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When should medium and large businesses apply the ERP System?

June 3, 2021

The process of digital transformation with ERP in enterprises is still difficult due to many factors. Although they know that this is a lever to help businesses grow compared to competitors, they may still wonder when it is reasonable to deploy? This article will answer the above questions of businesses looking to implement ERP.

1. When should medium and large businesses apply the ERP System?

businesses should apply erp

1.1 When it takes a long time to process because the data is not uniform

Each department individually uses different management software such as accounting, human resources, and sales in each enterprise, which is the main cause of inconsistent data. Therefore, when they need data or reports, businesses take a long time to connect and synthesize.

In addition, the cost of integrating individual software is not small, and it is necessary to divide resources for management to easily cause overlapping work between departments.

1.2 When there are difficulties in management and evaluation

The management and evaluation of work performance are very important to measure the rate of return for the investment of resources. But most businesses have not been able to optimize this work, because the management and evaluation stages are fragmented.

In general, businesses will evaluate work and personnel performance by paper documents, or office software such as excel, word, .. with a variety of questions and manual screening to give results. This process takes a lot of effort and is often not really transparent. Not even effective if the assessment is not based on unambiguous statistical data.

1.3 When you are unsure about data accuracy

The reports show the volatility of the business, as well as the target results achieved. However, most departments use manual work for analysis and implementation. This makes the report unreliable, unclear, and difficult for the board of directors to grasp the overview.

If the report quality is not good, it will have a very heavy impact because it is difficult for business owners to make decisions about appropriate business and management strategies.

1.4 When it is not possible to see the report to make an immediate decision

How long does it take for you to analyze and view business reports? When working manually, you will spend a lot of time reading reports and summarizing from departments. Because each department will have its own system to update reports, it will be impossible for managers to make important decisions immediately when something goes wrong.

1.5 When you want your business to develop sustainably

Why do multinational corporations, large companies use ERP for management, and they develop sustainably over time? This proves that ERP is a total management solution, the operation stages are tight and controlled with each other. Businesses will feel secure when the scale grows significantly or you do not have to have a headache for the above reasons. ERP will help you do that.

2. How should I prioritize ERP implementation? 

erp reasonable implementation

Once the need for ERP implementation has been determined, how should businesses start implementing it?

First, businesses must find a consultant with enough practical experience to work side by side with ERP implementation. The implementation team needs to be knowledgeable about company policies, transformation processes, accounting, human resources, and business needs. This accounts for 50% of the success of the whole ERP project.

Next, businesses need to make an estimated budget and commit to persistently implementing the project with partners. Since successful ERP implementation takes time and financial resources to be achieved. On the contrary, when the enterprise is not sure to apply the ERP system, the failure rate from the beginning is very high.

In short, when the management encounters many problems and affects the business situation, it is time to find an ERP solution. Enterprises should experience each module first through partners like BEMO because that will make it easier to make implementation decisions.