Why are many companies unsuccessful in ERP?

Why are many companies unsuccessful in ERP?

Whether a company can successfully implement an ERP system depends on more than just thatGrassroots employeesThe cooperation also lies inCompany managementunwavering support as wellThe ERP system itselfquality and suitability. If these three aspects can be closely coordinated,Twist into a strand of rope, which will bring unexpected positive changes to enterprises: accelerate the flow of information, improve decision-making efficiency, and reduce operating costs ......

The successful implementation of ERP system is not only a technological upgrade, but also a key step in enterprise change and innovation.

ERP template installation, you can build it yourself".

1.How can an enterprise go through the process without ERP?

Before that, let's understand what the business process looks like when the enterprise does not use ERP

Take the business of an enterprise with production business as an example:

However, when preparing for shipment, it was found that the actual inventory did not match the records and the inventory was insufficient. Urgently contact the production supervisor to arrange production to make up for the stock-out.

ButProduction SupervisorIf you find that the raw materials are also insufficient, immediately contact the purchasing department to purchase the raw materials required for production.

Because time is of the essence,Purchasing departmentFailed to compare prices with multiple ** merchants, but traded with familiar ** merchants, and requested the financial department to pay immediately for the purchase of raw materials.

After the arrival of raw materials, in order to meet urgent needs,production lineWorking overtime to ensure that orders were shipped in a timely manner, but this also led to capacity delays on other production lines.

Payment is made after the customer receives the goods (there may be a deduction due to delays).Finance DepartmentConfirmation, bookkeeping, and invoicing.

This is the process that looks like it, the enterprise is generally to this scale, and there are still some management actions, sales to write a sales order, warehouse manager to write a warehouse entry list, a purchaser to fill in a purchase order, a production supervisor to send a production work order, and finance to do accounts.

2.What problems will arise

If there is no ERP, and all these processes are done through paper and Excel, there will be too much in thisQuestion

Temporary overtime and overtime production disrupted the overall plan of the enterprise, and the customer receiving time was extended and the experience was not good

Communication between employees mainly relies on ** and WeChat, and there is a lack of standardized process control and approval mechanisms, which leads to omissions, errors and losses in the filling of sales orders, purchase orders, outbound warehousing orders and production orders

Due to errors, omissions, and mismatches in the data, there were significant inconsistencies in the reconciliation of year-end data. For example, the sales department says sales are 10 million, but the financial records only show a collection of 9 million;The production department claimed to have produced 15 million products, while the warehouse management pointed out that only 10 million goods were ......

The reason for these problems is the lack of overall planning and regulatory control of enterprise resources. Enterprises can't grasp the rules of sales and production, don't know what materials and goods are currently in the company, there are no mandatory process control measures, and there are no standardized data statistics. For example, the warehouse keeper must confirm the sales and submit the outbound order before delivery, and the purchase order must be applied by the inventory administrator, and the purchase is completed only when there is a closed loop of warehousing.

3.What to expect after the ERP goes live

After placing an order, calculate whether there is any goods in stockThere is no inventory to produce**, how much needs to be produced?How much raw material corresponds to the production of these goods?Do I need to prepare materials?How long is the preparation cycle?When and which raw materials will arrive ......

After the above problems are determined through resource adjustment, they are then handed over to the business department (procurement, warehousing, production planning, workshop department, etc.) for implementation, and the data after the business execution is completed is sent back to the ERP and flows to the financial end.

Specifically, it is manifested in:

Sales ** place an order, when placing an order, it can automatically link out the inventory of the product, if the product is in stock, the system automatically builds a delivery process to the inventory administrator;

If the product is out of stock, a production order will be automatically issued to the production department

The production order can be linked to what production raw materials are needed for the product, and automatically match with the raw material data in the inventory to identify whether the raw materials are out of stock, and build a procurement to-do process for the purchaser if they are out of stock

After the purchase is received, the production manager will be given an expected arrival time, and the production manager can adjust the production scheduling plan based on the arrival time of the raw materials

Then complete the production, delivery, customer receipt and payment, financial confirmation in the system to collect, and the order is completed.

Not really, let me give you a detailed analysis.

ERP is actually a tool to improve the management ability of enterprises.

For frontline workers:

ERP is a matter of increasing the burden in the short term, and it is necessary to use a mobile phone or computer to count and fill in the form for all the business handled, and if you fill in the non-standard or omitted to fill in, you will be fined. The workload is large, and it is not necessarily of direct benefit to one's own department.

