If you’re thinking about implementing an ERP concept into your business processes, here are some things you need to consider first and a few crucial benefits you can expect.
Agile ERP Implementations Can Build Value Incrementally
It’s always best to absorb new technology in bite-sized chunks. For instance, agile startups often aim to ship the minimum viable product as soon as possible.
In the same way, the agile ERP concept motivates businesses to implement the “minimum viable implementation.” As a result, this approach increases the speed of the time-to-value ratio.
With that foundation, businesses can then easily add capabilities and make adjustments along the way.
ERP System and The Continuous Improvement
Another important aspect of the ERP system is that it enables businesses to continuously improve as they scale, evolve, and grow.
At the root of the ERP concept is the strategy of introducing small but efficient improvements at a frequent and steady pace.
This approach includes refining and improving processes and keeping up with the latest and relevant technological improvements such as analytics, big data, mobile, and so on.
However, you have to be aware that implementing the agile ERP approach requires you to invest in ERP software solutions. These are specifically architected to enable a continuous flow of improvements without any disruption.
On the other hand, using ERP systems that are created for bigger implementations comes with quite a set of disruptions in upgrades at the beginning.
Going Live vs. Realizing Value
With ERP software, it’s not enough to turn on the switch and call it a day. The aim is to incorporate an ERP system with a fluid user experience, a high engagement rate, and the ability to create value.
Going live is just the first step in adopting this new approach, which will take time to fully implement and produce the desired results. It’s normal to have a rocky start.
Some companies even had trouble shipping products after implementing the new ERP system. This disruption can last for a few months at first.
So, don’t be alarmed if things don’t go as smoothly as you expected them in the first stage.
Industry-Specific Efficient Practice Blueprints
When you initially want to install it as a “blank slate,” the implementation of the ERP approach can take longer. This is due to the fact that a “blank slate” model requires a huge amount of work to be done when it comes to creating different screens, reports, toles, system configurations, workflows, mapping, and other customization elements.
For that reason, customization tends to cause trouble with upgrades. The system either breaks or requires extensive debugging and rewriting of the original code. This can lead to delays in certain upgrades at the beginning.
One of the most efficient ways to solve this issue is to use industry-specific practice blueprints that have proven successful.
These blueprints contain some industry-specific configurations. They come with successful agile implementations such as user roles, system-to-system mappings, business rules, role-specific workflows, analytics, and reports.
With combined elements, these blueprints have already been successful within a specific industry and sector.
When effective industry-specific blueprints are being created, they require someone with rich experience and expertise to be in charge of a project like this. They need to learn what actually works within that industry and in real-life scenarios.
Solution providers also need to understand the user community in that specific industry before they dive into creating the blueprint.
This kind of approach offers a very efficient shortcut to anyone who wants to implement agile ERP into their business without having to struggle with all the disruptions in the beginning.
The Benefits of the Agile ERP Concept
Now that we’ve covered some of the basics that you should consider before choosing the agile ERP concept, let’s cover some of the numerous benefits this system offers.
ERP is a great investment that can significantly reduce your costs. Ranging from a few hundred bucks to about $100,000, ERP is a worthy investment that will end up saving you a lot of money in the long run.
Firstly, you no longer have to manually input data. The program allows you to insert it once and the program will automatically carry it over to all the other departments.
You can also save a lot of time by streamlining redundant tasks such as employee payroll, invoice allocation, report drafting, and so on.
In addition to that, you can save on your IT costs if you choose to invest more money in disparate systems than the amount you invest in a centralized ERP.
A single system will also reduce your end-users’ training requirements since they won’t have to interact with multiple individual applications.
Total Visibility and Data Reliability
Secondly, ERP comes with data reliability and complete visibility. These happen to be some of the most crucial selling points for any business, no matter what industry it is.
With ERP software, you will have complete visibility into to all of the vital processes that are taking place in your business. Every department’s data will be easily accessible to you and your senior management.
This advantage will allow you to monitor inventory levels on a daily basis. This includes future consignments that have not yet been received and the inventory that is currently in transit.
Knowing exactly the state of your inventory at all times will help you control your working capital more precisely.
Improved Reporting and Planning
As a result of total visibility, you’ll notice that your planning and reporting are improving.
Implementing an efficient ERP strategy means that you’ll gain better insight into your processes and improve your reporting as well. This unified reporting system containing all of the processes in the company serves as a single source of data meaning that valuable reports and analytics can be generated both quickly and efficiently.
You will be able to analyze and compare the functions of your departments without struggling with tons of different emails and confusing spreadsheets.
By helping you reduce the time and effort you would otherwise waste on doing the above-mentioned tasks manually, ERP boosts your efficiency.
Additionally, the system is designed to adopt some of the most efficient practices within your specific industry, such as colorado media companies and others. As a result, you and your employees will be able to focus on other tasks that need to be taken care of and boost your efficiency and productivity.
Better Customer Service
Lastly, without even knowing it, your clients get to enjoy these ERP system benefits. Since client information is streamlined and centralized, your sales team can successfully create and maintain customer relationships instead of spending too much time on spreadsheets.
The business’s main focus is always customer retention and acquisition. With ERP’s high-quality insight and end-to-end tracking, you will improve your customer interactions through marketing automation.
Most ERP suites are also designed to support e-commerce platform integration. Your business can greatly benefit from this merger since it will allow it to handle web-based order processing and online customer interaction.
Overall, ERP can be a bit tricky to implement at first. However, if you use an industry-specific blueprint, that transition will be a lot easier.
In addition to that, ERP comes with many amazing benefits. The ones mentioned above are just a few that will help your business grow.
Sophie Douglas is a digital marketing specialist and a journalist based in Columbus, state of Ohio.
Her characters are passionate, innovative, and ambitious.
Before becoming a writer for DigitalStrategyOne, she was writing short stories, screenplays, and directing short films.