supply chain data became information that was able to be gathered, displayed, and analyzed simultaneously. ERP vendors were able to double down and hit the ground running with new improvements much faster due to overwhelming acquisitions throughout these years.

Every business owner and organization felt the need to have an ERP integrated into their business model as it showed highly valuable information with less effort than ever before. And finally, this also meant the code used to integrate this system became fully reusable.

Looking Ahead

So, now we know where ERP systems began and why creating this capability for small to medium business owners and larger corporations alike was so highly sought after. This would reduce the time it took to gather key business data that directly reflected how a business was performing saleswise.

While the core functions are still relevant to the ERP systems used today, it is interesting to take a look back to see how ERP began and progressed from the 1990’s to 2000’s. The ability to for ERP software to then become integrate with other business programs like the CRM (customer relationship management) for example, was a milestone in and of itself, but also a stepping stone towards the ability for ERP’s to partner up and work with programs out there.

From providing information on sales, transactions, products, and fulfillment what can we expect to improve a model that seems to have it all figured out? Looking ahead to the massive changes that have happened since the early 2000s will give us a better idea of how remarkable technological advancements can truly be in such a relatively short period of time.

How can the delivery of key business data be improved? What will come after the milestones already reached by this method? Will tasks triggered by the ERP model continue to be worked on by employees or will artificial intelligence come into play? The following paragraphs will go over ERP systems today and how information technology has carved out an even more impressive path to business solutions for business owners.

Changes Happening Today

While we have reviewed how ERP software began with a general overview of how they function. There are additional more technical business functions to go over to give us even more insight on understanding ERP, and how progressions since the early 2000s will be different today.

There will always be, however, solid core business processes supported by ERP software that will remain intact. This includes the tracking of the sales process from the initial order date through to fulfillment and finally receiving payment. This is a given, and will not change.

Another core business function of ERP systems that will transcend time is tracking the availability or inventory of a product and that initial vendors have also distributed payment for their products or services. And finally, ensuring the financial process of a business is recorded in order to generate reports for business owners to analyze data.

Today ERP implementation is incorporating artificial intelligence and automation technologies to assist in the assembly of ERP operations. Cloud ERP implementation has also started in order to create a more sustainable host for all the data flowing from the ERP business processes. This in turn reduces the cost of the constant hardware upgrades and maintenance that were previously required and viewed as a new technology advancement not so long ago.

Industry verticals are becoming more uniform in the way their sales processes are handled. This is because the introduction of highly automated online sales systems has steadily increased in demand by consumers. Potential customers seek to find the easiest, fastest, and least time-consuming alternatives to purchasing goods and services, the internet has allowed for this new wave of sales to happen.

The ERP business process has naturally welcomed this change as it ties in seamlessly to how an ERP system functions. Automation advancements have greatly improved to give consumers the efficiency they are looking for in the buyer process. While this is a great turn in the improvement of technology, there are changes beginning to happen when it comes to certain roles held by employees being replaced with robotics software analytics, for example, chatbots on Facebook, other social media platforms, and business websites.

The more readily available information is for a potential customer, the more likely they are to purchase an item faster. This means tools like chatbots that run through the sales process automatically depending on where the potential customer has landed, have become an increasingly valuable and lower-cost tool than hiring an employee to provide this service.

In addition to this, artificial intelligence, or commonly referred to as AI, will allow for data to analyse at a much more rapid pace than before. Predictive analytics is also a function that AI can produce within little to no time lost. The roles held by analysts previous to AI, who would work on the analysis of key business data are becoming less so as we continue down this path.

Now let’s take a look at the key factors that drive ERP from 2016 to 2019. Initially, in 2016 a driving change in the traditional ERP method was to replace legacy systems, improve business performance, and ensure overall compliance. In 2017, improving business performance was at the top of the list.

As we previously mentioned, faster processes directly reflect a quicker sale. This leads to the second most important factor of ERP in 2017, which was to simplify employee tasks triggered by the ERP process. The quicker an employee can complete a task by automating as much of the sales and fulfillment process is ideal in having a smoothly functioning well-oiled machine.

The ability to integrate multiple systems into the ERP model was also a driving force in the progression of this model today.

What are financial professionals working on now? Firstly financial professionals have begun evaluating new trends that show great promise and high potential success rates in effectively strengthening ERP business solutions.

A major trend is using the cloud. Most ERP providers are hosted within the cloud, and unfortunately, systems that do not conform to this trend, which seems to now be the status quo, will not be able to keep up with the demands in this field. The cloud ERP provides a host of new features like blockchain, AI, Machine learning, intelligent process automation, and IoT.

New capabilities are constantly being worked on for the future success of ERP to reduce errors and increase efficiency exponentially.

How Do You Know if You need an ERP Solution?

If you are a small to medium business owner you might be at the cusp of thinking about implementing ERP software into your business. When you started your business you might not have needed too many programs to keep your operations obligations in working order.

You might have felt like you had everything under control from the beginning of your sales process to fulfillment, and this is common amongst most small to medium business owners. However, if your business has continued to grow, and say you have added a list of new products and services that you did not have before, you might start to find certain areas of your overall business operations becoming cumbersome and downright clunky.

