Choosing between ERP and specialized applications
Is your company growing every year, and are you accumulating software that doesn't talk to each other? Perhaps you have a sudden, combined need in customer relations, project management, human resources and other areas? Then the question arises of pooling your software solutions to boost productivity. Read all our tips on using ERP.
It's a critical node in the evolution of your company, which will either make you more efficient or, on the contrary, slow down your development. Just 5 years ago, the question was not asked: the ideal solution was ERP. The choice is now less obvious, with the proliferation of SaaS (Software as a Service) solutions that cover all your needs and communicate with each other natively... Almost like an ERP application, so to speak.
Are we still talking about ERP in 2016?
Yes... But things have changed a lot. To understand this, we need to go back to the fundamentals of ERP. An ERP is a set of specialized modules (HR, finance, sales management, etc.). They operate on a single database that guarantees data sharing, refreshment and traceability across all modules of the system. The ERP application covers the majority of a company's business needs - indeed, it constitutes its entire information system. The fundamental advantage of ERP is its ability to track all operations, from quotations to financial reporting.
The ERPs we're talking about are published by Oracle, SAP and other historic players. These are now being called into question because of their high cost (several hundred thousand euros without maintenance costs), lack of collaboration and failure to take account of mobility needs.
In 2016, ERP takes on a lighter form. In fact, it's sometimes referred to as enterprise management software. Although the fundamentals remain the same, new solutions such as IOvision or Fitnet Manager benefit from the advantages of SaaS: low, monthly licenses, low installation costs, the ability to share knowledge beyond business processes, and accessibility from any device, at any time, in a highly secure way.
Why specialist software?
Online applications, or SaaS software, have now reached a level of maturity that enables them to be used by SMEs and large corporations alike. These solutions, accessible via a Web browser, are open. Virtually all of them offer APIs (Application Programming Interfaces), enabling them to communicate with each other. So you can choose your CRM, your quotation and invoicing software, your project management software, and have them all communicate with each other. In this way, you can create estimates based on the customers in your CRM, and then execute projects as soon as they have been invoiced.
That's the principle.
In reality, it's not yet easy to find a suite of online applications that suits your needs and, what's more, integrates natively and perfectly with each other. However, the future of specialized SaaS is moving in this direction, and it is often possible to negotiate the development of a gateway with publishers, or to do it in-house.
The best of both worlds
Taken independently, specialized software often has simplicity of use and agility on its side. Many SaaS solutions "plug in" to cross-functional applications such as productivity suites (or office suites). The tried-and-tested example is Salesforce, Zoho CRM, Sellsy and other online CRMs connect to Google Apps to integrate email conversations and appointments with account management in the CRM. Here are just a few of the benefits:
- Business expertise : CRMs, like invoicing, quotation, accounting and document management software, are designed and enhanced by specialist publishers who gather feedback from their customers on a daily basis. They also face stiff competition that constantly raises the bar. And it's our customers who benefit.
- Openness: to stand up to the competition, SaaS providers have to prove that they can adapt to their customers' evolutions. This is why almost all of them have APIs that can be connected to any other SaaS. Some online applications offer native connectors to other named applications.
- Collaboration and mobility: specialized SaaS applications are increasingly integrating chat, document sharing and notifications. Publishers are also striving to offer an iPhone or Android application, or at the very least a dynamic / responsive interface (access via your web browser to an interface adapted to your mobile).
- Getting started: getting started with a specialized application is often less impressive than with an ERP. The scope of the service is clearly defined, and its uses are streamlined.
For the reasons detailed below, ERP has a number of undeniable advantages that will ensure its future remains as bright as ever:
- 1 editor, 1 logic: by opting for an all-in-one solution, you only need to integrate a single logic to automate all your processes.
- ERPs are adapted to SMEs and even VSEs: Microsft Dynamics NAV and Sage Gamme 30-100, for example, are designed for small and medium-sized companies.
- ERP systems are becoming more specialized : this is a strong trend. To keep up with international competition, many ERPs specialize in a particular theme or industry. So there's plenty of choice today:
- IOvision, the ERP developed by IOcean, offers a complete, modular ERP adapted to service companies. As IOvision is also an IT services company, its customers benefit from all the expertise it has acquired over the years.
- Fitnet Manager is another ERP choice for companies working in project mode with their customers. This business management software even includes a training module for your trainers.
- Data integrity: As previously mentioned, "native" connections between SaaS are not yet abundant enough. The ERP application therefore has the advantage of being able to irrigate the entire information system with the same data, and thus trace it through the business processes. As a result, there will never be any import/export, or worse, re-keying between two business lines.
- Functional coverage: being in a unified environment in terms of data model opens up greater possibilities in terms of uses. ERP systems therefore often offer more advanced functionalities. They are also designed for SMEs or large groups, and thus meet advanced needs. Specialized SaaS, on the other hand, are aimed at the general public, and therefore require functional choices.
Generally speaking, companies wishing to place particular emphasis on the performance of one or more teams will opt for a set of specialized SaaS often revolving around the office suite: Google Apps and Office 365 have reached such a level of popularity and openness, that online software publishers spontaneously integrate the possibility of retrieving data from these central services. ERP, on the other hand, will suit companies with a need to industrialize their business processes. This option will enable them to achieve massive economies of scale. ERP also offers excellent information tracking and perfect data integrity. Finally, you have the choice of hosting the solution on your own premises or in the cloud, rather than with pure SaaS players, who more often than not apply multi-tenant logic to all their users.
Article translated from French