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ERP Essentials for Business

Considering an ERP implementation at the initial stage of a business can be a bold decision and a smart one too. If the promoters have a clear-cut vision of their project, they can choose to invest in an ERP over any other intangible investment. ERP systems provide management with critical insights used in major decision-making processes. The earlier the organization starts digitizing its data, the easier things get. There are many more advantages to setting up the ERP software system during the startup process.  Download the price calculation for HashMicro software based on your business requirements and get a free HashMicro software demo and consultation with our business experts.


Table of Content

ERP Benefits for Business

Many important business processes can be streamlined in a better way such that it gets refined and digitizing becomes simpler. Resource planning for ERP can take done early on, which decreases the amount of rework or re-alignment of work that would company necessary if done later.

erp for business

A trial run of the ERP can also get incorporated in the early stages of the company, allowing any software issues to get identified and addressed before the data gets entered. Another advantage is that the business can also identify the shortfalls in planning for the ERP and take corrective actions for the same. Planning an ERP at the initial stages of a business can be very advantageous for the organization in the startup process.

Cloud-based ERP for Business

Whether to go for a conventional ERP or a new generation cloud-based ERP is the next step to discuss. A conventional ERP is quite expensive contributing to a considerable part of the capital expense of the startup. But it allows plenty of customizations and data security. A conventional ERP also requires investing in IT and human resources to maintain it within the organization. The updates and upgrades will be time-consuming and costly for on-premise ERPs. Cloud-based ERPs are trending in the market now as they cost much lesser compared to the on-premise ERPs. But the organization has to adapt to the process flow available in the ERP as minimal or no customization is available in cloud ERPs.

Because the resources or software get shared by multiple users, upgrades are often planned in such a way that the downtime of a cloud ERP gets kept to a minimum. Since the cloud ERPs are subscription-based, the cost will add to the operating expenses of the organization. However, the upside here is that if the company decides to stop utilizing Cloud ERP, all they have to do is unsubscribe, but with traditional ERP, the core software investment becomes lost.

Also read: 5 Effective Strategies to Manage Construction Equipment

Important Considerations When Choosing an ERP

Because the organization still in the early stages, the actual process flow may not be well defined, and the implementation cost factor must be carefully considered. Cloud-based ERPs are a trend now in the market and hence a great alternative to on-site ERP implementations. This is especially helpful for a startup organization since cloud ERP can streamline many processes of the business in the starting stage itself. By the time, the trial run is over and the organization enters the real market. The process and data will be available in-line.

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1. Choose from experienced players in the industry

Make sure the ERP vendors have experience in catering to the line of business directly related to the startup organization. This can help streamline the processes as the ERPs processes would have evolved over the experience with many clients. All existing government regulations like the tax, PF contribution, TDS filing, etc. will be available in existing software. Any new industry regulation imposed will be automatically added by the ERP vendor to comply with the government mandates as it affects all their clients.

2. Understand the business process

erp for business

The ERP must selected with the promoter(s) and an industry expert within the organization to achieve. The industry expert will know how the business works or the process flow involved. The promoters need to understand the importance of the ERP and agree to the cost incurred in investing in it.

3. Cost does matter

Though cloud-based ERPs are less expensive, they will be a considerable part of the operating expenses rather than the capital expenses. Choose an ERP that is feasible cost-wise also to the organization. With so much competition in ERP software solutions, it will not be a big issue in the startup stage. Otherwise, if the software needs changing at a later date with a less expensive version. The cost of moving, both in terms of money and time and resources, might seem prohibitively high.

4. Take only what your require.

Do not complicate the processes by subscribing to unnecessary modules of an ERP just because the vendor pushed it hard. The additional cost and resources should the company spend on improving use anyway, such as digital marketing and SEO (Search Engine Optimization).

5. Keep the ends open

While we the modules that is not necessary should not be subscribe to, the ERP should always able to manage more modules if we want later. For example, suppose an organization selects a manufacturing ERP and then decides to sell the same products that they manufacture. The sales or point-of-sale module can also integrated into applications. Keeping the ends open ensures that the ERPs can also adapt to the changing business processes.

Also read: 7 Main Benefits of ERP Software in the Wholesale Industry

6. Plan for the ERP

Whether cloud-based or on-premise, the ERP will require at least one specialized resource who will be in charge of managing the data and its security. For on-premise ERPs, a huge line of resources ranging from system engineers to network administrators and security administrators are required on the personnel front. IT resources such as the server, workstations, network equipment, and so on must also organize. But the ERP software and data secured and can customize to a great extent. For cloud-based ERPs, a maximum of one or two dedicated resources will be enough to handle the ERP in the organization. To gain access to the cloud-based ERP, only basic user training required. Since special skills not required for managing a cloud-based ERP, the resource will not cost too much.

Implementing the right ERP during the startup stage itself can be quite advantageous to businesses. Furthermore, HashMicro’s Constructuon ERP Software pricing scheme computation is required to assist you in gathering all information about the expenses of building software as well as the features in the demo. You can also choose the right ERP vendor after calculating the ERP software pricing scheme. Tell us about your type of business and industry and we will offer you the best business solutions


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