6 reasons why the automotive sector needs more intelligent ERP solutions

Reading Time: 5 minutes

ERP solutions automate business processes, eliminate human-induced errors, and make automobile companies ready to compete in the market. 

Businesses are always trying to find new ways to improve efficiency, reduce operation expenses, and increase productivity. These reasons have made it essential for them to implement business management suites. Enterprise Resource Management (ERP) software ensures that all your business activities are automated and employees get time to focus on strategic tasks that require creativity and intelligence. 

A report published by CIO in 2008 revealed that more than 85% of respondents believed that they could not survive without an efficient ERP system. The findings of the report are relevant today as well. Some of the essential points described in the report were as follows:

a. 76% of respondents considered operational efficiency as their primary motive for implementing an ERP system. 

b. 12% of respondents were interested in the global business support modules of the ERP system.

c. 5% of respondents were motivated by the growth potential offered by ERP software.

d. 4% of respondents desperately needed measures to reduce operational costs offered by ERP software.

Also, there are numerous benefits of implementing ERP software. But it also comes with its own sets of challenges, such as investment of financial resources, long implementation time, an intense collaboration between various business departments, and periodic hand-holding sessions for employees. 

Integrating new and improved ERP solutions with legacy systems in your automobile company may appear costly and resource-heavy. Still, experts suggest that the benefits vastly outweigh the cost, time, and effort initially required in the implementation task. 

This article will shed light on the benefits of ERP software in an automobile company. 

1. Save costs

The primary motive of using ERP software is to reduce operational expenses in the automotive sector. But high implementation costs may seem contradictory to this notion. Let’s understand it carefully.

ERP software integrates various business management suits, such as product development, manufacturing, warehouse and inventory, marketing and sales, finance and accounting, vendor/supplier/distributor relations, human resource management, customer relationship management, and supply chain management into a single system.

By uniting disparate software solutions into an integrated interface, you will have to pay only for one enterprise management software. Moreover, you can significantly reduce employee training costs. 


Also Read: The hidden costs of ERP implementation

2. Improved team collaboration and enhanced communication.

Experts suggest that information silos are one of the most significant causes of a company’s deterioration over time. They restrict the free flow of information from one business department to another. On the other hand, ERP software allows critical business data to move between various business departments in more ways than one. The following example illustrates this better. 

Suppose a customer decides to purchase a car. They walk inside the showroom and seek information from sales agents. The sales team prepares a list of the needs, wants, desires, and ambitions of all the customers who visit the showroom over a month and forwards it to the marketing department. The marketing team can use the data to tweak their campaigns, both offline and digital, to garner better results.

On the other hand, the customer support team regularly solves customer queries and improves customer experience. At the end of the month, they prepare a detailed report mentioning customers’ common problems. This report is sent to the product development department to make the required changes in the car and launch a new and improved version with a substantially high sales potential.

ERP systems break information silos and significantly enhance the communication and information-sharing capabilities of all business departments to work as a cohesive force. 


Also Read: Integrating ERP with Blockchain Technology for Efficient Collaboration

3. High-quality analytics

ERP Software contains an analytics module that provides comprehensive reports about the following:

a. Changing customer behavior

b. Transforming market trends

c. Expense statements

d. Income statements

e. Key Performance Indicators (KPIs)

f. Inventory update status

g. Government norms, policies, rules, and regulations.

ERP systems create detailed reports that provide a 360-degree view of the points mentioned above. These reports allow the senior management to gain a holistic idea of the market and enable brainstorming effective strategies for the automobile company. It also helps to forecast future trends that allow preparing for them beforehand. Moreover, ERP systems make it very easy to access reports, eliminating the need for a specialized IT team. 


Also Read: Cloud-based ERP for Social Presence & Analytics Tracking

4. Increased productivity.

If you critically analyze your automobile company’s business processes, you will find numerous redundancies that are eating up a lot of time, money, and resources. For example, many automobile companies still rely on manual production lines. It means that everything, from manufacturing automobile parts and polishing glasses to installing internal components and painting, is done manually. ERP software improves the manufacturing production line by automating each process and making them fast, efficient, and less prone to human errors

Apart from the production line, there are various other departments in an automobile company. For example, Supply chain management plays an essential role in this business. Organizations have to maintain excellent relations with vendors, suppliers, and distributors to get discounts and sell their vehicles at places that show maximum demand. ERP software allows the automobile company and the vendors to communicate with each other constantly. They can share essential information over secured online pathways that only authorized personnel can access. The ERP software schedules reminders, alerts, and notifications that keep all parties informed about every issue. Objectively speaking, it keeps the trust alive.


Also Read: 4 ways ERP systems can help manufacturers improve productivity?

5. Top-notch customer support

In this information age, the customer is the king. The sure-shot way of getting ahead and becoming the market leader is to maintain excellent customer relations. Do you know that it’s five times more expensive to gain new customers than retain existing ones? For maintaining robust and long-lasting customer relationships, automobile companies must conduct user interviews, collect customer feedback, and provide instant solutions to customer queries. For achieving this purpose, ERP systems can be integrated with Customer Relationship Management (CRM) software that works as an efficient communication channel between the automobile company and its customers. 

CRM software has built-in chatbot features that collect crucial customer information, provide instant solutions to their queries, create and maintain a database of frequently asked questions (FAQ), and route queries that require strategic thinking to support service agents.


Also Read: The top customer service trends of 2021

6. Compliance with government rules and regulations.

Automobile companies must adhere to the government and local authorities’ laws strictly. Otherwise, they might have to face stringent actions. ERP software monitors changes across taxation laws, prescribed practices, and international policies that impact automobiles’ manufacturing and distribution. 

