Are you considering investing in an enterprise resource planning software solution? The rapidly evolving ERP market can create some confusion for those intrigued at the capabilities and potential that an ERP solution brings to an organization.
Need some answers? Here are 5 FAQs on enterprise resource planning software.
1. What’s the difference between ERP and CRM software?
ERP software like Acumatica Cloud ERP is designed to integrate data and foster transparency among core functional areas. ERPs provide a single source of truth for finance, warehouse, production, operations, HR, customer service and other areas of a business. A CRM is used to automate and integrate sales and marketing functions, collecting contact information, outreach and responses by customers and prospects.
Increasingly, ERP manufacturers are integrating (either directly or via an API) with CRM products, giving users a 360-degree perspective on customers, more data sharing and improved collaboration. Integrated solutions mean less manual data entry, fewer errors, a single source of data, and more efficient reporting and decision-making.
2. How much does it cost to invest in ERP?
The cost of an ERP depends greatly on the customer’s size, needs and preferences. In many cases, customers can choose to have either an on-premises or cloud-based ERP. Cloud-based options usually are delivered via a subscription model where customers pay per user or module. There are usually other costs for licensing, maintenance (for on-premises or hybrid options), customization and training to factor into the total cost of ownership.
Many companies find it makes sense to use an ERP selection consultant like NexTec Group, which can provide impartial comparisons and insights on multiple ERP vendors. ERP selection consultants can often leverage vendor relationships to save customers significantly.
3. Who uses ERP software?
While its name implies that ERP is used only by enterprise organizations, many small and midsized businesses are realizing significant gains by using ERPs. Niche ERPs, especially those created for particular industries or sectors, have become more prevalent in recent years, allowing more companies to take advantage of all the benefits that ERPs offer.
Companies that are seeking digital transformation of their business models, business processes or work functions often turn to an ERP. By providing a unified, integrated and transparent pool of data, reports and analytics, ERPs can be leveraged to take advantage of new technologies. ERPs are increasingly using and supporting solutions rooted in automation, machine learning, cloud technology, the Internet of Things, business intelligence and analytics.
4. What are the major benefits of using an ERP?
- Scalability. As your business needs evolve and more customers and data points need to be tracked, your ERP can grow with you.
- Self-Service. There’s no software to update, maintain and secure at your company. Cloud ERP solutions are updated automatically and monitored by sophisticated digital and physical protections.
- Data Backup. Automate data backups with an ERP, which means rapid recovery and operational normalcy in the event of an incident such as a natural disaster, power loss or cyberattack.
5. Who provides ERP selection advisory services?
At NexTec, we deliver experience and expertise for core business software selection, implementation and optimization. Our consultations are ready to guide you through the ERP deployment process, from understanding your unique business needs to helping your users get the most out of your investment.