If you are starting to sense that your overall business processes as a whole are no longer running smoothly as they once did, you might want to consider an ERP solution for your business. How can you tell if you need to begin your journey in this new direction?

The telltale sign that you might need to make some changes to your business operations process is if you are using multiple software and programs that do not integrate well together, if at all, and have gaps in coverage of the information.

You might sense that the programs you are using feel like a juggling act where you are not always quite sure how to procure reports that make sense in order to analyze your key business data. Or the programs you are using are completely disconnected and disorganized!

This is a huge pain factor for business owners who are successfully growing their business, and if you think this sounds familiar, you are not alone! This is exactly why the ERP solution was created in the first place!

Another telltale sign is if you are constantly unsure of your total inventory after a holiday rush or a busy month. It might take you hours to run all your checks and balances to determine what your final inventory numbers are, and even then you might still feel uncertain if you have made a mistake.

The most dangerous aspect of running a business without an ERP solution is if a customer purchases a product, and it turns out you do not actually have the product in stock!

Customer demands are at a level where if an efficient system is not set in place, a potential customer can tell and might be discouraged in continuing business with you. It’s important to keep this in mind when considering if it is time for you to switch to an ERP implementation solution for your organization.

Do not feel discouraged as this does not mean you are doing badly, it simply means that your systems work for you! Rather than using twenty different platforms, it is okay to consider a better system that will help you decrease your workload when it comes to keeping the checks and balances of your business.

Why not have an easier way to see final numbers in real-time and have the ability to access easy and fast reporting methods to relay information to your employees. Increasing the visibility of your operations takes the guesswork out of what is coming into the business and what is going out.

ERP software also gives you the capability to automate and auto-populate almost any aspect of your operations. This allows you to avoid the need to enter each piece of information into a spreadsheet where you are not able to transfer data from one place to another easily. Managing spreadsheets like this takes hundreds of man-hours, and can ultimately hinder the success of your business.

Modern ERP also includes an application programming interface. This interface is what allows you to directly speak with your customers via phone or email and provide a paper trail of any information passed back and forth from the business to the customer. You can also view the analytics of the sales of your business, how certain products are performing, and so forth.

You can even connect your bank details to this system so you can provide payment to your vendors with the click of a button. Billing, invoicing and
inventory management all make up your ERP solution. All this information ebbing and flowing from one central hub is how you can manage to get back your time.

Your company’s metrics will completely transform to work for you, not the other way around. These key business metrics will also give you the insight you need to know where, how, and what products to market and to which audiences.

You will have all the information you need on audience demographics when customers are purchasing your products throughout the day or even throughout the year. You will be able to see clear as day which products are performing and selling best, or even which products are performing best during certain times of the year.

This is invaluable in understanding when to market certain products. You will feel certain of which products require marketing campaigns and your paid advertisements won’t be done blind with guesswork. Your paid ads will have purpose and hardcore data to back up why you will be willing to spend more on advertising certain products throughout the year.

Additionally, you will be able to easily discern a clear budget for your marketing campaigns or any other aspect of the operations of your business. This is virtually a seamless, no-hassle way to make quick decisions about the direction of your business in a way that is fully intentional and informed.

Benefits of ERP

So, what is ERP? We have crossed over a great amount of information from the inception of the ERP to now, so in short, ERP in 2019 is now known as this:

ERP allows for your business to manage and integrate financials, supply chain, operations, manufacturing, reporting, and human resource activities throughout businesses. ERP providers today commonly offer clients the upkeep of new changes innovation. The most prominent changes in innovation today are the use of artificial intelligence, machine learning, blockchain, IoT, and much more!

This promise sets ERP companies apart from business owners who understand that technological advances are happening fast, and rather than having to switch to a more technologically in tune ERP company down the line, they will inevitably search for the ERP solution providers that give them the best possible services in the digital age.

If you are at the stage where you are searching for an ERP provider to partner with, keep a few things in mind to reduce your chances of choosing a company with a higher rate of failure in the future. Choose a company that is focused on new trends like organizational change management.

System providers are in the age now where new directives are becoming more prominent. Many providers are seeing organizational change management as a top performance variable in providing great ERP services. Research any recent technological deficiencies and failures an ERP solutions company might have had due to lack of movement in the digital age.

While an ERP claims to integrate all the vital aspects of your operations in one central hub, not every ERP provider can do actually execute this well. You should make sure to ask potential ERP providers that you are considering partnering with, on which capabilities they are performing best in.

You might choose to go with an ERP software that ticks 9 out of your 10 boxes rather than going with an ERP system that ticks all 10 boxes with a lower quality performance. Your business deserves the best, but with so much softwares out there to choose from in the digital age, it can be a risk to move all your business data to a platform that will not give you the particular results that are of utmost importance in your particular industry.

Keep this in mind when searching for solutions for your business operations, and always ask questions on deficiencies a provider might have had in the past in addition to their best performance aspects. The more you know the less likely you are to find yourself paying for a service that does not actually serve you.

