Why choose ERP?
There's a lot of talk about ERP (Enterprise Resource Planning). But what exactly is ERP? When should you consider it for your business? And how do you identify what you'll need?
What does ERP software do?
ERP is a management software package that centralizes all of a company's operational flows: accounting, sales, human resources, etc.
How a start-up works
At start-up, the choice of ERP software is rare. The entrepreneur generally begins by organizing his Database (BDD) on Excel. When the need arises, he may move on to a business tool: CRM (Customer Relationship Management) software for sales management, or accounting software for bookkeeping. So far, there' s no ERP on the horizon, and a priori there's no need for it. So what's the trigger? At what point can or should a company consider ERP software?
Growing needs
The need for an ERP tool arises when :
- internal dysfunctions accumulate,
- processes become redundant or laborious.
Let's say one of your sales reps hears that a customer has moved. He makes a note of it on his own. But if he doesn't pass on the information to the accounting department, invoices and mail will continue to be sent to the old address. To encourage internal exchanges, department meetings can be held to cover all these points. But there's a risk that some will be omitted. With their heads in the sand, it's easy, even common, to forget what information needs to be passed on to colleagues.
The need for a common tool
It's not so much the size of your company as the volume of data processed that will bring you to the threshold of needing ERP software. Insofar as the information entered by someone in the company becomes accessible to all your departments, you instantly eliminate problems of information transmission. More autonomous, everyone has access to the data that interests them, and can dig deeper if necessary. From a structural point of view, ERP becomes the backbone of the organization. Common to all employees, it is at the heart of everyone's tasks and progress. Collaborative, it introduces greater transparency. And for management and the various department heads, it facilitates business management. Figures are available in one place, and can be cross-referenced to give a concrete overview of the company's situation, from a financial, competitive or human standpoint.
How do I choose my ERP software?
Depending on your sector/business
On the whole, companies have similar processes: prospecting, sales, invoicing, internal management... However, the way each one operates differs to a greater or lesser extent. A consulting agency, for example, does not operate in the same way as a construction company: prospecting scenarios, quotations, project calls, invoicing by mission or by hour... This is why some ERP software is dedicated to one or more specific sectors. IOvision, for example, is aimed more at service companies such as agencies and firms, while Archipelia is positioned more towards retail, trade and production activities.
Specific features
These ERP software packages, a kind of sector-specific toolkit, are turnkey. If you work in a particular field, this tool is a priori made for you. But... it may be that, while operating in a given field, you have your own business model or way of operating that makes you different from your peers. In this case, off-the-shelf software may not be right for you. You then have two alternatives:
- Opt for an ERP that meets your specific needs. If, for example, you have identified human resources management as a key factor in the success of your business model. In this case, it would be wise to opt for a tool that is particularly advanced in this area, such as Zéphir.
- opt for modularity. Your sales force may be used to working with one tool, or your accounts may have been managed on another for some time. By opting for a transversal ERP, you'll have to ask your teams to change their habits and work environment. And some may find the new tool less efficient. Fortunately, more and more ERPs are equipped with APIs to interface with third-party solutions. This tool compatibility means you can choose or retain the solution required by each of your departments, while unifying the structure's information system.
If a company can do without ERP, there will always come a time when it will be necessary. ERP software streamlines internal workflows and helps to improve productivity, provided it matches the company's business or specific needs.
Article translated from French