ERP explained simply means understanding how ERP systems integrate core business processes to improve reporting visibility efficiency and scalability.
At Freeman Clarke clients frequently ask for our help with Enterprise Resource Planning projects because ERP systems can take mid sized businesses to an entirely new level.
But they’re also notoriously difficult. ERP projects can be ruinously expensive — it’s often said that 75% of them fail. This makes it essential for leadership teams to approach ERP explained not just as software selection but as a business transformation programme.
With this in mind, in the coming weeks we’ll be developing our ERP Knowledge Centre. It will provide a comprehensive introduction to ERP systems, how best to implement an ERP project, and how to avoid the common mistakes that lead to expensive and frustrating ERP failures.
But let’s start with the essentials.
ERP explained: what is ERP
Consider all the core processes you need to run your company: finance, HR, manufacturing, supply chain, services, procurement, and others. The most basic function of ERP is to integrate all these processes into a single system. The result is that all these separate parts of your business have access to the same information in real-time.
But new ERP systems are anything but basic. They use the latest technologies, such as machine learning and AI to provide information, visibility, and efficiency across every aspect of a business. And the promised integration may not materialise if the system is not implemented correctly.
Initially these products were targeted at the manufacturing sector. But they have generalised their offers to cater to every kind of business in every sector.
ERP explained: advantages of ERP systems
There are too many advantages of a well-executed ERP system to list in one blog post! But we can say that the advantages break down into four main categories:
- Reporting. In the past, to generate reports, many companies had to manually merge data from multiple systems (Many companies still operate this way!) ERP automates reporting and provides updates in real-time.
- Risk Management and Compliance. Each sector has its own regulatory challenges to comply with; ERP systems can be adapted to the regulatory needs of any particular sector or business, providing automation and transparency.
- Automation of Business Process. ERP promises to streamline front-office and back-office processes.
- Customer Service. Slick, integrated processes make for a more reliable business with fewer errors, which means that your people can focus on customers. And ERP systems often include Customer Relationship Management (CRM) to track and retain customers.
What are the options?
The best-known products are from Oracle, including PeopleSoft, Netsuite and JD Edwards; SAP (the full product and it’s confusingly named versions); Sage; Microsoft Dynamics and Microsoft Dynamics NAV; IFS; Epicor; and Access.
But the list of options can seem endless, as specific sectors have their own ERPs — you’ll find products for the legal sector, logistics, manufacturing, professional services, and facilities management.
How do I start an ERP project?
An ERP project is a major undertaking for any organisation. If you’re approaching this for the first time or your current ERP project is going south — call Freeman Clarke for a low-pressure, no strings-attached discussion. Our people are experts in all aspects of ERP projects, solutions and products.
ERP explained properly helps leadership teams understand how integrated systems improve reporting visibility operational efficiency and customer service. Organisations that approach ERP explained as a strategic transformation rather than a technical upgrade are far more likely to achieve long term success.
If your organisation is considering ERP explained for the first time or reviewing an existing programme Freeman Clarke can provide independent guidance based on practical implementation experience across multiple sectors.