While the best-of-breed model was thought to once go obsolete, it has increased in popularity recently because customization to each unique business has increased. There are so many more types of businesses and products available now than there were in the 1990s, and this is why choosing a provider that can provide as much coverage for you as possible might be a better option for you.

Adapting to change is a requirement within the ERP design. Shorter processing times for project delivery are happening in real-time and the excitement to see what will become of ERP next is anticipated to be both exciting and maybe even unsettling to some.

We hope you have found this in-depth guide to ERP software, ERP implementation, and ERP vendors useful in determining the best fit for your small to medium business or corporate organization. Overall an ERP will always be a great option for any business owner in any vertical as regardless of your industry you will always deal with countless moving factors in order to run your business successfully. ERP implementation is highly valuable because saving time is the most valuable factor of all.

One of the biggest things that people wonder is: What is CRM? They may have heard of it, but aren’t really sure what it means or why it’s important. CRM stands for Customer Relationship Management. Many companies decide to use these types of systems because it makes keeping customer data secure and organized. It can also help improve customer satisfaction and customer experience.

Since customers are the thing that keeps a business going, it’s crucial to manage customer information. Losing or letting this information be stolen can lead to catastrophic consequences. There have even been times when a business goes out of business because it couldn’t keep this information where it needed to be.

One of the best things about this kind of system is that any information relating to the customers can easily be updated. This means if there’s something like a new interaction or new contact information, it can all be added with just a push of a button. This can keep everyone on the same page and prevent people from referring to old data.

If you aren’t really sure what the benefits of a CRM is or why it’s so important, keep reading to get some good information on these systems. You might be surprised how much they can benefit your company and you might realize that things could be done a lot easier!

What is CRM (Customer Relationship Management)?

CRM is used to manage customer contacts and customer data. Basically, a CRM (Customer Relationship Management) is somewhere where you can keep all of these things organized. Since everything is kept in one place, you can easily find what you’re looking for and record any new data or interactions you have with customers.

It can also be used to share data with other employees, such as sales teams or people working on marketing campaigns. Not only will this make it much easier for everyone to find what they need, but it will save time because you won’t be spending all day on the phone trying to give others the information they’re looking for.

It can also help people pay attention to customers and make sure that big accounts or opportunities aren’t missed or lost. This is especially true for companies that have hundreds of interactions with their customers per day. When there’s that much traffic, it’s easy to lose important information in the hustle and bustle! A CRM stops that from happening.

All-in-all, a CRM is there to help you have a better relationship with your customers. In this day and age, it can be hard to connect with people and you want to have the best connection you can. Not only will this make your customers feel wanted, but it will also give you an edge over the competition.

Who Should Use CRM Systems?

While a CRM system could be beneficial to pretty much any company, the ones that deal with hundreds of customers should definitely be using this type of software. Since this amount of leads can be lost in the chaos, you want to make sure you have a way to keep all data and interactions recorded. The last thing you want is to lose out on leads because you don’t have immediate access to their information.

If you feel like you’re losing sales because of unorganized information, want to keep all interactions with customers in one easy to access place or want to track your sales and leads, then a CRM might be right for your business. While it will cost some money to get started, you’ll be able to see how your business does with the system.

Keep in mind, a CRM doesn’t work for you, you can always cancel your subscription and stop using it. You could also choose to use a different CRM to see if you get better results. It might not seem like a big deal, but different systems will have different features and some will be much easier to use than others.

You really don’t have anything to lose. It’s either going to really help your business grow or it’s going to be something that isn’t really that beneficial. In the big scheme of things, paying to try a CRM for a few months isn’t really going to be a deal-breaker!

What Does CRM Mean in Business?

When it comes to a business, the relationship with customers should be one of the highest things on the importance list. While some companies don’t think it’s a big deal, customers are what make your business. To be honest, no customers means no business and you could face some pretty bad consequences.

In order to keep a business running smoothly and the way it needs to, everything needs to be organized and kept in one place. Not only will a CRM allow you to record all interactions you have with customers, but you’ll also be able to record all of their contact information and any other important details you have about them.

When people call or contact a business, they don’t want to wait forever for the company to get their information up. They also don’t want to have to go over every past interaction they’ve done. This is especially true for those customers who are contacting the company multiple times for the same thing. By using a CRM, the person at your company can bring up the customer’s info with a few button pushes. They’ll be able to get right to it and jump right into helping the customer.

The last thing a business wants is the reputation of not being able to keep their customer’s information secure or not being able to have positive interactions. Many people will tell others about their experiences, so a few bad experiences could end up losing you more than just one or two customers! You want to be on the top of your game every time!

