What Factors Affect the Cost of ERP?

ERPEnterprise Resource Planning Enterprise resource planning system refers to a management platform that provides decision-making operation means for enterprise decision-makers and employees based on information technology and systematic management ideas.

erp software

ERP-Enterprise Resource Planning

Traditional ERP system is composed of different functions

The features of ERP software are:

The business application systems required by the enterprise's internal management mainly refer to core modules such as finance, logistics, and human resources.

The logistics management system uses the MRP management idea of the manufacturing industry; FMIS effectively implements modern basic financial management methods such as budget management, business evaluation, management accounting, and ABC cost aggregation methods; human resources management systems are used in organizational design, The pay system and human resources development also integrate advanced concepts.

ERP software is a company-wide, highly integrated system. Data is highly shared between business systems, and all source data need only be entered once in a certain system, ensuring data consistency.

The company's internal business processes and management processes were optimized, and the main business processes were automated.

Using the latest mainstream computer technology and architecture: B / S, INTERNET architecture, WINDOWS interface. It can be easily connected to the system where it can communicate.

Integration, advancement, unity, integrity, and openness.

The core purpose of ERP is to achieve

ERP software is a concept developed by the Gartner Group, describing the next generation of manufacturing

ERP has experienced four development stages so far

I. MRP system in the 1960s

MRP stands for Material Requirements Planning, which means

Practicality

In the practical application of ERP system, it is more important to reflect the essence of its "management tool".

Integration

The biggest feature of ERP is the integration of the entire enterprise information system, which is more functional than the traditional single system.

elasticity

Adopting a modular design method, the system itself can add new modules to support and integrate according to the needs of the enterprise, and improve the company's adaptability.

Centralized data storage

Integrate the data that was originally scattered across the company to make the data consistent and improve its accuracy.

Convenience

In an integrated environment, the information generated within the enterprise can be obtained and applied anywhere in the enterprise through the system.

Improve management performance

The ERP system will make the horizontal connection between parts effective and close, and improve management performance.

Increase organizational interaction

Through the ERP system to cooperate with the selected software network online trial and supply 45 million small and medium-sized enterprises to understand the management mode, so that enterprises and raw materials suppliers are closely integrated, increasing their market change capabilities. The customer relationship management model enables enterprises to fully grasp the arteries that the market needs, both of which help to promote the interactive development of relationships between enterprises and upstream and downstream.

Real-time and dynamic management

ERP is the integrated management of information for the entire enterprise, focusing on integrity, and the key to integrity is reflected in "real-time and dynamic management". "Cooperation", the management problem in real work, is also the problem of department coordination and position coordination, so the lack of "real-time dynamic management methods and management capabilities" ERP management is empty talk.

Comprehensiveness and timeliness of information

The key to ERP management is "informatization of real work", that is, to express the content and working methods of real work by means of informationization, because people's energy and ability are limited, and after real affairs reach a certain degree of complexity, People will inevitably make mistakes, and informatization of work content and work methods will form an information system for ERP management and only have reliable information management tools.

Features

One of the most important features of an ERP system is its functionality. In order to understand what functions your chosen system needs to handle, you first have to ask yourself, which is the most important area for you. If your ERP system is optimized for a large company and your company is a small business, then you need to find a system that better meets your special needs. Features are the foundation of a good ERP solution, and additional features are a reward. Focus on essential functions, while additional functions can be added while using.

Costs and expenses

This includes not only the initial purchase and implementation costs, but also some runtime costs such as maintenance, updates, additional user requirements, and so on.

Efficient data usage

An obvious advantage of ERP systems is the ability to efficiently access and use data. Although most data provides ample transaction processing, it is equally important that decision makers have easy access to the data. Timely and current information access ensures that critical decisions are based on the latest data.

