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Implementing an ERP System

If you can, keep it simple

Implementing an ERP system

Using ERP software is all about efficiency. An ERP package is pre-eminently a system that gives you the opportunity to work efficiently. The ERP software ensures that you only have to enter your data once and that processes are linked together. The success of using an ERP package naturally lies in the choice of package, but often even more in how the package has been implemented.

ERP Implementation

My "Word spell checker" immediately says about “Implementation”: “Vague wording”. So actually I should use a different word ;)

Implementation is the setup/configuration of your ERP system so that it is suitable for use within your company. Think of an ERP system as blocks of functionalities. Each block is a business process and each block can be stacked in several ways. ERP systems are often represented as puzzle pieces that fit together seamlessly. In itself a good representation, but a puzzle piece only fits together in 1 way, and with an ERP system that is not the case. Often the pieces can be linked together in different ways. It is just like the game “Tetris”. Lots of blocks that you need to make fit together. Making the blocks fit is what is done during the implementation of the ERP system by an ERP Consultant.

During the implementation, it often only becomes truly clear to the end user what the possibilities and limitations of the ERP system are. Sometimes an ERP system works differently from what you had in mind or from how the processes run within your company. Together with the ERP Consultant you look for the best solution. This may be a different way of working or adapting the ERP system. Which choice is best differs from case to case.

Keep it simple

The way of working within your company is precisely why you have an edge over your competition, and you are not thinking of changing it. If that is really the case, then certainly do not do so! But make sure that during your ERP package selection you choose an ERP system that is flexible enough to implement changes at a reasonable price. One size fits all software is then immediately ruled out, but so are the somewhat less modern ERP systems that are difficult to adapt or for which you pay top dollar for every change. Choose a modern package, in which changes are reasonably easy. Open-source ERP Systems are often extremely suitable for this.

Total Cost of Ownership (TCO)

A modification in the ERP software must create value. Because keep in mind that you carry every modification in the software with you throughout the entire period that you use the software. With every update or expansion of the software, you have to take your customizations into account. The total cost of owning the software (TCO) therefore becomes higher. That does not have to be a problem at all, as long as the added value of the modification is higher.

But if you choose ERP customization, because that is what you are talking about, try to keep it simple. With every request for a modification, ask yourself: Does this modification create value for me? If you cannot answer this question easily and quickly, then I would advise you not to do it. Why would you have something made that does not deliver direct value

Is customization a bad idea?

No, you will not hear me say that. Customization can be the best solution to the problem. If you are ahead of the curve and have a different vision from others, then more often you need something that does not yet exist. Customization gives you a direct advantage and an edge over the rest.

But it certainly also depends on the ERP system. One system is not the same as another, and there are many similarities, but also differences. The difference lies in both breadth and depth. If you have a specialized package, you often miss a lot of functionality in breadth and you often have to link it to other systems. If you have a package that can do a great deal in breadth, then you sometimes lack depth. In those cases, it is often best to see whether you can add that depth through customization.

Can customization also be simple?

Absolutely, customization can also be simple. If you have determined that tailoring the software to your needs is best for your company, and it delivers more than it costs, then choose customization and try to make the solution as simple as possible for every user. It may seem obvious, but I often see things being made unnecessarily complex and therefore often not delivering value for the company. Think carefully about what you want and make sure you get good advice and guidance. Also look around to see whether there are other solutions that may be simpler. Sometimes other solutions seem less good, but because they are much simpler, they are often still the best solutions. Solutions that people actually use.

For the accountant: Odoo thinks along with you

When opening the accounting module, you arrive
directly on the dashboard
.Here a
summary of your financial
status is shown:
outstanding items, bank statements to be reconciled and bank balances.

Odoo text and image block

In addition, each journal contains a button to immediately start a new entry. This allows you to get started quickly.

Odoo also thinks along with you when processing invoices. For each supplier, you record the relevant payment terms and fiscal position. As a result, invoices automatically receive the correct due date and postings are automatically directed to the revenue account for non-domestic cost price. Naturally with the correct VAT coding and calculation.

Do you have an invoice from within the EU? The invoice then neatly states that the VAT rate is 0%. Within Odoo, the entries are created for output VAT and input VAT. Quite handy for the VAT return every month or every quarter.

Implementing an ERP System
Erwin van der Ploeg December 2, 2016
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