 

Important CRM Stats for Businesses

a. CRM has been known to increase sales by up to 29%, productivity by 34%, and forecast accuracy by 42%.

b. Businesses with CRM improved their sales leads by 44%, 45% increase in customer retention, and 52% increase in integrating with other business apps.

c. 65% of sales professionals who adopted mobile CRM, were able to reach their sales quotas.

d. Sales representatives can reduce lead costs by 23% using CRM.

e. CRM can boost conversion rates by 300%.

f. 74% of users believe that CRM software enhanced their access to customer data.

g. 47% of CRM users claimed that CRM greatly improved their customer retention rates.

h. Data accessibility is capable of shortening the sales cycle by 8–14% on average.

i) 65% of companies who use mobile CRM achieved their sales quotas, whereas only 22% of companies without mobile CRM achieved their sales quotas.

j) 87% of the companies that use cloud-based CRM, 13% are using on-premise CRM.

k) 91% of businesses with over 11 employees use CRM, compared to 50% of those with 10 employees or less.

Source from;

– https://financesonline.com/crm-statistics-analysis-of-trends-data-and-market-share/

– https://www.superoffice.com/blog/crm-software-statistics/

 

How to Use CRM for Marketing Strategy

Marketing campaigns can be huge for a company. This is a great way to generate more leads and get more customers. This is even more true for those companies that are just starting out or ones that have kind of hit a plateau. The more customers and sales you can get, the better your company is going to do.

To use a CRM for marketing campaigns, all you have to do is look for customers or leads that are related to the thing you’re trying to promote. For example, if you’re trying to promote some of your products, you can look in your CRM for customers or leads that are related to the specific products.

Once you find the people you’re looking for, you can use the contact information listed in the CRM to reach out to them. You can talk to them and see if they’d be willing to advertise on their platforms. Not only can this get you more sales, but you might get more leads. More leads can lead to you being able to advertise even more. All in all these campaigns can really help your business grow and prosper!

It might not seem like a big deal to do these types of campaigns, but you can’t get more customers without people knowing about you. Even if you’re getting more customers through word of mouth or referrals, you want to try and expand to as many areas as possible to bring in as many customers as you can.

2 Types of CRM System

The 2 main types of business CRM systems are cloud-based CRM (aka mobile CRM) and on-premises CRM. Both of these business CRM systems can be extremely helpful and they can both be used pretty interchangeably. Most of the time, all of the information will be available on both types of systems. Keep reading to learn more about each type of system.

Cloud-Based CRM

In short, a cloud-based CRM or mobile CRM is any type of CRM system that’s kept on a cloud and delivered to people through the internet. This means that all information pertaining to the customer, including interactions and information, are stored in the cloud.

The good thing about this type of CRM is that the person needs to have certain information to access the data. This can either be a login or some kind of link that is sent out. Regardless of the method, these tend to be very secure since it can only be accessed a few ways.

On-Premise CRM

An on-premise CRM is one that is hosted right on the company’s personal server. This means that anyone who doesn’t have access to the actual server can’t see any of the information that’s stored in the CRM.

This is also pretty secure, but there’s a chance that a good hacker can hack right into the server. This is a huge liability because you really don’t want any of this information stolen or destroyed. If that happens, the news can get out pretty quickly and you can easily lose potential or existing customers!

Some companies even choose to use both kinds of systems. Not only will this let all employees, including remote workers, have access to customer information, but it will also allow your company to have a backup of the information if something happens. You’ll have to look at prices and features to see if this is something that will be beneficial to your company.

Does my Business needs CRM?

Before deciding whether or not your business needs CRM solutions, you need to answer a few questions. These questions will give you a pretty good idea of whether or not the software will benefit you. Remember the C and R stands for customer relationship, which is one of the most important parts of a business. Take a look at the questions and answer below to help guide you through your decision.

1. Is My Company Ready for CRM Systems?
The biggest question most companies have is whether or not their companies are actually ready for this type of system. The good news is that there are a few things that will let you know if your company is ready. If you have the things listed below, then chances are that your company could benefit from this software.

• A lot of customer data.
• The need for managing customer information.
• The need to improve customer satisfaction.
• The desire to improve the customer experience.
• The desire to improve customer relationships.
• The desire to improve customer interactions.
• The desire to improve existing customer contacts
• Helping improve customer encounters and bringing in potential customers.
• The need to improve sales and marketing.
• The need to improve management systems.

Even if you only answered yes to a few of these questions, you should still consider using a CRM. It’s a great option for most businesses and you don’t have to worry about features you can’t use or ones that aren’t beneficial because most CRM companies offer many different tiers and prices. You can just look and see which one meets your needs the best.

2. Which CRM Features are Necessities?
With the CRM tool, there are some CRM features that are much more needed than others. These features are ones that are going to help the entire process go much easier and keep all the information for your customers in one place. Looking at the various CRM solutions will show you that each one has different features, but many are the same. Some of the most important features are listed below.

• Good customer support.
• Contact management and lead management.
• Easy sales process.
• Better sales team management.
• Easier sales and marketing process.
• Easy way to make essential phone calls.
• Easier marketing campaigns.

If you aren’t really sure about which features you need, you should do as much research as possible. This will give you the best heads up for when you do finally get the software. Not only do you not want to be stuck with features you don’t need, but you don’t want to be stuck with ones you don’t know how to use.

3. What is my CRM Software Data Structure?
If you or your business isn’t in the technology field, then there’s a high chance you’ve never heard of data structure and you aren’t really sure what it is. In short, your data structure is going to be the way you group your information. This counts for potential customers and managing customer data for the existing customer you already have.