Moreover, ERP software is GST compliant, so you don’t have to worry about GST issues anymore. You can insert invoice details into the ERP software, which will convert them according to a pre-structured format.


Also Read: Startups and Tax Compliance: How can ERP help?

Conclusion

ERP software has become the backbone of companies across all industries. No organization can think of competing in the market without implementing ERP software, let alone becoming a market leader. ERP software significantly increases the capability of automobile companies. In short, they increase productivity, reduce operational expenses, improve profits, and help develop and maintain excellent customer relations. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

Hybrid ERP provides the best of both worlds.

Reading Time: 4 minutes

Hybrid ERP is catching attention in companies across industries because it provides the combined benefit of On-Premise and On-Cloud ERP software at affordable costs. 

Today, no company can expect to function without Enterprise Resource Management (ERP) software, let alone become a market leader. There are various benefits of using one, such as automating manual processes, increasing jobs’ efficiency, and focusing on strategic tasks requiring creativity and intelligence. But companies often find it challenging to decide whether to implement an on-premise ERP software or on-cloud ERP software. 

On the one hand, on-premise ERP software ensures greater data security, reduces vendor dependency, and restricts growing costs. But it is costly. On-cloud ERP software provides greater operational efficiency, flexibility and is less expensive than on-premise ERP software but requires more vendor dependency.

Hybrid ERP systems provide a combination of both on-premise and on-cloud ERP software in one single package. It combines the core processes of on-premise ERP software along with the cloud. In short, you will get the best of both worlds that will help you increase the productivity and bottom-line results of your organization significantly. 

Let’s see a few advantages of using hybrid ERP systems to accomplish a company’s goals and objectives.

1. Hybrid ERP will facilitate business activities in the future.

Digital transformation is on the rise. Artificial intelligence, Machine Learning, Natural Language Processing, and Cloud Computing are future technologies. A company’s proficiency in these technologies will decide its relevance and survival in the industry. Hybrid ERP systems provide a way of combining all these technologies into a single platform, thereby increasing the company’s efficiency, increasing its profitability, and reducing its operational expenses.

They have a range of features that automate manual tasks, such as collecting critical customer information and other trivial data entry jobs. It allows teams to divert attention from repetitive tasks and focus more on complex issues that require human ingenuity.


Also Read: Getting the Best of both Worlds with a Hybrid ERP Solution

2. Hybrid ERPs allow businesses to focus on their core capabilities.

Multiple industry sectors haven’t been serviced well by on-premise ERP software systems. These include advertising, digital media, cinema, and various other business services. Such sectors have already adopted cloud system solutions as they offer better portability and require less technical expertise. Hybrid ERP systems will democratize software solutions for the sectors mentioned above by enabling them to benefit from the core capabilities of on-premise ERP solutions and the flexibility and operational efficiency of on-cloud ERP software.


Also Read: Wearable technology and the future of Cloud ERP

3. Hybrid ERP systems are highly adaptable. 

Imagine a small business that manufactures hundred iron rods every day. After a few weeks, it decides to purchase ERP software for streamlining its business activities. But unfortunately, the price is above their budget that hampers their decision to buy it. 

Hybrid ERP systems allow businesses to select particular modules they need. For example, in the above case, the company needs only manufacturing, sales, finance, supply chain management, and inventory management modules. It can skip other modules such as marketing, customer relationship management, and social media marketing, which reduces the purchasing and implementation cost considerably.

Moreover, hybrid ERP systems are flexible as they allow businesses to integrate newer modules into their legacy systems conveniently. 


Also Read: Add-on modules in ERP software and their benefits

4. Hybrid ERPs have impressive number-crunching capability.

In this information age, data is the new oil. Businesses that cannot capture and analyze critical data fall short of their competitors. They fail to understand the changing market trends and customer needs that are crucial for brainstorming competitive strategies

Hybrid ERP systems possess the capability to gather and process large volumes of data. They provide a comprehensive picture of the market and store data in a streamlined way. They also break information silos that restrict the free flow of information from one business department to another. 

Sophisticated analytics and real-time reporting are the essential attributes of hybrid ERP systems. 


Also Read: Cloud-based ERP for Social Presence & Analytics Tracking

5. Hybrid ERP systems are cost-efficient.

Hybrid ERP systems allow companies to continue doing their critical business operations while also accessing cloud capabilities. This significantly reduces implementation cost and time frames for small-scale companies that lack the infrastructure, financial resources, and expertise to manage personal servers. Hybrid ERP systems build upon the capability of your employees by allowing them to work remotely. 

For example, your salesperson visits a client’s home. After reaching their place, the salesperson collects essential documents, brings them to the office, and finally stores them inside the central repository. The most significant disadvantage in this example is that the salesperson wastes a lot of time hopping between the company premises and the client’s home. 

Now, consider another situation. Your salesperson visits the client’s place and uploads all the necessary documents through their mobile phone. There is no need to carry the documents to the office premises, which saves a lot of time. Hybrid ERP software uses its cloud capability to upload and download critical information from anywhere and anytime. 


Also Read: How Cloud ERP helps Auto Component Manufacturers go Lean?

Conclusion

Hybrid ERP has several advantages. It will help you create advanced reports that provide a comprehensive understanding of the market and customer needs. It has unique number-crunching abilities that allow assimilating essential data and unearthing hidden insights. This new technology has taken over the world by storm by enabling organizations to significantly increase their capabilities at a low cost. It makes perfect sense to implement a hybrid ERP system in your premises to increase efficiency, maximize profits, reduce operational expenditure, and develop robust and long-lasting customer relationships. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

Top challenges in ERP implementation

Reading Time: 7 minutes
Synopsis: ERP implementation is a challenging task that can put a halt on business operations if not done correctly. Companies need to continuously motivate their employees and monitor the process to see that everything goes smoothly and each stakeholder faces minimum challenges.

