How Configurability Can Reduce the Cost of an ERP?
An Enterprise Resource Planning (ERP) Software selection is nothing like selecting an over-the-counter Accounting Software or choosing a platform for your new website. Once implemented the ERP becomes the backbone of any organization which supports and facilitates all the processes and transactions taking place in that organization. For an ERP Software to becomethe right fit for a business environment it mustmeet feasibility requirements from various angles like technology, functional fit, implementation time and methodology, training, ROI and equally important, the post implementation support.
But overtime it has been observed that there has been a widening gap between what the ERP vendors offer and what the user organizations require or put to use. In other words, big ERP vendors deliver more than what organizations can actually adopt or require. Studies have revealed that 20% features of any software are rarely used and 45% are never used.
Big ERP vendors have also earned a bad image of unnecessarily complicating simple processes thereby making them tedious and time consuming. As a result, ERP users prefer to skip using the ERP Software for trivial tasks and such transactions go unrecorded, putting a big question mark to the entire idea and intention of implementing an ERP Software in the first place.
ERP vendors stuff their brochures with endless features which might not be relevant at all, but the prospective customer becomes awestruck with these and might end up selecting a wrong ERP. Most of the ERPs are designed to cater to a wide variety of business types and hence only a few features are really relevant to a particular industry while the remaining only increase the cost and hassle. Lot Tracking might be a necessity in the Perishable Goods Industry but might be only an augmentation in the Apparel Industry. Similarly,Product Formulation and its security is a must for Chemical and Cosmetics Industry but may not be relevant for other industries.
To address this situation leading ERP Solutions like ebizframe have adopted the configurability approach towards feature selection which lets the customer select the features they want, in a Check-The-Checkbox manner. This approach reduces the size and the time of implementation of an ERP Suite manifold. Not only implementation time, ebizframe ERP also provides users the ability and facility to skip unwanted processes which are not required currently. But these functionalities remain with the ERP System and can be used whenever the organization expands in the future. This makes ebizframe ERP the most scalable ERP in the true sense.
It’s time that ERP vendors realized that one-size-fits-all approach is not feasible and not all customers need to pay for that one size. ERP vendors must ensure that their ERP Solution is highly configurable and does not complicate simple processes. Ultimately, ERP Solutions should serve the purpose of making processes simpler and effective rather than otherwise.
Harshit is a PGDM in Marketing and a B. Tech. in Information Technology. He started his carrier with Eastern Software Systems as a Marketing & Communications Executive and has over the years evolved into a seasoned marketing professional with expertise in Digital Marketing, Conventional Marketing and Social Media Marketing. Harshit loves cooking and is always eager to create unique culinary for his friends.