Remember the C and R stands for Customer Relationship, which is something you want to be at the top of your importance list. For the most part, your data structure should follow the same structure as listed below.

• Set up contact information for every CRM customer.
• Link CRM customer contacts to their respective organizations.
• Tag the correct organizations for each customer.
• For each contact, use a tagging structure for their personal information.
• Arrange pipelines and follow opportunities.

While you can add any additional parts you want, you should have at least the structure listed above. Removing anything can make things not go as smoothly as they can and you might be missing out on a lot of information and leads!

4. How Can I Transfer Existing Data?
Since customer experience, customer satisfaction and customer relationships are high on the importance list, the last thing you want to do is accidentally lose any of their data. This means it’s extremely important to transfer all of the necessary data. Not only will this keep customers happy, but it will also improve customer encounters.

The good news is that a CRM tool usually has a ton of options for importing data. This means that you can get all the important data imported with just a push of a button. You won’t have to manually enter anything because the management software will do that for you. If you still aren’t sure how to do this with the management systems you chose, there should be a help or tutorial button to help you.

If you can’t find these buttons, you might need to call the software company’s service desk. They should be able to walk you through the steps you need in order to do what you need to. They might also be able to give you some additional information on tutorials that will help you.

5. What Integrations are Needed for CRM Solutions?
Integrations are an essential part of management software. This is mainly because so many businesses use 3rd party companies to help everything run the way it needs to. The great news is that these types of systems can help you get rid of the countless apps you use by putting everything together. Some of the things that you’ll need to integrate are listed below.

• Combining all customer interactions into interaction histories.
• Transfer all quotes or proposals.
• Start using outside archives for documents.
• Sending out new leads to all email systems.
• Copy any events or tasks to smartphone calendars.

Just like the data structure, you can add more steps to your integration. The important things are that everything is transferred over and you don’t miss any important information. As long as you have everything you need, you shouldn’t have to worry about anything.

6. Who Needs Access to CRM Systems?
Since CRM has things that could be considered confidential, you need to make sure that anyone that sees the information will keep in under wraps. With that said, though, it’s a good idea to have the system available for anyone who might need it. This includes members of the sales team! If it’s easier, have people log in with personal credentials, so access records can be kept. Some of the people that need to be able to access these systems are listed below.

• Anyone working with the company for marketing campaigns.
• Sales teams
• Contact management members
• Any person working with customer service or customer support. This includes people doing phone calls and working the sales process.

For the most part, you want to have this system available to as many people at your company as possible. With that said, though, try not to give this information to many people outside of the company just because that can lead to a leak of info.

7. Who Will “Own” the CRM Systems?
Since so many people will have access to the system, things can get pretty crazy. While you could use personal credentials to keep track of logins, there’s a chance that things might still get hectic. Since this is the case, there needs to be an “owner” of the system. This person will be responsible for the system, including whether it succeeds or fails! When looking for the perfect person for this, they should also be able to do well in the areas listed below.

• Implementation: They should be able to easily get things up and running.
• Policies and Procedures: They should be able to understand and follow any procedures or policies for the system.
• System Policing: They need to be able to monitor things and bring consequences to those that aren’t doing what they’re supposed to do.
• Security: They need to be able to keep everything secure and prevent any information from leaking or being destroyed.

If need be, try looking at current employees’ past work performance or hold interviews for them. If you can’t find a suitable person that already works for your company, you might need to hold interviews to bring someone in. If you go this route, make sure that person signs paperwork that will prevent them from leaking any customer information.

8. Do I Need a CRM Software Consultant?
For the most part, there are 3 different types of consultants you can hire. These are CRM experts, IT consultants, and sales process consultants. Whether you need one or not is going to be up to you, but you should consider it if you’ve never used a CRM system before. You should also consider using one of the systems is really complicated or hard to navigate.

If you do decide you need a consultant, you want to make sure you hire the correct one. Make sure you hold interviews and have them show you some past work or how they do in action. You don’t want to hire someone, then find out that they really aren’t good at their job!

9. What Will the CRM Systems Cost?
The exact cost is going to differ from place to place, but there’s going to be fees regardless. Most places will give you an outright quote, but some will make you do all kinds of stuff just to get it. Some of the things you can expect to be included with the cost are listed below.

• Fees for a consultant.
• Costs associated with training.
• Subscriptions for 3rd party integration.
• Opportunity costs

Keep in mind, some systems might have other fees that are unique to their company or business. The best way to find out is to ask the company questions and see what works best for you. Another thing to remember is that there might be some fees that aren’t immediately talked about upfront. It’s always a good idea to ask and get this information so there aren’t any surprises.

10. Will the CRM Software Meet My Future Needs?
The biggest thing to keep in mind is that you want a CRM that’s going to meet your needs for a long time. With that being the case, don’t choose a system that only looks good for your present circumstances. Looking into the future will help you save money and time. Look and see if the system you’re considering has options that can grow with you, instead of options that are good just for the here and now.

