ERP Advisors Group: Introduction to ERP Systems

Enterprise Resource Planning (ERP) systems are defined as “connected business applications used to automate business processes and manage resource data across the entire enterprise.” In other words, ERP systems are a conceptual framework for how organizations can automate processes across an enterprise. These “frameworks” can come in many models, from an all-in-one application to multiple software solutions operating collectively to improve business processes

There are several reasons why an organization may look to implement an ERP. Many of those reasons relate to a business’s future ability to grow or automate processes for greater efficiency. Ineffective communication across channels and departments can create a lack of access to key information, reduced productivity, and increased errors in operations

Many companies find they lack data visibility, meaning that information from across departments is inaccessible and makes performing analytical reporting difficult. This lack of connectivity impacts the ability of an organization to operate and effectively deliver its product or service. As an organization grows, it may use a data warehouse or data lake for staging data from various applications, making it easier to create reports from data that is created in various software applications. This allows employees and executives to easily search for data they need at any given time in one location.

ERP systems can solve this problem by organizing all processes of the business under a single system, making it much easier to track.

Inaccessible information directly reduces productivity and value. Individuals across the organization cannot effectively produce if the processes across all departments are disorganized. Time spent organizing business transaction information into a usable format means less value-add time for the end or internal customers.

When a company implements a new solution to overcome reduced productivity, such as an upgraded ERP software for core financials, it allows them to better serve their clients by spending less time on traditionally manual processes, such as account reconciliation, paying invoices, or processing information.

Organizations can find themselves being inhibited by human error, whether that be incorrectly input orders or information that was not passed along through the proper channels. This is a common experience that can disrupt businesses.

Human error will always be present in business operations, but ERP systems can moderate the frequency in which it occurs. The automation provided by ERP systems types significantly reduces errors and provides a single source for information across the company. Internal control also provides a level of consistency, ensuring fewer people have access to vital information.

ERP systems can be an incredible tool, but we must remember that even technology has its limitations or myths surrounding it.

The most important thing to understand is that even after going live with a new ERP system, it cannot do everything for you. These systems can streamline your business and contribute to expansion, but human capital is still required to run the system and input data. An ERP cannot be expected to overhaul culture and habits. It will make things easier for leadership and employees, but it cannot improve processes independently from people.

In addition, ERP systems are not the same as CRM; however, they can possess features that act in similar ways to Customer Relationship Management tools. ERP systems are oriented toward processing transactions while a CRM tracks prospects, opportunities, pipelines, and customer history, and may provide tools for quoting and creating orders.

Many leaders who wish to implement ERP systems may look at the price tag and be discouraged. It is widely accepted that ERP systems can be too expensive for small companies. This is understandable, as many Tier One options can run upwards of $750k but have no fear! For small businesses, there are options in the Tier Three and Tier Four categories that not only have a lower price tag but will likely be a better fit for smaller-scale operations.

When discovering ERPs, also remember that one size does not fit all. What worked for your previous company, may not work for your current company. Put into perspective what the exact company needs are, and do not get blinded by the sparkle and shine of large systems.

While the reasons listed above can be indications that a company’s current system is not working for them, there are a number of reasons companies ultimately decide to dive into the world of ERP. The most common reasons found among executives are growth, legacy technology, regulatory purposes, and new leadership.

One of the biggest reasons companies implement a new ERP is because it provides opportunities for them to develop the optimal solution for the future state of the business while providing greater communication and connectivity. This future outlook allows them to identify the solution that will meet their needs in the long term, not just for where they are now.

When a company begins to experience substantial growth, it may find that its current way of operating does not fit its needs anymore. The expansion of operations can force an organization into a place where it needs a new system to automate its business with so many more transactions to track. New business lines, markets, products or services, and merger and acquisition activity can lead to growth beyond a company’s current software capabilities.

Many companies may feel content with their current ERP system but are confronted with the fact that their legacy technology is now outdated or obsolete. This happens when the technology is no longer supported, it is dependent upon outdated support resources, or it cannot accommodate integrations to outside systems like banks, eCommerce, or EDI.

Sometimes, the need to switch is initiated by new regulatory requirements. Accounting is a dynamic industry, where rules and laws constantly change. Companies may find themselves needing to comply with new accounting rules. A modern ERP can facilitate compliance with new regulations.

Finally, new leadership may see fit to automate manual processes or mandate a specific technology to achieve their vision of the company. This may come because of their previous experience at another company or future goals.

While these are some reasons a company may explore upgrading to a new ERP, it is important to remember that you should not change or implement software unless it is completely necessary.

The final step of this process will be the negotiations of the contract and pricing. When negotiations begin, always be willing to ask for a discount. Salespeople are willing to negotiate to close the deal, so do not be afraid to ask!


Software order forms will document the software you are purchasing, but it will always contain features you don’t need. By thoroughly reading the order form, you will be able to lower the final cost by omitting any software features your business doesn’t need.

Next in negotiations, always have a renewal cap. No one wants to be blindsided when it comes time to upgrade or renew with extreme costs. Also, consider asking for alternate payment terms. Most default terms ask for 100% payment within 30 days of signing, which can be unrealistic and binding for many businesses.

Finally, understand the full software agreements. With any contract, you want transparency and knowledge to protect and grow your business. Many people overlook the clauses regarding training, data migration, customizations, and integrations. These are key factors in an implementation, so make sure you cover all the price drivers

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Read Also: Why is Flutter a Good Choice for Cross-Platform App Development?

To reach a global audience, businesses need to focus on internationalization. Flutter makes this easy by offering strong support for localization and internationalization. With these features, businesses can quickly adapt their apps to different languages and regions. This helps them connect with more users and grow their app’s market potential.

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By choosing to hire a Flutter app developer, you can fully harness this powerful framework to build amazing applications that stand out in a crowded market. Using Flutter for your next mobile app can help you stay competitive in the fast-changing digital world.

ERP systems are complicated and can be confusing to even experienced professionals, but the right advisor can help you navigate these obstacles to select the right ERP. If you are confronting an ERP selection, or have any questions, reach out to our experts at ERP Advisors Group for a free consultation.