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ERP - End-to-end business processes are also a must at sme sector

Tags Process optimization | SAP
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ERP at sme sector - Expert opinion


Enterprise resource planning systems, or ERP for short, are a central component of many companies. Above all, they ensure the transparency of all stored data and consistency in the core processes. However, the reality at sme sector is different: Over the course of time, many companies have implemented a wide variety of software solutions from a wide range of providers. However, the larger this patchwork becomes, the greater the desire for a standardized ERP system.system.

 

But why is the consistent mapping of these processes in sme sector so crucial? I would like to answer these questions for you in this article.

A simple example: ordering in an online store


Let's look at a world without an ERP system. I order a product in the online store. The starting signal for the underlying business process. The first step is to enter my customer order. The corresponding order and customer data is initially stored in the corresponding online store. However, this is not connected to other systems. The customer data must therefore be manually transferred to the corresponding customer master system. A first hurdle for a smooth process.

 

In addition, employees have to reconcile the stock figures of the items between the online store and the inventory management system several times a day - in the worst case, also manually. If an internal person responsible for ordering is unavailable, it must be ensured organizationally or through another external system from HR that the orders can be processed by someone else.

 

This small example alone shows that 3 basic resources are necessary for planning a business: Capital, employees and operating resources. Of course, these resources can also be planned by individual systems, but this quickly reaches its limits on several levels.

Borders without ERP


At the technical level, especially when maintenance is taken into account, the integration of the individual systems is costly. In the worst case, each new legal requirement has to be implemented individually in all systems. In addition, a split system landscape inhibits innovation, e.g. in the form of proof of concepts, MVPs, as they often affect more than one system.

 

It becomes even clearer at the business level. Here you quickly realize that it is very difficult to combine the distributed data into a common picture, such as the golden customer. The decisive single point of truth is missing because the order and customer data is scattered around the respective system. This is often accompanied by a lack of a single point of entry. Specialist employees need to have a good understanding of the existing systems in order to know which data can be found on the respective systems. An external portal system is often used to correct this situation. An additional integration without which it would not work.

 

Another key disadvantage of using multiple systems concerns the user experience and therefore the efficiency of employees. Nowadays, employees are privately "spoiled" by excellent user experience. This is not the case in a heterogeneous system landscape. In the worst case, you will find systems with very different concepts. This makes it particularly difficult to familiarize new employees with the systems, making it expensive and time-consuming.

What does an ERP change?


If you take a look at modern ERP software, you will notice that the module interfaces, for example between Sales and Distribution, Material Management and Finance and Accounting, are from a single source. They come from the same manufacturer and together form an integrated system. This allows decisive advantages to be utilized:

 

  1. Specialist employees can now get a complete overview of the data and benefit from a consistent user experience
  2. Relevant information can be found much faster, as employees don't have to jump back and forth between different systems
  3. Data no longer needs to be stored twice and three times as it is stored centrally instead - at the single point of truth
  4. All company-wide information, such as business partner information, can also be accessed via an entry point (single point of entry)
  5. Even when implementing legal requirements, such as the 16% sales tax, you no longer have to chase after several providers and can instead enter into dialog directly with them

 

In addition to these advantages, there are many more, such as the reduction of administrative effort and the optimization of administrative processes. Pre-prepared reports can also be made available on a daily basis and "predictively" for the management and specialist departments via the cockpit. Sales staff have direct access to all customer data. Full cost transparency is ensured across all departments and functions, such as production, purchasing, merchandise management, travel management or human resources.

 

Further advantages lie above all in the ready-made and industry-specific default settings, which make implementation much easier for customers. Modern systems, including those in the cloud, can also be customized to meet specific customer requirements.

A modern ERP helps:


  • to be able to make quick decisions
  • Reduce costs from all areas of the company
  • Implement and automate new business processes

 

It is certainly not easy to find the "right" ERP product, as many small providers have launched corresponding solutions on the market. Another difficulty lies in the size of an ERP project. Since the implementation of an appropriate solution is always a larger project, the appropriate time should be left open for the decision. It often helps to involve external support in the software selection process. Not only to find the right solution for your own company, but also to get a fair price from the manufacturer.

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