If you aren’t really sure, you can always try and ask these questions to the company. Make sure to ask questions that can’t have biased answers because many companies will say what they need to in order to make a sale!

11. How Will I Measure ROI for the CRM Software?
ROI is extremely important for any business. You want to make sure your business is growing and the CRM system you chose is working well for your company. You can measure ROI by looking at the past information to see how it’s going.

Remember, while it’s important to make money in your business, you also want to make sure that the customer experience and customer satisfaction is high on the list. After all, no customers mean no business! The happier the customers are, the more business you’re going to get!

If small companies expect to thrive in today’s competitive business environment, they must be willing to take the necessary steps. That includes investing in software that can make their business operations more efficient and give them a competitive edge. Enterprise Resource Planning (ERP) software is one such system that small businesses must seriously consider.

Is ERP too “big” for small businesses to handle? Not necessarily.

Small business owners must rather be worried about what they’re missing out on by not incorporating this type of system in their companies. ERP systems enable organisations to become better equipped at navigating the competitive business landscape.

Larger businesses understand the value of this system and it’s high time smaller companies realise it too. Many small business owners view an ERP as expensive—which it is. But it only takes a look at the benefits associated with this system to realise that it’s a worthwhile investment.

What is ERP?

ERP is a key software product designed to manage a company’s productivity, order processing and inventory. This system handles and manages business aspects such as:

• Revenue management
• Materials
• Orders
• Staffing
• Manufacturing capacity

And the best part is that the above-mentioned functions are handled by a single interactive database management system.

Still sceptical about investing in this system? Maybe answering the following questions will get rid of all uncertainty.

Which Small Businesses Can Invest in ERP Systems?

You’re probably thinking this system is only designed for businesses specialising in specific industries. But ERP can be used by small businesses across all industries which include but aren’t limited to:

• Manufacturing
• Retail
• Human resources
• Accounting
• Construction
• Agricultural

Are ERP Systems Really Suitable for Small Businesses?

Small business owners cite funding limitations and lack of technical support when it comes to investing in ERP systems. Frankly, both reasons were valid in the past, but not anymore.

Granted, there weren’t many ERP systems suitable for small business back then, but thanks to recent technological advancements, there are more practical solutions available.

What Benefits Can Small Businesses Expect from ERPs?

Costs aside, what are the benefits you’ll forfeit as a small business by not investing in an ERP system?

Increased Efficiency

In the absence of ERP software, chances are that each department has its own information system. This means relevant data can’t be shared and accessed across all departments. ERP systems are designed to integrate this data across you departments which:

• Eliminates duplication of efforts: No two departments will have to re-enter the same data.
• Minimises errors: Because there won’t be a need to constantly export data, you’ll notice a significant reduction in errors.
• Reduced expenses: Since data is automated, you don’t need to assign many people the task of capturing data. This reduces costs associated with human resources.

Quick Decision Making

Fast decision making is crucial if businesses want to keep up with their competitors and satisfy customers. If departments have individual information systems, you can expect delays—and red tape—before decisions are made. This is because most decisions can only made based on available data.

That’s where your ERP system comes in; it provides real time data to the relevant departments. As a result:

• Decisions are made quickly
• Obstacles and loopholes affecting productivity are detected on time
• Relevant departmental heads are always in the loop regarding the overall production picture

Increased Productivity

Is your business slacking on productivity? Maybe staff are spending most of their time entering and re-entering data. ERP streamlines business processes so that staff can focus on increasing volumes and devising new strategies that can improve productivity.

When to Consider Investing in ERP Systems

We get it; businesses set goals. And one of yours may be to invest in ERP systems in the third year of your business operations. While we respect adhering to your strategic plan, there are some cases that warrant immediate implementation of ERP systems and can’t wait for the three-year mark.

Consider investing in an ERP system right away if:

• You now find it time-consuming to process a large volume of data. Are you now heavily relying on the use of Excel spreadsheets?
• You’re overwhelmed by keeping track of client interactions.
• Processing orders and updating inventory has become a tedious & cumbersome process.
• Your sales forecasts are now based on guess work.
• If accessing solid facts needed for decision making has become problematic.

What to Consider Before Picking an ERP System

Congratulations for deciding on investing in what may very well be one of the biggest investments for your business. But don’t pick the first system you come across.  As a small business you want to invest in a system that’s specific to your industry and meets your needs. Opt for software that’s manageable and cost-effective.

Answer the following questions before making your final investment.

Is it User-Friendly?

Ideally the ERP system you pick must have a responsive interface that your staff will find easy to navigate

Is it Customisable?

The software must be scalable according to your business objectives. It must allow you to pick the features you want to use and have room to adapt with business growth.

Does it Need Frequent Upgrading?

With any software, regular updates are mandatory. However, you must pay attention to the terms regarding upgrades. Do the updates attract a certain fee? Opt for software which has locked upgrade fees that don’t increase with future releases.

Is it Secure?

Are the passwords strong? Who is authorised to view certain data? Pick a system that’ll keep your data secure and only accessible by relevant parties.