What is ERP software?

Enterprise Resource Planning (ERP) software has become a part and parcel of businesses across industries. No company can think of surviving in the market, let alone competing with other players. ERP systems play a significant role in helping you manage critical business functions, such as sales & marketing, manufacturing, finance & accounting, managing relationships with vendors/suppliers/distributors, developing robust and evergreen customer relations, and handling inventory and warehouse management.

What are the benefits of ERP software?

The list below will shed light on some of the benefits of ERP systems:

1. Your sales team can sort prospects in the sales pipeline based on various parameters like:

a. Follow-up stage

b. Potential meetings

c. Meetings completed

d. Proposals made

e. Negotiations started

The best part is that that they can complete the sorting process in a simple drag and drop fashion.

2. Your marketing team can brainstorm effective customer acquisition and retention strategies based on crucial customer data such as geography, demography, psychography, behavior, ticket size, and past purchasing pattern.

3. Your support service department can form long-lasting customer relationships by interacting with them 24/7 and by acting on their feedback instantly.

4. Your ERP system sends continuous alerts and reminders to all business stakeholders allowing them to stay updated with real-time information.

5. Your manufacturing department can conveniently monitor the conversion of raw materials into finished products and check whether all the guidelines and specifications are being adhered to.

6. Your finance & accounting team can automate trivial jobs like creating invoices, maintaining and updating ledgers, and clearing taxes on time.

7. Your inventory and warehouse team can monitor the supply of raw materials and finished products in the stockpile. If the number of raw materials goes below the set threshold, the ERP will automatically send a purchase order to the vendor.

8. Your ERP can automate the process of selecting the best supply chain partners from a long list of vendors/suppliers/distributors.

9. Your ERP system comes with an integrated data analytics feature that can collect and process huge volumes of data. This helps to get a comprehensive understanding of the changing customer preferences and transforming market trends.

10. Your ERP system keeps you tax compliant by allowing you to adhere to government norms and practices. It also has a GST module that keeps you updated about any new changes in the GST regime.


Also Read: 7 reasons why your business must opt for a cloud-based ERP solution?

Why is ERP implementation so difficult?

After reading how Enterprise Resource Planning solutions can help you in conducting business efficiently, it is time to delve deep and get a complete picture of the ERP implementation challenges and how you can overcome them.

ERP systems can be implemented in two ways — On-Premise and On-Cloud.

On-Premise ERP systems are deployed inside your office building. They are massive systems with several servers and network ports that require a separate room for installation.

Want to know how ERP systems can help you in achieving your goals and how to implement them? Read the guidebook “ERP Full Form” by clicking on the picture below.

ERP Full Form

The following list provides the advantages of an On-Premise ERP system:

1. The most significant advantage of an On-Premise ERP system is robust data security. Since the On-Premise ERP system is situated within your office, no external entity can use it. Also, unlike their On-Cloud counterparts, all the updates are done by the in-house technical team and not by external third-party vendors. It significantly reduces the exposure of critical business data to external stakeholders.

2. Once the ERP implementation process is finished, you no longer need to depend on an ERP vendor. It will substantially reduce your operational expenses because you don’t have to pay for the services of any third party.

3. Employees with a non-technical background require intensive training to learn how to operate an ERP. In the case of an On-Premise ERP system, your in-house technical team will provide the necessary training. You don’t have to pay the training fees to any third-party vendor.

4. Providing customized solutions is one of the biggest assets of your ERP suite. The in-house IT experts have a first-hand view of your company’s challenges that helps them develop solutions specifically tailored to your business needs.

What are the challenges when implementing and upgrading enterprise systems?

1. Implementing ERP can be challenging for most businesses. It is because On-Premise ERP solutions can significantly raise the operating expenses of the business. There are numerous reasons behind this. Firstly, they occupy a lot of office space for installation. So you need to ensure that you can pay higher rent. Secondly, you should have an in-house IT team that has decades of experience and access to the best quality software. It is one of the biggest challenges for small and medium enterprises to have a separate IT team because they lack the required financial resources to support one.

2. On-Premise ERP implementation can adversely impact the process and functioning of the sales department in your business. The following example will shed light on it. Suppose your sales team qualifies a lead and requires important documents before the customer can make the final purchase. In that case, the salesperson will go to the client’s place, collect the required documents, and carry them to the office for uploading them in ERP suite. Do you think this process adversely impacts your business? You will get a detailed answer in the next section when we talk about On-Cloud systems.

3. One of the most significant disadvantages of On-Premise ERP implementation is that it can disrupt the functioning of the business for a long time. Your company’s employees will have to work for extended periods in order to learn the basics of the new system. Some projects may be called off and others might have to be temporarily put aside. The senior management will have to create new workflows and redesign employee duties so that the business runs smoothly.

4. Some of the most challenging aspects of an ERP implementation are as follows:

a. Additional ERP modules come at an extra cost.

b. Only the in-house IT team is responsible for the upkeep of the new system because you aren’t dependent on any third-party vendor.

c. Data migration can be a serious headache during the implementation phase. Critical business data may be stored in different repositories across various departments of your company. It is essential to retain crucial information and delete duplicate data to save expensive memory space in the new ERP.

d. Change management can easily be touted as the toughest of all ERP implementation challenges. Front-line users resist the change as they find it extremely difficult to learn the functioning of the ERP system. As the leader of your company, you need to motivate different business stakeholders by communicating the merits and features of ERP implementation.


