In the face of ever changing business conditions in Nigeria and around the world, organizations are under increasing pressure to reduce costs and meet tougher performance standards. A powerful solution is thus needed to ensure optimal Return on Investment in their operational resources.
What is an ERP system?
ERP (Enterprise Resource Planning) is the IT industry led term for an integrated suite of enterprise software modules, forming a UNIFIED system, which an organization uses to manage various critical parts of her business.
An ERP system integrates all facets of an organization’s operations such as development, manufacturing, sales and marketing, finance and human resources (HR) with common modules including those for product planning, material purchasing, inventory control, distribution, accounting, marketing, customer relationship management(CRM) and business Intelligence(BI).
ERP systems make it possible for data to move back and forth from various business functions and link them together. ERP systems collect shared transaction information from various sources and serve as a specific point of truth to assure integrity of data while eliminating duplicate data.
How are routine business processes for an organization, such project management, manufacturing, accounting, and finance, managed by an ERP? ERPs are extensive, interconnected systems that control every aspect of a production or distribution company off either on-site or cloud hosted solution, making the entire processes user-accessible to all stakeholders. These integrated solutions can be used by numerous departments and act as the central hub for all processes and information within the company. All organizations irrespective of size and industry segment can benefit from several features offered by a right fit and well implemented ERP solution.
A right fit ERP system which may be on premise or cloud hosted, seamlessly integrates internal and external management information across the entire enterprise to facilitate the smooth flow of information off a central repository. It achieves unequalled speed, visibility and enablement throughout an organization and represents a strategic choice for developing competitiveness.
Generic vs. Industry-Specific ERP: What’s the Difference?
ERP providers originally created generic systems that could enhance business areas & procedures across numerous sectors. Their software gained wide appeal by emphasizing fundamental features like finance, reporting, and business intelligence (BI). However, as ERP technology advanced, some businesses discovered that the standardized ERP solutions they are purchasing couldn’t provide the specialized capabilities they needed on a consistent basis.
Through adaptations and/or various system integrations, generic ERP suppliers attempted to address this challenge, but doing so simply raised deployment costs and made ERP systems more difficult to administer.
Some technology vendors decided to diversify into industry-specific ERP software to offer an outlay option to general systems. These systems offer industry specific capabilities for their target industries in a near “plug and play” structure, going beyond general functionalities to providing specialized functionalities that meets the peculiar needs of that industry thus offering tangible benefits and faster ROI.
What Are the Benefits of Choosing Industry-Specific ERP Software?
Currently, 67% of executives pick a sector-specific software when choosing a new ERP system, for a variety of factors in addition to the advantages of ERP software. Why you may ask? Because the main benefit of selecting an industry-specific ERP is that it can solve unique industry pain issues while streamlining your business processes out of the box, which is more than can be said for generic solutions.
Other benefits and advantages of choosing an Industry specific ERP software include:
- Simpler implementation: ERP software designed for a particular industry already has the specialized functionality required by your company, negating the need for labor-intensive changes. To further decrease IT scope, several industry-specific ERP solution vendors include additional crucial business systems in their portfolio of products.
- Less expensive to implement: Plug-and-play software is more cost-effective than a custom solution. Generic solutions, albeit initially less expensive, can end up costing more as you start adding more features or buying several systems to acquire the capability you require. You may have the best of both worlds with an industry-specific ERP solution, which lowers total cost of ownership without compromising functionality.
- Technology providers who comprehend your requirements: ERP software must bring about a positive change, but this transformation can take different forms in different industries. Technology providers who specialize in a certain sector will be familiar with your issues and share your objectives.
- Common industry best practices: A technology vendor that specializes in your business will put all of their work into creating and enhancing the solution. In accordance with industry norms and standards, the finest industry-specific ERP technology is continually improved. Additionally, you gain access to the knowledge of other clients in your industry as vendors pick up relevant value adding knowledge from previous projects and users.
Will an Industry-Specific ERP Enhance My Return on Investment?
Finding the optimal solution for your requirements is ultimately key to a successful ERP implementation. Because the functionality of an industry-specific ERP has been developed for the needs and problems of your industry, it can provide a better fit. This means that, compared to general ERP solutions, industry-specific ERP software frequently enables businesses to realize ROI more quickly.
It’s not a surefire approach to get a quick return on investment, though, to choose industry-specific ERP software. The technology provider you select and the knowledge they offer will have a significant impact on how quickly you realize ROI.