But for managers:

After these data and processes are standardized, it is very convenient to see what data you want, and you can also adjust the operation of the enterprise through the data, and many problems that cannot be found before may be solved.

The premise of achieving the expected effect of the program is ——

1.Whether the employees cooperate with the work to ensure the accuracy of the data and the standardization of the process

For example, the product department should organize all products and the bill of materials of the products and upload them to the system

The production department should sort out all the processes of the product and what materials are needed

The inventory department should make an inventory of the warehouse, and then combine the product list and the bill of materials to do data entry

After completing the above steps, the ERP system has the basis for computing, and many enterprises have the confusion of "difficult to move an inch" in this step, the reason is:

Employees are reluctant to do it, fooling things, so much data, in a short period of time, the accuracy is definitely not high;

Even if you do it reluctantly, maybe the underlying product data is also wrong;

After going online, there will always be problems such as untimely employee data entry, wrong entry, and casual entry.

Enterprises have just begun to introduce ERP systems, and when employees are not aware of it and do not cooperate well, mistakes and problems will definitely continue, but many companies are afraid and worried that these problems will always exist, so they give up.

2.Whether the management supports and comprehensively promotes the introduction of the ERP system

The full support of the management was essential for the introduction of an ERP system, which usually required internal business process adjustments and staff training, so it may be accompanied by some inefficiencies in the early stages.

However, short-term investments are often made to usher in long-term returns. The initial decrease in efficiency can be seen as oneTransition periodBecause as the system is gradually integrated into the business process, the company will quickly adapt and gradually achieve greater efficiency.

The advantage of an ERP system is to integrate and optimize all aspects within the enterprise, from financial management to the best chain to customer relationships. This integration helps eliminate information silos, improve data accuracy, accelerate decision-making, and make businesses more resilient to market changes.

From a long-term perspective, an ERP system will bring a number of benefits to the company, including but not limited to:

Increase efficiency:By automating and integrating business processes, ERP systems are expected to improve overall efficiency within a company, reducing redundant work and errors.

Strengthen decision support:Provide real-time, accurate views of data to help management make more informed strategic and tactical decisions.

Improve customer service:Through the CRM module, companies can better understand and meet customer needs and build closer customer relationships.

Cost Reduction:Through fine resource planning and chain management, ERP systems are expected to reduce production and operating costs.

Enhance competitiveness:In a globally competitive market, having efficient and flexible business processes will help companies better adapt to market changes and maintain a competitive edge.

1.The system is disconnected from the actual business due to the way it is developed

However, there may be cases where the system does not exactly match the actual business process, and customizing the system to fit specific business needs requires additional time and resources. The following is an explanation of the shortcomings of the three ways to introduce the system

(1) Independent development

Development cycle: The process of requirements assessment, writing, joint debugging and testing, and online release must be followed, and the cycle is measured in years.

Business adaptability: Customized development, high degree of adaptability.

Iterative agility: The process needs to be re-routed, and the requirements need to be scheduled, and the cycle is long.

Cost: High labor costs and deployment costs.

Post-operation: It is difficult to operate and maintain independently.

(2) Purchase standardized products

Development cycle: Secondary development or project personnel may be required to deploy the software, and the cycle is measured in months.

Business adaptability: It solves standardized requirements, but it is difficult to achieve personalized requirements, and the degree of adaptation is low.

Iterative agility: It depends on the vendor's scheduling of requirements, and the cycle is long.

Cost: The cost of software purchase and deployment is high.

Post-operation: It is difficult to operate and maintain independently.

(3) Outsourcing development

Development cycle: The development cycle is long due to factors such as time differences, communication barriers, and partner management.

Business fit: The outsourcing team may not understand the specific business processes and needs of the enterprise, and the degree of customization of the ERP system is not enough.

Iterative agility: May be slower to respond to iterative changes than internal teams.

Increased costs: Additional resources may be required to address changes in requirements or communication issues.

Late-stage operational challenges: Late-stage system maintenance, upgrades, and support can be problematic, and outsourced teams may struggle to provide timely response and support.

2.Common shortcomings of ERP systems

When talking about enterprise resource planning (ERP) systems, we often focus on their undeniable value and effectiveness, however, there are some common drawbacks to these systems. From complexity to high costs to integration and customization challenges, the introduction of an ERP system can face many challenges

(1) Complexity

ERP systems are often quite complex, and it takes a lot of time and resources to get up and running with them. Sometimes, it takes special training for employees to really get started with the system.