Also Read: 3 ways to save yourself from ERP implementation disaster.

What challenges can ERP solve for an organization?

Now that we have a complete picture of ERP implementation challenges, it is time to look at how an ERP solution can help your organization.

On-Cloud ERP suites are rapidly being adopted by companies worldwide. The following reasons explain why:

1. They are way cheaper than their On-Premise counterparts, which makes it easy for small and medium enterprises (SME) to purchase them.

2. Their implementation and upkeep are also very easy. It is because SMEs don’t have to worry about paying extra money for the ERP installation. The third-party vendor takes care of buying expensive servers and managing the network issues. Thus, a lack of financial resources is not a significant challenge anymore.

3. On-Cloud systems make change management a piece of a cake because employees no longer have to stay in the office for extended periods. Third-party vendors provide technical training that helps to ensure that employees can learn on the go.

4. Companies have to mull over data security challenges during an ERP implementation. The best part about On-Cloud ERP systems is that the third-party vendor takes care of all cybersecurity challenges for your company. You don’t need an in-house IT team to provide round-the-clock protection for the new ERP.

5. An ERP implementation requires numerous version updates and technology upgrades periodically in order to brainstorm market-specific strategies as well as to provide tough competition to other market players.

6. The implementation of the On-Cloud ERP suite is a boon for your sales team. Remember we touched upon this topic previously and had promised to give you a valid explanation later. Well, here it is. With an On-Cloud ERP solution, your salesperson can collect all the important documents from the client’s place itself. They don’t have to return to the office to upload the documents. In short, it allows working on the go and saves a lot of time.

7. On-Cloud ERP solutions can be integrated with the employees’ smartphone to ensure that they can access critical business documents 24/7 as well as take the managers’ assistance from anywhere and at any time.

8. Have you ever considered what is the deployment time of an On-Premise ERP solution? It extends somewhere between six to twelve months. On the other hand, the implementation of the On-Cloud ERP system takes not more than 72 hours. Some of your employees might resist the implementation of On-Premise ERP only because they take a lot of time. If you are dealing with a similar scenario, then On-Cloud ERP is the best choice for your company.

9. Do you have a full-fledged IT team? Are they doing low-value activities like collecting data from various sources? Lack of an On-Cloud ERP solution can waste a lot of time of your IT team. On the other hand, by implementing one you can offload trivial jobs to the ERP suite that will free up time for your IT employees who can then focus more on strategic tasks.

10. On-Cloud ERP suites allow you to be more environment-friendly. Third-party vendors provide ERP capabilities to numerous companies on a shared infrastructure that reduces the need to maintain separate servers and also saves electricity.

Conclusion

ERP solutions have become the backbone of all businesses across industries. It’s because they support each business operation and also help build robust and long-lasting customer relationships. Their ability to collect critical business data from multiple sources and how they build unique customer personas makes them extremely useful for different business scenarios. This article has given you a complete picture of ERP benefits and the challenges associated with ERP implementation.

If you desire to get a better understanding of ERP, please refer to the following guide by clicking on the picture below.

The Ultimate ERP Guide 2021

At Sage Software Solutions (P) Ltd., we are home to world-class On-Cloud ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. You can also write to us at sales@sagesoftware.co.in. We will provide you all the required support to implement a Cloud-based ERP solution in your company. Book an appointment today!

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Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

Explained: Why employee training programs are the backbone of successful ERP implementation.

Reading Time: 8 minutes

Summary: Employees are the backbone of each business operation. Without their wholehearted involvement, you cannot think of achieving the desired output. But you also need to focus on developing their skills and making them capable of delivering excellent results within the desired timeframe. An employee training and development program plays a significant role in developing unique skills for the successful implementation of ERP. Simply put, training programs provide a systematic workflow and the required motivation to deal with problems and achieve the pre-decided milestones within a definite duration.    

First, let’s understand why companies need ERP software for conducting their everyday operations.

How ERP software plays a significant role in companies?

Companies across industries have realized the significance of Enterprise Resource Planning (ERP) software in conducting business operations smoothly and conveniently. The main reason why ERP software has become the backbone of businesses is that they automate several critical business functions like finance & accounting,  sales & marketing, supply chain, inventory & warehouse, vendor management, and building robust and evergreen customer relationships.

ERP implementation provides multiple benefits to companies. Firstly, as explained above, they automate business operations that reduce/eliminate human errors. Secondly, employees get more free time to focus on mission-critical tasks instead of doing trivial jobs. Thirdly, businesses develop a strong bond with their clients as CRM-enabled ERP software provides concrete data about changing customer preferences and marketing trends that help create unique customer personas. Lastly, ERP software helps companies stay compliant with government policies and norms and keeps a tab on any new circular issued by the government.

Want to gain a comprehensive understanding of ERP software? Click on the picture below to learn about the different types of ERP, how they work, their benefits, and the various stages in ERP implementation.

The Ultimate ERP Guide 2021

But ERP implementation will not fetch you any results if you don’t impart rigorous training to your employees. But first, let’s gain a deep understanding of the challenges associated with ERP implementation. The next section will talk about this topic in detail.

What are the challenges associated with ERP implementation?

ERP implementation is a complicated process that requires collaboration between all business departments. Information silos act as a major impediment here. They restrict the free flow of information and don’t allow business stakeholders to work in unison, thereby limiting the impact your business can make as a united entity.

challenges associated with ERP implementation

The following points list the challenges in great detail:

1. Legacy ERP systems acquire a lot of office space. You may have to rent a new room for installing On-Premise ERP systems. However, you can circumvent this problem by opting for a Cloud-enabled ERP system.

