Implementation of an ERP system: what are the benefits of automating business management ERP-SYSTEM

Managers and even the leaders of many commercial companies often use the term ERP as a continuation and almost a synonym for the term CRM. They even consider ERP systems for enterprise resource planning (from the point English Enterprise Resource Planning System) as a form of CRM systems for sales automation. In fact, the introduction of ERP-systems changes not only the principles of working with clients but the whole philosophy of doing business and the principles of company management. Implementation of an ERP system is not just a step in development, it is a digital leap in business transformation.

It is wrongful to draw parallels between ERP-systems, programs for accounting automation, or CRM-solutions. As the introduction of an ERP-system involves the automation and synchronization of absolutely all business processes and resources of the company, rather than focusing on a specific field of activity, such as accounting or sales .

A full-fledged ERP system should include a CRM solution, an accounting module, and other information systems that provide personnel, warehouse and financial accounting.

This includes control of production processes, optimization of work with suppliers, and a systematic approach to logistics, and much more. ERP-system provides management of absolutely all assets and resources, regardless of their value and location.

This allows you to use ERP-systems to automate the work of both commercial companies focused on the sale of goods and the provision of services, as well as large organizations and corporations in the field of production, banking, government, education, medicine, insurance, energy or finance. The implementation of ERP systems is especially effective when there are different legal entities and taxation schemes, separate bank accounts and national representations, areas of activity, and management principles in one company or holding.

Implementation of the ERP-system allows you to synchronize accounting in terms of using different currencies, languages, ​​and national standards. At the same time, the differentiation of access rights to a server or cloud ERP system through a web interface or a mobile application allows increasing the efficiency and qualification of all personnel, and not just top management and business owners.

Modular principle

What is an ERP system? Modular principle

In a simplified form, an ERP system can be described as a software package that includes 3 key components.

  • The core of the program is a platform which architecture complies with the company’s activity patterns. In most cases, the program structure of an ERP system, where the basic functions and principles of element interaction are specified, are created after analyzing the market and the activities of a particular company.There are boxed versions and even freely distributed versions of ERP-systems, but all of them describe a more or less universal or specific business model, and in most cases require serious configuration and refinement.
  • Databases are large amounts of information (BigData) in the cloud storage or on the server, which contains various commercial and organizational information. This includes not only raw information in the form of data arrays of lists of customers or contractors, company employees, or goods in stock, but also software and hardware that provide effective management and uninterrupted storage of this information.
  • Functional modules are software elements that implement the functionality of an ERP system. It is in the form of modules in ERP-systems that accounting, financial and personnel subprograms, CRM-solutions, modules of warehouse and production accounting, etc. are presented. Interaction within the system occurs through transactions, and therefore the same event can be immediately taken into account by different functional modules – accounting, human resources, sales, warehouse. This minimizes errors that arise due to the lack of synchronization of information.

Thus, the implementation of an ERP system makes it possible to monitor all business processes of an enterprise in real time. The functionality of the program is determined by the number and name of the modules used. In addition, the modular principle allows you to implement individual functions of an ERP system in stages and even combine and integrate software components of different developers in one system. To do this, apply solutions that provide interaction with the system through different data transmission channels – low-level solutions for database synchronization, web protocols, interaction through instant messengers, telephony, secure financial transactions, etc.

Function modules

What components can an ERP system include? Function modules

Functional modules of an ERP system can be internal or external and include both tools for controlling resources (warehouse, finance, personnel), and solutions for customers (personal accounts on the company’s website, e-commerce solutions, etc.). Ideally, access to the system is obtained by everyone who formally interacts with the company both as a staff and as a counterparty or client.

Traditionally, 3 groups of functional modules providing financial, personnel, and operational accounting are distinguished as part of ERP systems.

  • Financial modules – it’s the main part of the program, which launches the implementation of the ERP-system. This includes software solutions for accounting, financial control, and business strategies. All payment documents for crediting funds and payment pass through the ERP system, production accounting and costing of goods are kept here. Investment attractiveness and financial risks are assessed.
  • Personnel modules relate to all personnel management issues, including payroll, professional skills, time spent, and employee efficiency. Thus, issues of career growth, advanced training, accrual of salaries and pensions, accounting for business trips, and bonuses are automatic. Recruiting and training staff, as well as evaluating productivity and effectiveness, can be presented by subjective opinions, but dry figures and visual graphs.
  • Operational modules include control over all processes related to logistics, production, service, and marketing. The issues of supply, interaction with suppliers and customers, warehouse management, equipment maintenance, order processing, distribution are also solved automatically through the implementation of an integrated ERP-system. Moreover, operational control is related not only to the interaction at the product level but also the ability, say, to change the specification or formulation of production technology.

As a result, the implementation of an ERP system implies the integration of several software components that can exist separately. These are CRM systems (Customer Relationship Management) for managing customer relationships, and PPM systems (Project portfolio management) for managing a portfolio of projects, and PLM systems (Product Lifecycle Management) for monitoring the product life cycle, and MES systems (Manufacturing Execution System) production management, and SCM-systems (Supply Chain Management) supply management and much, much more.

Benefits of ERP Systems

How company will benefit from the implementation of an ERP system Benefits of ERP Systems

The major benefit from ERP system implementation for business is maximisation of company management effectivness. Data on all resources and interactions will allow:

  • Get access to all financial information;
  • evaluate the performance of employees and entire departments;
  • check the reliability and responsibility of counterparties;
  • minimize the number of problems caused by the human factor;
  • quickly change production technologies and supply chains;
  • respond to changing market conditions and legislation;
  • improve customer service and employee satisfaction;
  • reduce operating costs, optimize inventory, etc.

Moreover, as already mentioned, this applies not only to top management. For example, a sales employee who has gained access to an ERP system will also be able to see, the entire history of a customer relationship and know the goods left in the stock.

As a result, he will be able to independently make decisions in the field of management and, for example, refuse to sell without a 100% prepayment of a valuable product to a client with a bad credit history. But without problems, he will write similar documents for payment to a reliable and trusted client, the status of which will be indicated in a personal card in the ERP system.

Thus, it becomes clear that the full implementation of the ERP-system is impossible without deep and proper training for all its users.

Development stages

How is an ERP system developed Development stages

The implementation of an ERP system implies the creation of a software solution, the development cycle of which meets the general principles of software development. The process can be divided into the following stages:

  • market analysis and research of business processes;
  • statement of technical specifications, visualization, and prototyping of the system;
  • creation of a browser and mobile graphical interface;
  • development of the program core and functional modules;
  • testing and quality assurance of the program;
  • installation and filling of the ERP system;
  • implementation – staff training and technical support.


Why should you entrust the implementation of an ERP system to us? AVADA MEDIA

Avada Media already has experience implementing business automation systems for customers from various industries. For example, our development – a system for developers “NOVOSTROY” adjust part of the functionality of the ERP-system to the needs of a commercial company in the field of construction and sale of real estate.

This solution allows you to automatically synchronize data on real estate, clients, realtors, and all the necessary documents for sale.

Data on the status change of the selected object is transmitted without delay to any client or manager and can be displayed on the web and on mobile devices.

Avada Media also completed similar projects for customers in the field of tourism, restaurant business, taxi services, utilities, etc. More details on projects can be found in the corresponding section. The term of the ERP-system implementation depends on the solution’s scale of functionality and is at least 3-6 months.

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