(2) High cost

Introducing and maintaining an ERP system can cost a lot of money. Software licensing fees, custom development costs, training costs, and ongoing maintenance expenses are all taken into account, and these expenses can be a non-negligible part of a company's budget.

(3) Difficulty of customization

For some enterprises, it is not easy to grind a standard ERP system into a "customized version" that suits the characteristics of the enterprise itself to meet their unique business needs. Sometimes existing systems have to be hacked or custom features embedded, which not only adds overhead, but also slows down the process, which is often more time-consuming and resource-intensive than expected.

(4) Integration issues

Integrating ERP systems with existing IT infrastructure and other software is not an easy task. In order to achieve seamless integration and ensure that the ERP system can "happily cooperate" with other systems and databases, it takes a lot of energy and time. After all, it doesn't happen overnight to bring together the data, processes, and functions of different systems on a single platform and ensure that they communicate and understand each other.

(5) Data security and privacy

ERP systems often contain a lot of sensitive information, and any even slight security breach can lead to huge risks and losses. After all, these systems contain a company's financial data, customer information, and even employees' personal data, and if they are attacked or compromised, the consequences can be devastating. Protecting this information and ensuring that it is not subject to unauthorized access or external threats is something that businesses must attach great importance to when introducing an ERP system.

The level of single-point function, interaction, and visual experience design of Jiandao Cloud is at the forefront of the industry, and the focus of the design is not IT personnel, but front-line business personnel. Therefore, it is convenient to build forms and fill in data, and each role is highly user-friendly.

Let's find out firstWhy is Jiandao Cloud better than traditional ERP software?

1.Ease of use

Benchmarking standard SaaS, we make a general solution that includes "core requirements", which is the most difficult to use and user-friendly and easy to use.

Fill in the data in the form as simple and efficient as possibleImprove business efficiency and be truly accepted by frontline personnel.

Warehouse management systemLanding abilityIt determines whether the enterprise can quickly use the system and achieve small steps, rather than having to have everything in place before starting the trial.

Hands-on skillsThe easier it is to get started, the less resistance to implementation, and the simple and easy-to-understand system interface and operation process will reduce the discomfort of employees in the process of learning and adapting to the new system.

2 hours to land a set of purchase, sale and storage system.

4 weeks to land a set of first-class business management system.

In 3 months, 3 people completed the company's digital construction.

These are all real data, and Zero** enables even business personnel who have no programming foundation to quickly get started with the system.

2.Value for money

Through this solution, ERP business can be quickly implemented for free, charged according to the number of people, and the cost of new scenario applications is 0, so as to truly realize all in one

In a business environment,"Free forever".The concept is unrealistic. The so-called "free" is often just a magnet for usersDisguise- Completely free systems often limit functionality or usage rights and are unable to meet the growing needs of businesses.

And JDY deliversFree, Standard, Enterprise, and Dedicated Editions4 versions. The free version is availableIt can be used by up to 30 peopleThe Standard Edition provides complete advanced functions from 5040 years, the Enterprise Edition provides a more comprehensive open platform, and the Dedicated Edition supports private deployment, all of which support the growth of functions & people.

Adhering to the principle of "free to use, paid to achieve greater value", the product ** is much lower than the common purchase, sale and inventory products on the market.

3.Personalization

It is built with zero ** PaaS and has strong customization capabilities.

Forms, processes, dashboards, business rules, permissions, etc. can all be customized and edited, so as to achieve real implementation.

Ensure that the system is customized and configured to match the company's actual needs and streamline the process if necessary. The system should be easy to use, not overly cumbersome.

Take the platform that our company is using as an example, as:Zero** productIts biggest feature is that it builds and modifies applications to meet the needs of enterprises of different industries, types and scales. Enterprises can deploy corresponding systems according to the actual situation, such as the following templates to choose from

4.Platform capabilities

It can not only be used as ERP, but also as a management platform, it can build applications covering the whole scenario of enterprise management to achieve data exchange and comprehensive management.

The open platform provides numerous interfaces to break down data barriers with other systems.

