Epicor Software Corporation
Epicor is a global leader dedicated to providing integrated enterprise resource planning (ERP), customer relationship management (CRM), supply chain management…
Find Articles
ERP now more important than ever
A recent Accenture study showed that 76 per cent of the UK and North American senior IT professionals surveyed believe that enterprise systems contribute to their organisation’s competitive advantage and provide strategic value. Especially in today’s economic downturn, companies are taking a serious look at the way they review, buy and deploy technology to identify ways in which they can improve efficiency and streamline costs.
Enterprise Resource Planning (ERP) is a mainstay of any company’s technology stack – it’s literally the engine behind the business, linking information and systems together for accuracy and integral sharing. So why is it that so many UK companies still have such a long way to go when it comes to getting value from their ERP software?
When it comes to evaluating your existing ERP system recognising the opportunity for improvement in the first instance is important. One of the main challenges that companies need to overcome is the traditional and outdated view of ERP systems as inflexible, costly and difficult to implement. Over-ambitious targets, poor project management and insufficient attention to the cultural changes required can all inhibit business improvement. ERP systems are complex yet sensitive to flaws in the change management process. Some projects suffer from a lack of business consultants with the relevant experience who can ensure that IT is being utilised as effectively as possible. Crucial to the delicate balance of successful ERP utilisation is the management of the core business processes that they support, which is a key enabler when it comes to a company distinguishing its offerings from those of its competitors.
So what makes an efficient ERP system? Ideally, a fully automated ERP system enables straight through processing (STP) where humans are only required to react if something unusual is detected. An automated system allows employees to just focus on the processes that cannot be automated, or are high value and will benefit from the personal touch. However, many ERP systems today still insist on manual intervention as human intuition makes people mistrustful of automation.
A classic example of an inefficient automated system is insurance claim processing – 99 percent of claims could be processed automatically yet most still have employees review and approve every claim. Make-to-order environments automated by ERP software run effectively because the system knows how to make the Bill of Material (BOM) which negates employees from having to check each order: instead, they can focus on the unique, high value orders. The question is, with the system capable of such high work rates of accuracy and efficiency, can we move perception forward to a more trusting level, or should IT managers be concentrating on harnessing other capabilities of the ERP system and finding their efficiencies there?
To make the most of ‘what you’ve got’, and pinpoint where the system can be the most helpful bearing in mind the corporate state of mind, or culture of a business, ERP solutions need to be maximised and truly understood by those manipulating them. Legacy systems may need updating to ensure they are aligned with the needs of the business. In many instances, the IT department does not understand the power of its software. With the right business process consultants and the software resources in place, companies can consider for example, sharpening their sales programmes to add revenue, or adapting logistics processes to speed up delivery cycles. In addition, modern technology such as service oriented architectures can automate and thereby vastly improve interactions with suppliers, partners and customers.
ERP systems, when deployed and managed successfully, allow a group to work effectively, running supply chain, inventory and distribution globally. Modern ERP comprises a set of core modules, typically business intelligence, customer relationship management, financial management, human capital management, manufacturing operations and supply chain management. ERP systems, such as Epicor 9 which was launched late last year, are more mature and agile and can overcome many of the barriers to business. The software package is part of a whole new generation of business applications that is redefining how systems are built, and used. The aim is now for business management to be virtualised, always on, and run anywhere. The Epicor Everywhere framework means the user interface can be anything from a windows PC, or a web browser to a mobile device.
Next generation ERP systems need to overcome the barriers that still exist in many industries when it comes to utilising the benefits of Web 2.0 and social networking. In the same way that everyone uses Facebook and Twitter, SOA and Web 2.0 should be considered as key building blocks that enable adaptability and collaboration among people in business environments. The collaborative environment provided by these everyday social media tools can easily be applied to business-to-business technology supporting product design, delivery updates that are integrated into customers’ supply planning tools and many other benefits. Consumerisation in order to engender understanding is one of the most natural ways forward.
ERP vendors are starting to offer new software packages that are helping to dispel some of the negative perceptions surrounding ERP systems. Inside-ERP, a guide to mid-market solutions published by Tippit, notes that vendors are reducing complexity. It says: “Vendors have made ERP solutions easier to use and simpler to implement as well as reducing the amount of customisation needed to fit the business, namely by adding features that support certain aspects of businesses that are common to mid-size organisations in a given industry. For instance, an ERP system tailored to the fashion industry should use matrices specific to apparel, such as sizes, colors and styles.”
Adam Prince, Senior Director of Product Marketing at Epicor believes that smart businesses are recognising that investing in IT can deliver a considerable return on investment, when installed properly and supported by a partner who has a thorough knowledge of their business: “Epicor has noticed a significant increase in the number of consulting projects it has sold over the last six months. Companies are clearly seeking ways to maximise the benefits from their existing software, whether by adding on new software modules or making the most of the computing power they already have.”
Tell us your news:
If you have industry related software news that you would like to have published, please use this submission service to have your news considered for publication
