What is ERP package? This is the question that many businesses ask when they have the intention to build an internal ERP package system. In this article, we will explain for you from the basic concept to the warnings when you want to develop ERP.
1. What is ERP package?
ERP for business – JLV enterprise
ERP package is famous as a “Enterprise Resource Planning” software that is a model of applying information technology into business management, data collection, storage, interpretation analysis. In addition, this includes many tools like:
- Product planning
- Cost production
- Delivery service
- Sales & marketing
- Treasury management
- Accounting
Moreover, ERP is also considered as the excellent business management software, and integrated with all functions, tools that businesses want in the process. Based on ERP, businesses are able to collect data, storage, information management, and evaluate business effectiveness easily.
In addition, due to the that that all functions, and modules are linked together into a general system, so different departments can access the flow of data, and it is never interrupted. This software is witnessed by huge companies in the world, when they can optimize and control their business activities as well as theri in-house staff.
Furthermore, we also introduce to you ERP package types on the market with 3 popular programmes such as:
- Microsoft Dynamics 365
- ERP Oracle
- ERP SAP Business One
For these 3 types, we will explain each type in the below after listing benefits of ERP package for business.
2. Benefits of ERP package
When it comes to ERP, there are many benefits that businesses can get:
- Increasing labor productivity:
This is a major benefit of Small Medium Business (SMB) that they can receive from the ERP package, because labor productivity affects businesses’ profits at all scales. With ERP, data business will be transparently and accurately shared among many departments in the organization, or helping each staff who can save up to the time of performing manual jobs, and avoid waiting time to receive information.
- Exact data source:
When businesses use ERP software, they will feel different at that time. Managers and employees will no longer get overwhelmed in reviewing skewed data. Moreover, checking inventory or finding a mistake in accounting becomes easier with ERP, simply because the information flow is constantly updated in real time, and connected together in a shared system. So, the automated reports are generated by ERP package programs that are more reliable.
- Improving the decision making process:
To make the right decision, the most important thing is that you must have full of necessary data, and especially the recently updated information. Therefore, ERP should be applied in the business’s system due to the fact that managers or employees will be more secure and confident in each choice they make. ERP will show them the better overall picture of the operation of business, and they can make decisions with ease in any cases such as crisis, changing,…
- Enhancing working environment:
With ERP package, the process of business will be streamlined with simple, flexible, convenient, user-friendly interfaces. Just one screen, users can access any information related to their own work. ERP supports business in every process from extracting reports , scheduling work, tracking history,… and helping staff’s work easier in order to enhance their productivity.
- Integrating process:
The goal and the biggest advantage of using ERP is that business can integrate all sepread processes into an unique ERP package feature. When businesses don’t use ERP package yet, they will get situations like data sharing, discrete storage, and they must pay and waste time a lot to summarize and connect the data. With ERP, the data will be focused on a system, easy to access, synthesize, as well as see the overview of business. So the ERP package will contribute to creating businesses’ profits.
This is just one of the benefits that the ERP package brings to business when they apply it, and it will be more useful if applied as fast as possible.
3. Three popular ERP package types
There are many ERP package types in the world that are applied by Japanese companies, and we will introduce one of them for you to know as below:
3.1. Microsoft Dynamics 365
Microsoft Dynamics 365 Platform – Source: Cosmo Consult
It is ERP software that belongs to Microsoft corporation, and which provides the CRM functions, ERP package features, or even businesses can customize more functions to support business processes include:
- Sales
- Service
- Customers’ service
- Operation
- Finance
- Maintenance
- Project management
- Marketing
Additionally, this software helps businesses work more efficiently includes:
- Building according to business requirements:
Because each function can be separated or connect together, so businesses can customize their demand. Now, it has published a Business and Enterprise version that helps businesses can apply with the company scale from 10 to thousands of employees.
- Gaining more efficiency:
When the software combines with business process applications and the Microsoft Office 365 tools, staff can both work with CRM tasks in Outlook and ERP duties in Excel.
- Work smart:
This helps business make decisions more efficiently via data, and if businesses can apply the combined tools like Microsoft Power BI, Cortana Intelligence, Azure Machine, or Dynamics 365 that will assist employees to transfer the amount of data into planning actions.
With Microsoft Dynamics 365, businesses can download to use on IOS, Android, and Window Phone. Furthermore, this can be used offline, so users can work without connecting data, and then the data will be synchronized after the connection is reestablished.