Do you have to get rid of the system software you used before using the JDY platform?However, there was a lot of data ....... in the previous system

Of course not, JDY supports API interface to do data opening to ensure that there is good integration between ERP system and other key systems. For example, it can be connected to other JDY systems, or the data and processes between third-party products and JDY can be connected, so as to improve business efficiency and further informatization.

Not only that, employees don't need **app, nail Qifei, WeChat applet, and WeChat *** all provide portal entrances;The product supports scanning code filling and uploading, which is convenient for front-line personnel to fill in daily business data and reduce the rejection of software by front-line personnel.

5.Safe and stable

JDY takes security and stability as the highest priority goal, and ensures information security through multiple measures

(1) Physical Security:The servers are deployed on the Alibaba Cloud platform and are protected by Cloud Shield to ensure that the servers are safe and reliable.

(2) Cybersecurity:Network access control, all production environment servers cannot be directly accessed through external networks.

(3) Data security:Core data encryption, multi-point disaster backup, crawler protocol processing, ......

(4) Operation and maintenance securityIn terms of operation and maintenance management, JDY has improved a set of practical operation and maintenance processes and emergency disaster handling mechanisms.

(5) National Information Security Graded Protection ** Certification:China's most authoritative information product security level qualification certification.

ERP system facing:Manufacturing, coveredCustomer management, sales management, procurement management, technical management, production management, inventory managementSix main scenarios.

Through six core modules, an intelligent solution is formed to provide information management in the whole process from order to delivery. Break through the information barriers of purchase, sales and inventory and production management, help manufacturing enterprises reduce manufacturing costs, improve collaboration efficiency, and ensure product quality. Comprehensively open up the whole process of sales, procurement, and production, and customize the system to meet business needs, so as to easily control the overall situation of the enterprise.

It mainly solves the three major pain points of traditional manufacturing scenarios:

High production cost: due to the difficulty of grasping inventory information, resulting in serious material waste;

Low collaboration efficiency: due to the opacity of orders and production data, the communication between employees is not timely

Difficulty in quality control: due to the lack of a perfect quality supervision system, quality problems emerge one after another.

1.Customer Management Module

Statistics and maintenance of customer information: the salesman enters the customer information into the system for easy statistics and inquiry

Customer information analysis and strategic decision-making: According to data analysis, real-time insight into customer information changes, such as the increase or decrease of order volume, to make reasonable decisions;

Customer visit follow-up record: sales to customer follow-up and visit to form a record, easy to query and reference.

2.Sales Management Module

Sales sign a contract with the customer to form an order;

According to the sales contract, the salesman makes a business flow order, clarifies the material BOM and material requirements of the corresponding products in the contract, and specifies the materials available in the warehouse for inventory locking, and determines the details of the materials to be purchased

Sales according to the content of the order for product delivery and pre-shipment quality inspection, if there are unqualified products for return;

According to the data of contract orders, delivery returns, and quality inspections, sales performance reports are generated, employees can inquire about their commissions, and managers can gain insight into changes in sales performance.

3.Procurement Management Module

According to the material procurement needs generated by the business flow order, or some non-order material procurement needs, the procurement contract is uniformly formulated

Carry out delivery time control and logistics arrival tracking for procurement contracts, initiate material procurement and warehousing, and purchase returns and compensation for quality objection materials

The salesman will enter the business information into the system, and analyze the business situation to make the best procurement choice

Generate procurement reports according to the procurement situation and view procurement data in real time.

4.Technical Management Module

According to the production demand generated by the business flow order, the production plan is reasonably formulated and the production dispatch is carried out

According to the production plan, the production picking is carried out in advance, the production is scheduled on time, and the purchase application is initiated if the material is insufficient

Employees report on completion, record working hours and production performance, and conduct quality inspection on finished products, and count the output and the number of qualified finished products.

5.Production management module

According to the production demand generated by the business flow order, the production plan is reasonably formulated and the production dispatch is carried out

According to the production plan, the production picking is carried out in advance, the production is scheduled on time, and the purchase application is initiated if the material is insufficient

Employees report on completion, record working hours and production performance, and conduct quality inspection on finished products, and count the output and the number of qualified finished products.

6.Inventory control module

Review and complete physical inventory updates based on inbound and outbound requisitions initiated by purchasing, production, and sales

Carry out other inbound and outbound processing for some materials, and update the system inventory;

Regular inventory to ensure inventory accuracy;

Perform morphological conversion of some materials and update the system inventory.

That's all for that, I hope you find it helpful.