10 most FAQ about ERP Functionality
Joris Teulings
I accelerate business performance with cloud ERP solutions. Innovation, “out-of-the-box”, Social Impact and Sustainability ? | NetSuite | Kiwanis Oss #letsconnect
An ERP system is a complex and integrated software solution that automates and streamlines business processes. It is critical that the standard functionalities of an ERP system match an organization's business needs, otherwise this can lead to inefficiency, delays, errors and increased costs. When an ERP system does not meet the needs of an organization, custom solutions may be required, which entails additional costs and delays.
To find the best solution that fits business needs and objectives, a thorough evaluation of available ERP systems and their functions and capabilities is essential. Users of ERP systems often have questions and concerns about the functionality of the system.
The 10 most frequently asked questions are:
In order to ensure seamless and efficient business processes, ERP configurations can be customized and integrated with existing systems.
ERP users need an ERP system with the right functionality to support their business processes.
Most ERP systems are designed to be customized to an organization's needs. They are designed to streamline and automate business processes, increasing an organization's efficiency and productivity. You can customize the system configuration and integrate with your existing systems to ensure seamless and efficient business processes. Numerous add-ons and modules are available that can provide additional functionality to your ERP system, depending on your specific needs. Modern ERP systems are generally user-friendly and provide an intuitive interface for employees.
It is important to choose an ERP system that can grow with your organization. A scalable ERP system prevents additional costs in the future when upgrading the system. Most ERP vendors regularly provide updates and new features to meet changing customer needs. To keep you well informed, they publish release notes with the changes they have made. This ensures that users are reassured that the ERP system is suitable for their business needs and that they have the right functionality and capabilities to ensure efficient and successful business processes.
Benefits of focusing on standard functionality
Having standard functionalities means that the ERP system is already equipped with the tools needed to run day-to-day business activities. This reduces the need for custom solutions and additional costs associated with them. In addition, having standard functionalities ensures a faster implementation of the ERP system, which in turn contributes to a faster ROI.
Having standard functionalities can also contribute to the security of an ERP system
Standard functionalities are also important for user experience and user adoption. When an ERP system contains sufficient standard functionalities, it becomes easier for employees to use and understand the system. This reduces the need for extensive training and support, which in turn contributes to higher user adoption. In addition, the availability of standard functionalities ensures that organizations can quickly respond to changes in the market and in business operations. When an ERP system contains enough standard functionalities, the organization can quickly and easily implement and adapt new business processes, without the need for additional development work.
Having standard functionalities can also contribute to the security of an ERP system. ERP vendors ensure that their standard functionality meets security standards and requirements. This means that organizations that use these standard functionalities automatically comply with security requirements, which in turn contributes to the reliability of the system.
Finally, having standard functionalities can improve the interoperability of an organization. Standard functionality ensures that ERP systems can integrate seamlessly with other business systems and software applications. This allows organizations to exchange data more easily and efficiently between different departments and systems, streamlining business processes even further.
In short, the availability of standard functionalities within an ERP system is of great importance for the success of an organization.
Disadvantages of sticking to standard functionality
One of the drawbacks of standard functionality is that the company may not be able to automate certain specific business processes that are unique to their company. This can result in extra work for employees and inefficient processes, which can lead to higher costs and a delay in the company's ability to grow.
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Another disadvantage is that the company may not be able to differentiate itself from the competition through innovative and differentiating processes. At a time when competition is getting fiercer, this can be a significant disadvantage. It can also mean that the company is unable to adapt to changing market conditions and customer needs.
In addition, standard functionalities can in some cases overestimate the needs of the company, leading to unnecessary costs for the implementation and maintenance of the ERP software. It can also mean that the company is forced to use multiple software solutions to address specific business processes, which can lead to complex integrations and increased costs.
Finally, sticking to standard functionality can mean that the company is less flexible and less able to adapt to changes in the business environment. This can limit the company's ability to respond quickly to new opportunities and challenges, which can be detrimental in the long run.
A scalable ERP system that can adapt to the changing needs of the business
While it is important to have standard functionalities within an ERP system, a company must also consider the disadvantages of limiting itself to these functionalities. It is important to properly map out the needs of the company and to ensure a good match between the business needs and the functionalities of the ERP system. By doing so, the company can reap the benefits of an ERP system while minimizing the drawbacks.
There is no unequivocal answer to the question of what the right balance is between standard and customization within ERP systems, as this strongly depends on the specific needs of an organization.
In general, it is wise to use the standard functionalities of an ERP system as much as possible, because they have already been extensively tested and optimized for use. In addition, customizing the standard functionalities can lead to higher implementation and maintenance costs, and can extend the implementation time.
On the other hand, customization may sometimes be necessary to meet the specific needs of an organization. For example, it can be about unique business processes, specific reporting needs or integration with specific external systems. In these cases, adding customization can increase the company's efficiency and productivity and boost its competitive advantage.
A good approach is to first look at the standard functionalities of the chosen ERP system and determine which of them are essential for the organization's business processes. It can then look at any gaps between the standard functionality and business needs and determine whether they can be resolved with configuration or add-ons. If there are still gaps, the need for custom solutions and the possible costs and impact of this can be looked at.
It is also important to consider future growth and changes in business needs. A scalable ERP system that can adapt to changing business needs can limit the use of custom solutions.
In short, there is no fixed relationship between standard and customization within ERP systems and it is important to assess this on a case-by-case basis. It is recommended that you first look at the standard functionalities and use them where possible, but also evaluate whether customization is needed to fulfill specific business needs.
An ERP system can significantly contribute to improving business processes and streamlining business activities. But when selecting an ERP system, it is crucial to ensure that the system contains as many standard functionalities as possible that fit the needs of the business, to avoid additional costs and delays. However, the standard functionalities of an ERP system may not be sufficient to meet the specific needs of an organization. In that case, custom solutions may be necessary, although this may entail additional costs and implementation delays. That is why it is essential to properly map out the requirements of the company and ensure that there is a good match between the business needs and the functionalities of the ERP system. I therefore recommend that you first look at the standard functionalities and use them where possible, but also evaluate whether customization is needed to fulfill specific business needs. By making an informed decision and ensuring that the ERP system fits the needs of your company, efficient and successful business processes can be guaranteed.
I am convinced that NetSuite is an ideal solution to fill this in. NetSuite offers a scalable ERP system that can be tailored to specific business needs. It also offers standard functionality that reduces the need for costly customizations and ensures a quick ROI. The availability of standard functionality improves the user experience and reduces the need for extensive training and support. It also contributes to the security and interoperability of the system. However, a potential drawback is that some specific business processes that are unique to a company may not be fully automated. However, most of the functionalities can be fulfilled by the large amount of SuiteApps that are made available by partners. In general, the availability of standard functionality within an ERP system is critical to an organization's success, and NetSuite appears to offer a comprehensive solution.
Do you have questions, would you like to spar about your IT landscape and choices you can/should make?
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Joris Teulings
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