2. Legacy ERP systems don’t allow salespeople to collect customer data on the go. They need to do a lot of back and forth between the client’s place and the office that wastes a tremendous amount of time. On-cloud ERP systems provide an easy solution to this challenge as sales teams can collect critical customer details and upload necessary documents while working from their office.

3. Employees have to work for a longer duration as some projects might be called off and others would be temporarily put aside. They have to align themselves with the new workflows as decided by the senior management.

4. Data migration is another challenge that employees have to deal with. Normally, different departments have different data repositories to store critical data. On the other hand, a full-fledged ERP software will act as a single source of truth combining all data repositories into one. This means that different teams will have to learn to collaborate and work as a united force.


Also Read: Data Security Risks during ERP Implementation: Playing Safe

5. Change management is yet another challenge that not many companies focus on. Usually, the frontline workers with no technical background face immense challenges in learning how to operate a new ERP system. This is why they resist ERP implementation and are less motivated to work.      

An employee training and development program provides a 360-degree understanding of how to operate the new system. Gradually, as the employees gain the relevant skills, the effectiveness of operations improves which helps to stay ahead of the competition.

The next section will shed light on the challenges associated with employee training and development programs. It will provide you a complete outlook of the challenges that your employees will face during the ERP implementation and how to develop a concrete strategy to counter them.  


Also Read: Top challenges in ERP implementation.

What are the challenges associated with employee training and development programs during ERP implementation?

The ERP implementation ratio has significantly increased since the 1990s. Today, companies of all sizes have ERP software that helps them increase their productivity, reduce their operational expenses, automate their business operations, and build long-lasting customer relationships. But still, companies have to face numerous challenges while creating employee training and development programs.

challenges associated with employee training and development programs during ERP implementation

Let’s understand them one by one:

1. Lack of senior management commitment.

New projects require the undying spirit and the motivation of a dynamic leader to reach completion. Usually, the senior management in a company lacks the skills and the incentives to create a comprehensive learning and development training program.

2. Ineffective communication with users.

ERP implementation is a long and complicated process that requires a lot of time. Normally, it takes somewhere between 6-12 weeks for On-Cloud ERP implementation. On the other hand, it takes about 6 months to 2 years for On-Premise implementation. Remember that many of your company’s operations may get delayed that may cause a bad impact on customer experience. Unfortunately, the senior management in many organizations fails to develop a comprehensive communication plan and loses a big chunk of their clients.

3. Lack of effective project management methodology.

A project management methodology defines the steps, procedures, and frameworks to attain a specific goal. Choosing the correct methodology depends on various factors, such as flexibility in the workplace, adopting measures that deliver the most value, leveraging organizational goals, and developing team values. Unfortunately, most organizations lack managers who have the ability to create effective project management methodology.


Also Read: The 4 Stages of ERP Implementation Life Cycle

4. Conflicts between different departments.

Each company has multiple departments that have their own data repositories and follow their own set of processes. They don’t like sharing critical business information to stay ahead of others. One of the biggest challenges to address while brainstorming a training and development program is to develop a sense of collaboration instead of competition.

5. Failure to redesign business processes.

Redesigning business processes is one of the core tenets of employee training programs. ERP implementation has several stages and each of them has its own set of challenges and requirements. Senior managers often fail to design an appropriate strategy to counter these challenges that leads to confusion and inefficiency.

To learn more on why your company should implement an ERP software, what goals can your organization achieve by implementing it, and how to implement it, read our comprehensive guide “The A to Z of ERP systems” by clicking on the picture below.

ERP Full Form

After getting a firm grip on the challenges associated with ERP implementation, it’s now time to see how your employees can counter the challenges posed by ERP implementation. 

Why are employee training programs the backbone of successful ERP implementation?

The most significant challenge of companies is that they don’t give enough importance to employee training. They think that employees will grasp the required skills with time by themselves, which usually doesn’t happen. The reality is that without proper hand holding and employee training programs, the learning curve flattens. If the senior management fails to motivate the end-users to learn using the ERP system, they will not have any incentive to master it and resent the implementation of the new tool.

employee training programs the backbone of successful ERP implementation

Let’s get a concrete understanding of why a training and development program is the backbone of successful ERP implementation, and why it’s necessary for the success of your employees.   

1. Increased employee productivity.

Employees fail to take any initiative without efficient employee training programs. Instead, they wait for those who understand the nitty-gritty of the ERP software. On the other hand, the end-users can solve challenges without any external help if your organization creates employee-centric training programs. Moreover, they wouldn’t be required to refer to complicated documentations and training programs to remember every single function. A combination of these factors will result in increased employee productivity.

2. Makes the workforce more cost-efficient.

The best use of employee training is that your workforce will not have to always devise new ways of troubleshooting technical problems or wait for someone else to solve the issue. When your workforce is sufficiently trained to solve the challenges efficiently, you can rest assured that you are paying them for dealing with mission-critical issues instead of finishing trivial jobs. Initially, employee training programs might seem to be an extra overhead, but they help increase the employee cost-effectiveness substantially.

3. Makes the workforce more time-effective.

Learning and development programs are designed in a manner that enables employees to grasp skills for operating an ERP system. When your workforce will be able to use an ERP system to solve their daily challenges, they will save time and multiply their productivity. Learning programs are designed to help your workforce save time in troubleshooting technical faults by sticking to a particular blueprint.

4. Reduces the risk potential.

The critical benefit of using ERP software is that each department uses the same data repository to access crucial business data. This system provides dual benefits. Firstly, it allows each business department to be on the same page, making data redundancy and duplication error a thing of the past. Secondly, the fewer data repositories you have, the lower your exposure to cyber threats will be. Employee training is the surest way to lower your risk potential.

