ERP for a Company
This article will answer two core questions:
Why do companies need ERP?
How do enterprises plan ERP information systems?
The article will focus on answering the above two questions from three aspects: informationization determines enterprise development, the earlier informationization construction is better, and how to plan enterprise informationization:
1. Industry customized ERP is the first threshold for enterprises to enter informatization.
What can an ERP system tailored to one's own industry do for businesses?
Systematization of management system, division of roles in work division, procedural permission control, centralization of business, and one-stop output of financial data.
Simply put, it helps business managers comprehensively, quickly, accurately, and clearly grasp the following data:
Employee data: How many people are there;
Cost data: how much money was spent;
Business data: Who has done how much;
Revenue data: how much cash flow is generated on the books;
Profit data: how much money was actually earned.
ERP can summarize the above situations. On the basis of the summary, enterprise managers can then think about the following issues to further help enterprises make management and market decisions and maximize profits (let's take Internet advertising agencies as an example):
Are our personnel bloated, leading to a surplus of staff?
Are our costs too high to reduce procurement costs? Reduce labor costs?
Can our management still need to be optimized: Is the business process not clear enough, leading to mutual shirking and playing the ball? Is approval authority entangled in conflicts?
What key piece of data do we still lack: data that should be timely grasped or called has not been automatically presented, and we still need to make phone calls to ask questions?
Is there still room for improvement in sales or product profits: What are the products we sell well? Is it a concentrated optimization advantage product? Or choose to increase product profits?
We have thousands of media accounts consuming synchronously every month. Which accounts have abnormal consumption data? How can I filter out accounts with abnormal consumption and follow up in a timely manner?
The earlier a company builds an ERP, the lower the explicit and implicit costs in the later stages.
The core factors determining the cost of developing ERP are:
People. A suitable product development team is crucial, consisting of product managers, backend architects, frontend developers, and testing engineers. Without a suitable talent team, everything is negotiable.
Time. About 1.5 to 2 years, half a year to 1 year of first version development, half a year of internal testing, trial and error, and optimization, with half a year reserved for refactoring and development.
The integration cycle between the team and the system. It is also important to note that the earlier the team and ERP system are integrated, the more efficient it can be while greatly reducing the risk of being unable to cope with rapid business growth in the future.
How does enterprise management plan for ERP deployment?
Firstly, when will you install your own ERP system?
Because of the great differences in the industry, I will take the Internet advertising agency industry that I am most familiar with as an example. When a company has more than 15 employees and its revenue exceeds 50 million yuan, ERP informationization needs to be considered. (I personally led the sales and product team in the Internet advertising agency, and also followed up the net capital adjustment. I have a deep understanding of the future trouble caused by unclear accounts!)
Secondly, should we choose self-developed ERP or ERP for the leasing industry?
Self developed ERP, high investment, with independent intellectual property rights, but due to uncertainty in team building and product architecture, it carries significant risks;
Leasing ERP reduces investment costs and risks for enterprises, with small investment and significant benefits.
Thirdly, when the business grows rapidly, does my SaaS service provider have the ability to help me expand my SaaS ERP based structure to meet my business needs?
Business stability of SaaS service provider companies: SaaS service providers that specialize in vertical industries are the first choice;
SaaS service provider company personnel structure stability: The stable organizational structure and technical team of the software company ensure the sustainability of technical services.
The final conclusion:
1. The sustainable development of enterprises requires the support of an information platform based on ERP.
2. For small and medium-sized enterprises, finding a suitable industry SaaS ERP system, leasing it for use, and helping the enterprise quickly informationization and trial and error optimization with minimal cost is a "fast start, lowest cost" cost-effective choice.