3.2. ERP Oracle
ERP Oracle – Source: Pinterest
ERP Oracle is a cloud platform that provides applications including finance, FMCG, Human resources, distribution, and production. It serves for various targets from small enterprises, SME to major companies. The main features of this include:
- Finance management
- Project management
- Ordering management
- CRM
- Production
- Planning logistic
- Report
- Smart business
And other features like:
- Real estate management
- Health and environment
- Commodity trading
- Product quality management
It is said that this software brings many benefits to business, when they apply for their system:
- Frequently update:
Oracle provides 2 times of updating each year to solve the problems during businesses’ usage, and enhance customers’ experience.
- Manage the entire work on the only database:
At present, businesses can manage all work on the only single database, which means that all departments’ data are connected in order to help BODs and BOMs who can control easier as well as more consistent work.
- Enhance security:
When using the software, businesses can make sure that their data is encrypted and isolated. This is one of the most important things if businesses want to apply an ERP system.
- Easy to integrate third party:
This allows businesses to integrate others software when in-house process needs, which is the interesting function for businesses when they have more processes in the future.
3.3. ERP SAP Business One
SAP Business One – Source: Suprenis
SAP Business One is suitable for many modules, and accounting, productions, retailing, distribution. Furthermore, this software is based on integrated cloud, so it is able to be applied for various sectors:
- Finance
- CRM
- Inventory management
- Sales
And all functions are operated in a system. Moreover, SAP Business One supports multi-currency transactions, and various languages for businesses over the world. In addition, the system provides a remote support platform that can perform many functions such as:
- Automated system health checks
- Scheduled database maintenance operations
- Qualified test upgrades
- Automatic error correction for the problem was discovered
Plus, when businesses select this platform, they can take major advantages include:
- Reducing order processing cost
- Calculation time for selling price
- Create more effective working environment for employees
- Provide information faster, more exact, and on time
- Bring effective management process, and it can meet the demand of each sector based on businesses’ requirements.
To be honest, ERP SAP is the software that is ranked in the world, so this will be suitable for Japanese companies. And for ERP SAP, your business can customize, or integrate the third party anytime.
4. Process of ERP package development
Regarding process of developing ERP package, we also want to introduce to you a little what a business should prepare for :
- Preparation for ERP:
This is the first step of any projects, and very important. At this stage, business owners should identify their goals and the expected outputs, and they have to find and select a real partner to develop the ERP system like BAP. Also, they must understand the basic knowledge of ERP like what is ERP package? How does it work?, and more.
- Planning for ERP package project:
After business can show out their partner for ERP solutions, then all of them sit together in order to evaluate the requirements, current resources,.. In this period, businesses should write the detailed process down to their partner so that they can understand and conduct the business’s plan exactly.
- ERP software testing and evaluation:
From this step, service providers will conduct to customize ERP according to the business’s given process. Usually, this customization is mainly about the report form, the order of information processing steps, the relationship amongst departments,…
- ERP package project evaluation:
For this stage, businesses will try the system on a small scale of ERP model that their partners propose in order for business whether they agree with it or not. Then, the internal staff will have training sessions about ERP software to adapt with it in their daily work.
- ERP package deployment:
After all above processes and getting approved from business, the ERP package will be used in the overall system. And each department will be trained about how to use it, and what they follow the steps in the system.
5. Why ERP package failed?
When developing ERP package, there are some cases that can fail. So we together should discover why the ERP package failed?, and from that we can draw lessons-learned for ERP projects in the future.
5.1. Unrealistic expectation
If businesses want to build the ERP with unrealistic expectations, the ability of ERP projects will get failed with the large percent. Furthermore, some ERP solution providers reduce cost and time for projects, this leads to business failure in ERP because they must get rid of some functions, and the payment increases.
So when business starts with a project, they should identify the important factors in advance that they want to apply for the business process to get successful.
5.2. Lack of executive management
Although BOMs and BODs get approved for the ERP project, their workload is big and they must have clearly plan for human resources to conduct ERP development:
- Time management
- Budget
- Project evaluation
Therefore, participation in management ensures the implementation of ERP projects that do not become a technological project and comply with the business strategy. When organizations use ERP to kick off the long-term digital strategy, they will realize the benefits such as their customers service that can be enhanced and get more competitive advantage
5.3. Too much custom software
Most ERP providers start with a project, they always expect that there is no much custom software but their customers always need to customize according to their requirements. These situations can become dangerous when they customize the unnecessary functions or the already standardized features.
5.4. Inexperienced resources
The integrated system and the ERP partners play the key role in developing business ERP projects, because if an ERP consultant does not understand business challenges, they can give business advice about what business should build in an ERP project, and how to make business understand and use the system with ease.
This is the knowledge of ERP package that we want to provide for you from the basic concept to the warnings of ERP failure. And if you want to build an ERP system in the near future, you can contact BAP as we are experienced in developing not only ERP, but also more technologies like Blockchain, Web service, Big Data, AI,… so we can advise you business with the best recommendations.