Quick adoption

ERP systems should be easy for end users to use. It is critical that users not only become familiar with and adapt to these features, but also use them. ^[2]

erp software understand the market

The products on the ERP market are diverse. There are many differences, there are three grades of high, medium and low, corresponding to three prices. Enterprises need to investigate the maturity and versatility of the ERP system, and understand their grades and corresponding prices. Generally speaking, high-end ERP software is powerful. The software is suitable for a variety of environments, but it is difficult to implement, has a long cycle, and has high software and service costs. It is suitable for multinational groups, domestic large enterprises and enterprise groups. Complex, with the basic functions of ERP, each with a certain professional aspect, easy implementation, moderate software and service costs, suitable for small and medium-sized enterprises; low-end products, such products have insufficient functions, low prices, narrow application areas, and single business It is more suitable for large enterprises, and the operating environment is mostly microcomputer servers. When choosing ERP software, enterprises should adhere to the principle of "practical is the last word" and choose products that are suitable for them.

erp software complete

Enterprises must clarify their needs and try to choose a fully functional ERP system. Even if users do not use some functions temporarily, in the long run, with the development of the enterprise and the continuous expansion of the scale, there will be new requirements on the functions, and the ERP system should have strong compatibility to meet these requirements. As an enterprise management tool, the ERP system can integrate information from all departments and tightly control the operation of the enterprise. Perfect functions are the basic requirements. To truly implement the ERP system to replace the traditional management model, it is also necessary to choose an ERP system that supports OA and financial integration to truly realize modern management and information management.

erp software process is flexible

Different enterprises have different needs, but they must try their best to choose customizable ERP systems such as processes, interfaces, and reports. These characteristics are a guarantee to meet the needs of the enterprise. Because with the further application of the system, these characteristics are the basic guarantee for the long-term use of the enterprise. Each enterprise has its own industry division, so the process is different. The interface is the medium of human-computer interaction, the report is the output of printed documents, and so on. These aspects of customization are the basis for achieving the people-oriented nature of the enterprise. An important means to dominate the enterprise, not the enterprise or the system.

erp software high implementation success rate

Try to choose an ERP system with a high success rate. The high implementation success rate means that this ERP system has practical value, which is objective truth. If most companies in the market are using an ERP system, it also indicates that most companies agree with this system, and it also illustrates the maturity and practicability of the system. However, the actual situation of each enterprise is different. It is not possible to completely copy the choices of others blindly.

5.Various enterprise solutions

Try to choose an ERP system that can provide multiple enterprise solutions. Multiple schemes refer to the schemes for realizing enterprise processes and materials management. The system must be able to support multiple schemes in order to ensure that the management software has a value-based basis. The market is unpredictable, and companies need to have relevant departments and personnel to pay attention to market trends and adjust their plans and production in a timely manner. Therefore, ERP software providers should have the ability to cope with this change, and propose a variety of solutions for enterprises to choose.

erp software advanced technology

Advanced technology is the foundation on which users can benefit in the long term. Those softwares without a technical foundation as a guarantee often have a service life of only 2-3 years. For example, software written with VB and PB has basically entered the late phase of elimination. Because these softwares have no basic language, manufacturers and future systems no longer support it. Advanced languages, first of all, C / C ++, this is an absolute advantage. All operating systems, all large software, all databases, all are developed in C / C ++ without exception. The benefit of adopting an ERP system with advanced technology is that users do not need to increase investment in hardware.

erp software is easy to operate

The interface is the medium for human and machine interaction, so we should try to choose an ERP system with a more beautiful interface to improve work efficiency. The interface is beautiful, simple, and easy to use, which is the basis for improving efficiency. Imagine if the interface of the system is not real, the operation is not convenient, and it does not conform to the habits of normal people, it may have a great impact on the implementation process of the system. Therefore, this requirement is also essential.

erp software service

The purchase cost of an ERP system is very large. Therefore, it is necessary to carefully investigate and understand the service level of the provider in the early stage. After the system purchase, there should be corresponding after-sales guarantee, including maintenance, renewal, consulting, etc. Written materials in the form of articles, and signed and sealed by both parties have legal effect. Generally speaking, the pre-sales service level of a product cannot determine its after-sales service level. In order to avoid future differences and disputes, corresponding guarantees are required. In addition, try to choose an ERP system with a small amount of later services, which is a sign of practical value and mature technology, and it is also a basic guarantee for reducing user costs. The above has given attention to the selection of eight ERP systems. Based on these eight contents, the author gives ten major evaluation indicators for project selection for enterprise reference. The ten major evaluation indicators are: product brand positioning, product input cost, product function perfection, product service guarantee, product scalability, system interface and operation, product technology structure, product maturity, product solution and product compatibility Sex.