Recommended read: “Cloud ERP vs On-Premise ERP: A Comprehensive Comparison”

Does it Come with Support Services?

Software that comes with sufficient technical support is ideal. Pick a vendor that provides you with personnel for set up, training and ongoing maintenance.

Final Words

Are you convinced an ERP system is something your business is in need of? Invest in ERP software and watch your small business flourish.

If you have any queries about using ERP for your business, you can talk to our friendly staff.

In today’s world, your business is up against the best of the best. In order to stay ahead of the rest, you need to have the best business management software.

The way your business collects, stores, manages and interprets data will determine your success or failure. This article will assist you as a business owner in identifying the common mistakes often made and in turn it will help you avoid them.

Leaders in the industry admit that many of the experts in the field of ERP have made crucial mistakes when it comes to selecting, installing and executing an ERP system.

The mistakes that the industry leaders made, have helped in crafting this article. We identified the 11 common mistakes they made when they sought out ERP systems for their business.

1.     Thinking One Size Fits All 

Firstly, one of the biggest mistakes that businesses make is not taking the time to determine the need for business specific solutions. Your business needs to appreciate its uniqueness. Not all ERP systems are built the same and so one size doesn’t fit all so pick wisely. The next few points will help you get it right.

2.     You Don’t Determine Your Need

When you have a growing business and you have limited time, the last thing you want to do is sit down and assess what requirement your business has. The default result would be to take existing structures and make them into the ERP solution.

This is where many businesses fail. They assume that the existing structures will work with an ERP system. The business underestimates the importance of assessment and information gathering.

If you do invest the time to find out what you really need, you can realign your business process and improve your ability to perform and deliver.

3.     The ERP Doesn’t Work for Everyone 

Do you employ one person, 100 people or 10 000 people? No matter the number, every person who will be involved in working with the ERP system must have an input. They must help determine the requirement for the ERP system that will best suit the business and its end users.

Many companies only focus their attention on the top leadership structure when taking inputs on the ERP system requirements. But often these aren’t the true end users of the system.

When all stakeholders are involved in the designing of your organization’s ERP solution, they have an entrusted awareness of the system. This can make them more committed to making it work.

4.     Money, Money, Money

When any business embarks on an exercise of developing and implementing an ERP solution, they need to forecast the financial implications this system will incur. Over and above the initial cost of the system development & design is the ongoing maintenance of the system.

When there’s insufficient capital available to fund the project, the business will resort to a system that’s not designed for their operation and they ‘settle’ for the second or even third best option.

The solution is to budget well and look for a system that matches your needs as well as your financial resources.

5.     Not Considering On-Site Versus Cloud Based ERP 

Every business is unique. There are differences in terms of industry, the platform it trades on as well as the geographical area you conduct your business. Simply because a cloud based ERP works for your competitor, doesn’t mean it will work for you.

If your business has stable and secure internet connectivity, subscription payment system and your employees can work remotely, then the cloud-based ERP solution will best suit you.

The on-site ERP system will best work in a business that has a dedicated IT department or specialist division. This type of system also requires a high amount of start up capital as there needs to be updated servers and in-house hardware.

6.     Paying for Enticing Features You Don’t Need

Features of an ERP system should only assist your business in achieving its desired goal, of performing and delivering a service. Many business owners are dazzled by the impressive array of features that the systems offer. They end up wasting money on features they’ll never use.

What business owners should focus on is:

• The industry track record
• Customization options
• Flexibility and scalability to suit your business
• Effortless incorporation and integration

7.     Trying to Do Everything at Once

An ERP system is a complex creation to develop and add to your backend. Business owners or IT specialists shouldn’t be concerned with developing and implementing a system all at once. The different parts of the system need to be developed and then assembled piece by piece.

Using a step-by-step process will ensure you have a workable system with the end user involved in each step to make the system efficient and effective.

8.     Not Managing the Change

Every employee needs to feel secure in his or her ability to get the work done. That is why change management is such an integral part of the development and implementation of the ERP system.

If management or the business owner ignores the importance of this aspect of management, they won’t effectively implement the system. Add this element to your timeline during the planning phase.

9.     Not Supporting the Implementors

The employees that implement the system need the support of management. In many cases when the team isn’t supported it results in poor decision making and integration which could eventually lead to a redundant system.

Help them implement and maintain the ERP system now so you have a better chance at success in the long-term.

10.  Communication, Communication, Communication

In both personal and business relationships communication is key to success. You need effective communication between individuals, between departments and within departments.

A priority should be to get the specifics of what is needed in the development of the ERP solution so it serves you well on a continual basis. For this to happen the end users must be empowered to regularly communicate their concerns or opinions.

11.  The Absence of a Maintenance Plan

Throughout this article we mentioned the maintenance of the system. The reason for a maintenance plan is to ensure that the evolving environment and business will be taken into consideration. Without it the system that works to your benefit today may not be relevant in a few months’ time.

Conclusion

The primary focus of any business is successful operation that will ensure its sustainability and growth over the years. If you pick your ERP system for your business, make sure you avoid the 11 mistakes that many business owners and IT specialists made.