5. Helps retain the existing workforce.

Companies often look for recruiting new employees after implementing an ERP system. It’s because the existing workforce resists using the ERP system and avoids training sessions. But companies must remember that it takes time for new employees to blend in with the company’s Mission, Vision, and Values (MVV) and align themselves with the organization’s future goals. Also, old employees are more loyal to the organization and have a deep understanding of its functioning, processes, and objectives.

The main purpose of training programs is to implement proven tactics to motivate existing employees to learn how to operate ERP software. It has several benefits like:

a. No need to recruit new employees.

b. Retaining an existing workforce that is loyal and aligned to the organization’s goals.

c. Recruiting new employees every now and then puts immense pressure on the HR team and you might also have to shell out extra bucks in the process.

Conclusion

Employee training programs allow companies to develop core skills in their workforce to operate the ERP system efficiently. Employees often resist attending training sessions, which obstructs the company from achieving its long-term goals. Without an efficient training program, your company cannot draw significant benefits from the newly installed ERP software. All those months and efforts in implementing an ERP software will go in vain. So, it’s the responsibility of the senior management to brainstorm an effective training program and motivate the workforce to hone their technical skills and understand the nitty-gritty of the ERP system. Remember, that employees are the most essential part of your organization and without them, you cannot even think of surviving for long, let alone competing with other sharks in the industry. Also, keep in mind that retaining the existing workforce is better than recruiting new employees because they are more loyal and better aligned to your company’s long-term objectives. So invest in developing the core skills of your existing employees and get ready to draw significant benefits from your ERP system.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. You can also write to us at sales@sagesoftware.co.in.

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Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

 

 

5 ways technical back-end support will help you get the most out of your ERP software

Reading Time: 3 minutes

Technical back-end support provides you instant real-time solutions to all your ERP-related challenges.

The ERP software implementation journey is a long one. It starts from hunting for the most appropriate ERP software based on your company’s requirements to training the workforce on how to use it effectively. But once the implementation is complete, your team can land in problematic scenarios. Such challenging situations can prove detrimental to your company’s success if they aren’t solved on time. They can impact your productivity, decrease your efficiency, shrink your customer base, and increase your response time. Moreover, they can dilute your company’s reputation and make you lag behind other market players. 

This article will explain how top-notch technical back-end support will help you get the most out of your ERP software. 

1. Technical back-end support will help you get pitch-perfect solutions instantly.

Employees face numerous challenges after ERP software implementation. They need extensive training for carrying out various operations on the ERP software. Also, they require handholding to find solutions to unexpected problems. Raising support flags and queries is an established way for letting the technical back-end support know about the issues you are facing. An efficient technical back-end support team will instantly provide to-the-point solutions and help your team resume their operation quickly. 


Also Read: Change Management: Keep your employees excited about a new ERP system

2. Effective communication and proactive employee engagement are essential tenets of an excellent technical back-end support team.

Ineffective communication can impact your ability to get in touch with the technical back-end support team and get your problem solved. Moreover, companies also lack proactive employee engagement practices that give rise to confusion. You must periodically communicate with the technical back-end support team to monitor issue resolution progress and get regular updates.

3. Technical back-end support team will train your employees and provide demos.

Employees require training sessions that explain how to use live data while working with the ERP software. They also need to get periodic hands-on practice sessions where they can learn the nitty-gritty of ERP systems. The technical back-end support team also creates a software manual that gets updated after every training session. Employees can refer to this manual to build a knowledge base and clear their doubts at the earliest.

4. Technical back-end support keeps your data secure.

Data security is a significant issue for every company. In 2020 alone, there have been 445 million cyberattacks, which is double the amount compared with 2019. Remember that there isn’t any company that is impenetrable to cybersecurity attacks. The technical back-end support team can help to keep your data secure. Think about the losses you will make if your private details, transaction data, or digital signature gets in the hands of unethical hackers. The technical back-end support team can save you from such disastrous situations by taking appropriate precautionary measures. They will provide a secure data environment and restrict the entry of unauthorized trespassers. 


Also Read: ERP and Cybersecurity – What no one is talking about?

5. The technical back-end support team provides regular upgrades and backups. 

New technologies come to the market every day and you need to update your ERP system accordingly. For example, chatbots are a recent invention that allows companies to gather customer-centric information and provide instant solutions to their queries. Moreover, you must perform periodic data backups so that you don’t lose critical business data. The technical back-end support team allows you to perform these functions smoothly. 

Conclusion

The technical back-end support team provides instant solutions to queries and handholds employees to get the most out of the ERP software. Remember that ERP software is a business management suite that consists of multiple modules. To reap maximum benefits, it requires years of practice to perfect and expert guidance. A robust technical back-end support team will help you get these benefits. Further, never forget to consult your vendor to know about additional service capabilities.  

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

How do ERP systems help improve your cash flow?

Reading Time: 3 minutes

ERP systems have various built-in modules that substantially improve cash flow management.

When companies are founded, they use manual systems for maintaining their finance and accounts. But as the client base, number of daily transactions, and mandatory compliances grow, it becomes challenging to sustain those operations by using manual systems. Moreover, if the company loses a key employee, the troubles may further increase. Most businesses implement multiple databases to manage critical business functions, but they adversely impact your ability to:

a. Sell products efficiently to the customers

b. Produce accurate forecasts

c. Adhere to taxes and compliances

d. Gain working capital visibility

e. Manage inventory and billing processes

f. Manage cash flow

Enterprise Resource Planning (ERP) software enables businesses to improve and manage their cash flow — expenses, inventory, sales, and billing.

This article will focus on how ERP systems can help you streamline cash flow management.

