Select ERP wisely through these 6 Golden Steps to ERP selection:

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Buying ERP is a common trend with small and medium businesses. However decision makers are often confused as to which ERP they should buy, what is the difference between SAP and ERP, should we build our own ERP, buy branded ERP or local ERP etc.

This topic has many dimensions and is difficult to answer for any particular industry. However you cannot go wrong if you follow these 6 Golden Steps during decision making:

1. Budgeting – ERP or a white elephant?

ERP can become a white elephant or extremely expensive if not budgeted properly. Budget should consider two components – One time buying cost such as hardware, license, implementation etc and another is recurring cost such as customisation, report development, additional licenses etc. One should consider these two costs and not just one time cost. This can help in deciding options such as on-premise server bases ERP vs cloud based ERP etc.

2. SAP vs other ERP

SAP is world’s no 1 ERP product. It is the most popular ERP among all top global and Indian companies with largest functionalities. But in spite of all good things, SAP is not for everyone. Explanation for this is too lengthy to write here. In short, it needs skilled human and financial resources to implement and maintain it. I would strongly recommend to take this decision with the help of SAP professionals.

3. Are branded ERP not for SMEs?

Are Branded low priced ERP available? – the answer is Yes. E.g. SAP has another ERP product SAP B1. This is much more cost effective and a useful SAP product specially designed for SMEs. Similarly Microsoft has an ERP called Navision specifically designed for SMEs.

4. Are Indian ERPs not good enough?

Are local good Indian ERPs available? – Yes. This is the area where one should be really careful. There are many ERPs available and most local ERP products are developed for niche markets such as Manufacturing, Real Estate, Infrastructure etc. Most important part is to check credibility of such ERPs from their existing clients on various parameters – coverage of functionality, tax compliance, post implementation support, customer base, customer testimonial, background of the company, etc. There are good Indian IT companies having ERP products for SMEs such as TCS, Ramco etc.

5. Confused with ERP features?

In recent years ERP has evolved into a feature rich product such as dashboard, workflow approval system, document management system etc. Hence compare all features while deciding ERP. Take help of neutral Subject matter experts who are not selling any ERP.

6. Let’s build our own ERP

Should we create our own ERP?

NO – avoid creating your own ERP if your core business is something else. Creating ERP is a very intense process and can divert your attention from core business. Instead buy time tested ERP and if necessary integrate it with products, such as Microsoft’s SharePoint, to make it really useful.

There is much more than these 6 Golden Steps before making the final choice of the perfect ERP system.

Call us on ‭+91 93213 27575‬ or mail us on sales@bigbangconsultancy.com to get detailed advice on ERP selection.


 

To keep Tally or ERP or both?

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Tally is one of the most popular accounting softwares in India. Small and medium enterprises (SME)s just can’t think accounting without Tally.

Whenever organisations are deciding to buy ERP, common doubt is whether to keep Tally after ERP Or keep both ERP and Tally?

Straight answer to this question is ‘keep either ERP or Tally but not both. Avoid running two systems’.

However this answer is not sufficient to address anxiety of Tally users.

So let’s analyse as to why this answer is no and what are the alternatives if anyone still insists on Tally along with ERP?

Try to understand the main real purpose of any ERP. ERP is a decision making system based on a single database. For business owners, the most important decisions often are related to finance.

E.g. most important information is cash inflow and outflow. Inflow is triggered mainly through Sales and outflow through purchasing of material or services.

In Tally the data feeding for Voluminous transactions for Sales and Purchase, such as invoices/cheques, Vendor bills etc, are entered manually and hence its time consuming. It affects decision making.

Whereas ERP has the capability to automate this complex process from its original source of transaction and thus MIS gets generated instantly. This can help management to take important business decisions quickly.

So the best option is to have ERP with built-in Accouting system.

So what if, someone still requires Tally with ERP. There are few ERP systems, which are tightly integrated with Tally. But in such ERP systems one should ensure no direct access to Tally. Data should flow to Tally only through ERP and use Tally for MIS purpose.

Don’t buy ERP randomly and never try to build ERP.

Why so and what are the guidelines to buy ERP? Read my next blog to get these answers.