7 Steps to Driving Total Business Value Using an ERP System

Last week Sage organized a webcast  to discuss “7 Steps to Driving Total Business Value Using an ERP System.�

The webcast provided companies looking for an ERP system with a number of tips on how to evaluate ERP systems, and how to ensure your implementation is successful after you select your ERP. If you have outgrown your current financial software, it’s definitely worthwhile to view this recorded webcast.

At the end of the webcast we opened the phone for questions. There were a lot of very good and interesting questions. I’ll provide answers to some of the most frequently asked questions in this blog:

1. What is ERP?
   ERP stands for “enterprise resource planning,â€�  however, today this term is often used for any software that companies use to run their operations, including financial, operational, warehousing, HR/payroll. This is also often referred to as the “back officeâ€� – those processes internal to the company (i.e., not customer facing).You will also hear the term CRM a lot – which stands for customer relationship management. This is software used to automate the “front officeâ€� – any customer facing activity such as sales, marketing and support/service. Many vendors, including Sage, now consider CRM to be a part of ERP and provide fully integrated solutions that can automate a company “end to end.â€�
2. How do I determine if I will really benefit from upgrading to an ERP system? Are we big enough, will I really benefit from ERP?
   This question was asked a lot by attendees that today use software such as Peachtree, Simply Accounting or QuickBooks, and whose business has grown. The best answer to this question is to talk to either an independent consultant or a value added reseller of ERP solutions such as Sage ERP. They will work with you to determine what your current and future requirements are, determine what ERP software would be the best fit, and then compare the cost to the expected benefits. Before starting this journey, you can consider a few tell-tale signs that you have outgrown your current software. Some of these include:
   1. Your volume of business has increased over the last few years, and you spend more time looking at the hourglass waiting for your software to finish a task then you do entering data.
   2. You have a number of different software packages that all manage a different part of your business, rather than one integrated solution that would give you a “single view� of your business.
   3. You are changing your business processes to work around the limitations of your software, rather than adapting the software to how you want to run your business.
3. I am using Peachtree today. In your view what is the next step up into moving from that type of system to an ERP system?
   Again, your best bet is to engage with a consultant to determine what system best suits your needs. However, within Sage’s portfolio, the majority of customers that upgrade from Peachtree to an ERP system are moving to either Sage MAS 90, Sage MAS 200, or Sage ERP Accpac.
4. Is it important to choose a software solution that is configurable & scalable for future business expansion?
   Absolutely. When you are investing in an ERP solution, you are starting a journey that will last many years. You need to make sure that your software can grow with you as your business grows (this is the “scalable� part) and can adept to your business as your business and processes change (this is the “configurable� part). Predicting the future isn’t easy, but you should look at products and vendors that support companies that are in the same industry as you, and are ideally larger than your current business – this will give you a good idea how the software can grow with you.

Selecting the right ERP software is a task that shouldn’t be taken lightly. A great start is to follow the “7 steps� described by Eric Kimberling in the webcast. And when you are ready for the ERP journey,  engage with the right consultant to help you in your selection process and implementation.

By following these step your ERP system can have a very positive impact on your bottom line.

View the recorded webcast to learn more.

Related articles

• Navigating ERP’s “Bermuda Triangle”
• Is Your Small Business Ready for ERP?

About the Author

Erik Kaas is director of product management for Mid-Market ERP products at Sage. He is responsible for managing the product line life-cycle from strategic planning to tactical activities. Erik manages a team of product managers responsible for specifying market requirements for current and future products.