 

1. ERP systems control inventory costs.

Improving cash flow requires keeping your inventory costs low. ERP systems break information silos and provide access to critical inventory data to all business stakeholders — frontline executives, C-suite managers, vendors, suppliers, and distributors. It means that employees working in different departments have to no longer ask for reports from the inventory department. Also, there is no need to work on long Excel sheets as the ERP system will automatically update everything. Moreover, the ERP system contains smart replenishment tools that monitor the inventory in real-time and place automatic orders for raw materials when their quantity goes below the set threshold.


Also Read: Tips to find the Right Accounting Software for your Business

2. ERP systems prepare automatic invoices.

Usually, there is a significant time gap between service delivery and billing if the invoices are manually managed. ERP systems help improve cash flow by allowing companies to raise an invoice while the service technician is at the client’s place. Thus, companies don’t have to wait for the next billing cycle — monthly, bi-monthly, or weekly — as they can generate invoices on-demand.

3. ERP systems reduce the need for additional labor.

One of the best ways to improve your cash flow is by reducing labor costs. ERP systems will automate most of your work processes, including raising invoices and sending reminders and alerts to your clients from time to time. ERP software lets you set predefined rules and thresholds, thereby eliminating the need to incur additional labor costs. Moreover, when your employees don’t have to waste time doing trivial jobs like data entry and filing forms, they can focus on strategic tasks that require creativity and intelligence. 

4. ERP systems manage vendor operations conveniently.

Managing vendor processes is critical for ensuring business success. Suppose you manufacture smartphones and the price for silicon in the international market goes down. In that case, the ERP system will automatically purchase a significant quantity of silicon chips from the vendor to benefit from the low global prices. 

5. ERP systems monitor current and future cash flow

Businesses must develop accurate forecasts that help manage current and future cash flows. ERP systems provide consolidated data that reveals the exact cash position making it easy to manage payments and receipts. They provide free access to information to all business stakeholders that monitor all the components of cash flow — customer credit limits, discounts, inventory costs, marketing and sales budgets, and payment terms


Also Read: Why the sales forecast is an important metric to consider even before engaging your sales team in actual sales?

Conclusion 

By improving your cash flow, you will gain a 360-degree perspective of your expenses, revenues, and investments. You will significantly improve your cash flow management by spending judiciously, saving a lot more money, and preparing accurate forecasts.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

How can Blockchain improve your logistics business?

Reading Time: 3 minutes

Blockchain is set to make logistics more efficient, secure, and transparent. 

Logistics is an essential part of supply chain management. The report published by Transparency Market Research suggests that the global logistics market will reach $15.5 trillion by 2023. But companies lose a substantial part of their profits for the following reasons:

a. Inefficient practices

b. Unnecessary expenses

c. Cyber-attacks

d. Thefts

Blockchain is set to transform the dynamics of supply chain logistics by:

a. Improving the speed of operations

b. Streamlining processes

c. Enhancing security

A recent whitepaper released by World Economic Forum suggests that distributed ledger technology such as Blockchain can increase global trade by more than $1 trillion in the next decade. Blockchain has the power to minimize trade gaps and streamline trading processes. The following points suggest how:

a. By implementing verified smart contracts that adapt according to changing market conditions and mutual agreement.

b. By eliminating frauds, errors, and inaccuracies. 

c. By cutting unnecessary paperwork.

d. By improving transaction flow.

Conglomerates like Amazon, Walmart, and Unilever are already leveraging Blockchain to enhance their supply chain logistics management. 

Let’s talk in detail about the benefits of Blockchain and how it can improve supply chain logistics management.

1. Blockchain improves efficiency.

Blockchain provides an efficient way to track shipping goods. It monitors the entire product life-cycle and facilitates ownership changes between manufacturers, retailers, and end-users. It eliminates redundant paperwork by developing smart contracts that adapt to changing conditions. Moreover, it also puts an end to information silos and ensures secured financial transactions through its distributed ledger system. 


Also Read: Integrating ERP with Blockchain Technology for Efficient Collaboration

2. Blockchain enhances security.

Most companies have a centralized data repository that contains critical business data. If a hacker gains access to this repository, they can delete or change the data stored inside it. Blockchain employs cryptographic security techniques that restrict access to third parties to modify the information stored in the chain.

3. Blockchain creates transparency.

As described above, Blockchain is a distributed ledger system that maintains records of all transactions in a single ledger. This ledger is visible to all the stakeholders and cannot be tampered with. Moreover, since all the stakeholders have access to the same version of the ledger, there cannot be any disagreements. Companies can trace the exact location of the goods and who owns them in real-time. 

4. Blockchain employs smart contracts. 

Studies reveal that about $140 billion is tied up in shipping disputes every day. Another shocking statistic is that it takes about 42 days to settle invoices on average, which further delays transportation. Blockchain improves supply chain logistics by employing smart contracts that automate agreements’ legal binding along the supply chain. It allows companies to enforce compliance through predecided transaction rules, which minimizes the risk that the other party will adhere to the clauses mentioned in the agreement.


Also Read: How Blockchain Technology will be disrupting CRM for Good?

5. Blockchain boosts product traceability.

One of the most critical uses of Blockchain is that it tracks the real-time location of products and sends reports to the supply chain logistics department. Blockchain can integrate the Internet of Things (IoT) and mobile-based technologies to trace the movement of finished goods. For example, small digital sensors can be attached to the goods that can track their location from start to finish. It will help to:

a. Boost monitoring of goods supplied.

b. Shorten delivery times

c. Collect useful information such as:

i. Their past locations

ii. Ownership changes

iii. Time for which the goods have been stored in a facility 

Conclusion

There are numerous benefits of Blockchain in supply chain logistics. They reduce the likelihood of lost products, improve storage processes, boost goods tracking, and record vendors, suppliers, and distributors’ past performance. Supply chains run through multiple geographical locations that are accompanied by numerous stakeholders and substantial paperwork. Blockchain integrates all the processes and provides a transparent and secure way to improve the business’s supply chain logistics.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

3 Ways VR can Lower Down the Pressure of High-Risk Training

Reading Time: 3 minutes

VR for training will serve as a boon for high-risk industries where the loss of life is rampant. 