If you learn from their mistakes you can experience your success a little sooner than they did.

If there was an easy answer, we would state it right here. But as with many business solutions, deciding between a cloud ERP and an on-premise version, is a very personal choice. It’s almost a cliché, but it’s true: Find what works for you.

But it’s challenging, right? Technology changes so rapidly that it’s difficult to know what is the best long term decision for your business.

We’re going to help you: Your best bet is to make decisions with as much information as possible on hand. And we summarized the most important below.

Definitions

Let’s start with the basics so there are no misunderstandings.

Cloud ERP

“In the cloud” is becoming a popular term in many environments, also in ERP. If you pick this method your data will be hosted by the ERP service provider. It doesn’t even use the vendor’s own hardware always, but rather your data is held on the internet ‘cloud’.

One of the unique features is how you access this information. You’ll be using your internet web browser. This type is often called SaaS (Software as a Service). You and your employees don’t need to download software to your computers necessarily. Everything happens on the cloud.

Recommended read – “5 Good Reasons to Deploy a Cloud ERP“.

On Premise ERP

This system will be installed on your premises as the name suggests. It will be using your own hardware and servers. What you may not have thought of is that it will also be your IT team managing the data, even though you have a service provider offering you the program.

Now, how do you pick between the two?

Vital Knowledge Before You Initiate ERP

Because there is no right or wrong method to use, don’t let the decision dictate to you. The best starting point is to assess how you currently function and finding an ERP that aligns with it in as many ways possible.

However, if a certain method will be more beneficial (we’ll discuss that below), yes, it’s worth investing in the necessary assets to make it work.

Now, write down your priorities and then see how the differences below will help you achieve your personal goals & suit your preferences.

The Important Differences

We’ll describe each scenario and offer our opinion on the best option. However, don’t simply take our word for it. Remember, it’s about your personal preferences, needs and capabilities too. See how it applies to your unique situation before deciding which one comes out on top from your perspective.

Costs Involved

Your equipment determines how effective your ERP will function and when you have an on-premise ERP the responsibility lies with you:

• Obtaining hardware and servers
• Employing capable IT personnel to maintain, upgrade and deployment
• Managing customizations

This is a huge capital investment at the start of the venture, though you may pay less each month to a service provider. You also have to pay employee salaries.

In contrast, a cloud ERP doesn’t require you to invest in assets and most of the maintenance work is done by the SaaS team on your behalf. You don’t pay salaries so your only expense will be monthly fees.

An added bonus with a cloud system is that your IT personnel can focus on other improvements in your company, rather than maintaining the ERP. This is often a full time requirement, leaving no time for other projects.

Winner: It seems there’s a clear winner as cloud based ERPs will cost you less in the long run, even though you’ll commit to monthly payments. If you already have hardware and servers on hand, you may consider using them though. Some may simply have to opt for the cloud option because of a lack of cash flow.

Changes Over Time

You need to pick an option that makes long term sense. You don’t want a solution only for today, but one that will ensure optimal functioning months and years from now. That means your software must move with the times:

• Technology changes and you can’t afford falling behind
• Your business will change and your ERP must keep up

How do the two options support these scenarios?

Upgrades are necessary but they can create problems in on premise ERPs. Usually if you upgrade your software, you’ll lose previous changes, such as customizations your IT team implemented. This means every upgrade requires a tedious implementation and customization process. This often leads to businesses not doing upgrades at all.

On a cloud based ERP upgrades are effortless. The vendor implements the upgrade and everyone using the SaaS instantly has access to the new features. Customizations can usually be incorporated seamlessly.

Of course your staff must be prepared to often see the new changes, with or without prior warning.

There may be challenges to integrate a cloud based system with your unique setup, but the characteristic of quality cloud ERPs is that they are flexible.

Winner: Cloud ERP. If you don’t like sudden changes you may want to implement changes yourself however; as and when you’re ready.

Is There a Better, Faster Performer?

Of course, you want to know how this will affect your day to day functioning, right. Here are a few facts:

• It’s faster and easier to implement a cloud ERP as you don’t spend time acquiring an infrastructure
• A cloud ERP is more accessible to employees
• If you don’t have quality internet connections an on-premise system works better
• Having multiple users won’t affect the efficacy of a cloud based system

Winner: Your location and internet access determine the winner

Can One Save You More Time Than the Other?

Studies show even after using the cloud method for years, some users still pay up to 50% less compared to creating your own server system and employing the staff it will require to maintain.

Winner: Cloud ERP

What is More Secure?

The industry took its time before businesses decided it’s safe to store sensitive personal or client information on the cloud. It is easier to keep data secure on the cloud, contrary to what many believe.

Today it’s common knowledge that it’s easier and more cost effective to store data safely on the cloud. Vendors often offer backup services, disaster recovery services and industry standard security features. Doing this by yourself requires a lot of effort and money.

Winner: Cloud ERP

Conclusion

These are only a few aspects that play a role in deciding the best option: Cloud vs On-premise. Did you write down your score according to your unique setup? Which method came out on top?

If you need help in choosing the right type of ERP for your business, do contact us.