There are numerous industries such as healthcare, mining, construction, manufacturing, and supply chain where people put their lives at high risk. Jobs like handling cargo and working in other hazardous environments can cause physical damage and can even lead to death in few instances. Specific industries like healthcare require dead bodies for experiments because inexperienced medical students can cause irreparable damage to patients. These are a few of the many cases where Virtual Reality (VR) will play an essential role. From carrying out physically demanding jobs to high-risk training, VR will help companies execute their jobs appropriately and save many lives. VR is not just limited to gaming. All kinds of industries are using it. According to PWC estimates, the VR industry’s worth will increase from $13.5 billion in 2019 to $450.5 billion by 2030

This article will focus on 3 ways VR can lower down the pressure of high-risk training.

1. VR for training in the healthcare industry.

As we saw during the pandemic, the healthcare industry was reeling under pressure. There was no country where the medical staff was prepared to handle so many patients in one go. Apart from a massive death toll, there were numerous other problems as well. Like medical students weren’t able to get a hands-on-practice for carrying out surgeries. It’s because many medical institutes didn’t allow students to conduct surgeries due to the pandemic. 

This is where VR for training came as a boon. It allowed students and first-time surgeons to participate in a real-time simulation of conducting surgeries. Students learned to make the right decisions without worrying about real-world anxieties and worries. VR headsets allowed medical students to safely do high-risk training at a lower cost and approximately 6 times faster than before.


Also Read: ERP for Healthcare Industry: Keeping it Fit and Fine

2. VR for training in the transport industry.

Do you know that people working as cargo-lifters have sometimes to traverse distances equal to 6 football fields? And the journey becomes life-threatening when the cargo is itself dangerous, for example, delivering fuel to fuel stations. The person has first to load the truck with appropriate amounts of fuel, then drive the truck to the fuel station, and then empty it in massive fuel tanks. Firstly, the fuel is combustible, meaning that a disaster can happen if due care isn’t given. Secondly, the learning process is often expensive and complicated.

VR for training comes as a boon. Employees can wear the VR headset and learn how to load and unload fuel tanks and drive safely. VR will completely transform the high-risk training by reducing the complexity and eliminating the associated dangers in the coming days.


Also Read: How ERP is driving Transportation Industry on the Right Foot?

3. VR for training is being rapidly adopted across industries.

VR for training is rising rapidly across industries. It’s because VR provides a safe environment for employees to perform high-risk training. It also reduces complexities that often occur while training and eliminates unwanted expenses. Moreover, it’s easy to handle and install and isn’t an expensive technology that some might think. VR for training considers the needs of every industry, from construction and manufacturing to cargo handling and supply chain. It’s a cost-effective tool that increases efficiency, improves productivity, and decreases operating costs

Conclusion

As explained in the above article, VR for training is rising rapidly. If you are in an industry involving high-risk training, you must employ VR in your business. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

4 Ways CEOs Can Aid Employee Mental Health in a Crisis

Reading Time: 2 minutes

Importance of Mental Health

A sudden shift to remote working has had a bad effect on employee mental health around the globe. As per a recent study, global quarantine has caused 75% of the people to feel socially isolated, 32.5% reported being less productive, and 54% say they are emotionally exhausted. This article focuses on how CEOs can aid employee mental health in a crisis. 

 

1. Engage with your workforce on a personal level

About 40% of employees said that their companies haven’t even asked about their well being since the pandemic began. And nearly 38% of this group further complained about the mental health crisis that they have been going through. This is an alarming situation. CEOs should engage with their workforce on a personal level and provide them mental support.


Also Read: 5 Keys for Building a Successful Remote Organization

2. Build trust

Building trust is the biggest medicine for curing mental health crisis. And the easiest way to do that is by demonstrating supportive listening. It helps employees to open up and discuss what they are going through. This allows CEOs to understand their problems and provide specific solutions. When employees realize that they are not alone in this fight, they support others as well. 

3. Catch the pulse of your workforce

CEOs should conduct a periodic survey to catch the pulse of their workforce — front line executives, managers, teams, departments, and the company as a whole. This will help them move ahead of trends forecasted by experts and understand the sentiments of their workforce. Recent studies have shown that sentiment analysis helps identify different situations immediately. Thus, if CEOs know the pulse of their workforce, they will be able to take action rapidly.

4. Be consistent in your communication

CEOs should communicate with their workforce consistently. According to a recent survey, 23% of people said they experienced a mental health crisis if their manager wasn’t good at communicating. It further added that 90% of them wanted at least a weekly call from their manager while 29% preferred daily communication. Studies provide countless benefits of good employee mental health — such as increased productivity and reduced absenteeism— which is why CEOs should remain consistently in touch with their workforce.

 

The pandemic has changed our way of working. Global quarantine is a reality and has forced companies to allow their employees to work from their homes. This sudden change in the way we live and work has caused a mental health crisis on a global scale. But if CEOs follow the steps mentioned above, it will help them develop a confident workforce that will search for solutions instead of problems. 

This is where we can help. At Sage Software, we are home to world-class ERP and CRM software that will provide effective solutions to your specific business challenges. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in.

 

Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.