ERP System for Hong Kong (All You Need to Know)

• What is an ERP System for Hong Kong?
• Purpose of Implementing ERP
• How Does ERP Help Businesses?
• How ERP Helps in Enhanced Analytics and Business Reporting
• What is ERP Implementation and How is it Done?
• Best Practices for ERP Implementation / Integration / Migration
• The Failure Rate for ERP Implementation
• How to Minimize Implementation Failure of the ERP
• Consulting Services for ERP
• ERP Modules and Features
• ERP Workflow
• ERP Strategy
• Types of ERP
• What is an ERP Database?
• ERP Development Process
• Lean ERP and Development
• ERP Module Integration and Pricing
• Conclusion
• Frequently Asked Questions

What is an ERP System for Hong Kong?

ERP (Enterprise Resource Planning) for Hong Kong is an integrated all-in-one business management suite software solution that can be used in Hong Kong. It is primarily used to manage business processes and operations across different business departments such as finance, procurement, supply chain, distribution, human resources and so forth.

All the departmental activities are integrated and aligned in such a way that enables the complete business to be analysed on a single screen. The main purpose for implementing an ERP system is that it allows business management to better analyze and plan business activities. By doing this, it will lead to improved business efficiency and improved profitability.

Purpose of Implementing ERP

With the successful implementation of an ERP system companies aim to achieve the following:

• Resource planning

  Resource planning is the ultimate reason for the implementation of an ERP system. There are three areas where resource optimization can be planned. Firstly, resource optimization can be planned in business intelligence. In this way, business intelligence utilizes AI to give insights and make decisions in order to improve strategic and operational performance. Secondly, adaptability refers to being flexible and visible which can be achieved by an ERP platform while supporting fast and speedy input. Lastly, it can lead to process acceleration as processes and data can be connected which helps to ensure business agility.

• Warehouse management

  Since an ERP system is based on the principle of integration and process management, there are various aspects of warehouse management which help to achieve this result. These various aspects include, order management, production management, threshold management, counting or stocking, receiving, classification, storage, replenishment management, goods preparation and dispatching, among others.

• Accounting

  Accounting is the backbone of any business. One major challenge in relation to accounting is that it is necessary to pull data from different organizational departments. As an example, the accounting department needs to extract data and transactions from different departments such as procurement, treasury, sales and marketing, HR and payroll, warehousing as well as other departmental data. This enables the efficiency of the accounting processes which in turn leads to more accuracy of financial reporting.

• Process integration

  Enhanced operational efficiency is achieved when the business processes are integrated. This lies in the fact that processes are automatically operated which lead to lower chances of error and friction. For example, the sales are recorded in the ERP system. This automatically updates the inventory module which will lead to better warehouse management and decision making.

• Compliance

  The quality of compliance is linked with the quality of the data maintained. So therefore, if the data quality is good, then this will lead to improved compliance and vice versa. The implementation of an ERP leads to enhanced data management in terms of data visibility, data traceability and data security. The ERP itself does not lead to improved compliance, but rather it leads to improved data management which in turn leads to structured data, reduced errors in data, and an element of consistency and immediate traceability. This makes the compliance enhanced by the implementation of a ERP system.

• Procurement

  Procurement refers to the process of managing buying functions. With an ERP system, the procurement can be linked which means that the complete buying process is integrated and therefore can be analyzed on a single screen. This analysis can be carried out on the basis of budgets, expenditures, and managing the entire work flow from beginning to end. Furthermore, ERP also can help in the operational aspects of business management. Just as an example, a purchase order can be created in a few clicks, delivery can be monitored and the ERP can be integrated with the supplier database. These innovative features all lead to a higher level of planning, higher management control, and an overall efficient purchasing function.

• Supply chain

  In the inventory environment, automatic updates in the inventory ledger and list will enable effective record management, analysis, purchase decision- making, threshold maintenance and an overall efficient inventory management system.

• Process optimization

  If processes are integrated, it will lead to optimal performance and enhanced productivity. That is why the biggest optimization of the processes is integration. This increase in productivity results in cost cuts, lower-cost cards and higher profit for the business. Since all modules in the ERP system are linked together, which helps in accessing real-time data, process optimizations can be achieved by the implementation of the ERP system.

All these processes help businesses to achieve the purpose of their existence which is to have a highly efficient business with efficient organizational processes. Let us now understand how an ERP can help with businesses.

How Does ERP Help Businesses?

ERP helps businesses in the following ways:

• Enhanced decision making

  Decision making is enhanced due to the feature of the ERP system that offers a comprehensive dashboard to monitor and control business operations. This enables business management to understand the complete picture of the business on a single screen.

• Enhanced operational visibility

  The operational module helps management to understand what is happening with the business. Examples include, how many orders are fulfilled as well as the progress of existing orders. This means that operational visibility is increased which then leads to higher operational performance and better financial performance.

• Competitive edge in the industry

  Having a competitive edge means that you can manage the business more efficiently than your competitors as well as having the ability to manufacture goods at a higher speed than your competitors. This competitive advantage can be achieved with the implementation of the ERP system.

• Real-time reporting

  With an ERP system, decisions can be made quickly and this allows the business to progress and move ahead. This is because reports can be accessed in a few clicks due to the ability of the ERP to interlink modules and features on a timely basis.

All these benefits achieved by the ERP implementation are driven by the modules in the ERP. Following will be a discussion to understand how these modules work.

• Accounting module

  In a standard ERP, the accounting module is divided into various screens such as purchase recoding, sales, treasury, journal entries and so forth. All these features are linked with each other as well as other operational modules. Take the example of a warehouse receiving and updating a delivery for product A. The ERP system will automatically update inventory, accounts payable and all other impacts of this delivery. The system handles all of the accounting and operational aspects of these transactions. In this way, real time accounting reports such as trial balance, financial statements, receivables aging, payables aging and forecasted cash flow, among others, can be produced.

• Project management

  Project management involves a set of specific and one-off activities that are designed to achieve certain project results. In the situation of managing a project, a budget will firstly need to be set and resources will need to be directed to make sure that they are utilized in the most efficient and most effective manner possible. The implementation of ERP helps in this regard, to enable efficient core project management processes. Such examples that highlight how ERP can enable efficient project management include, setting scope and tracking project completion, tracking project progress with respect to starting and ending time, allocation of resources to the project to ensure that each team member is performing efficiently, identifying and managing risk, setting budget and securing approvals from stakeholders and finally, ensuring project related quality standards are applied effectively.

• Finance module

  The finance module of an ERP includes the ability to generate comprehensive reports on revenue management, profitability analysis, investment management, core financial management, standard accounting reports, general ledger maintenance, revenue and expense reporting, and the handling of the overall accounting and finance transactions. In addition to this, there are various other modules in the ERP system that are finance- supportive such as, procurement, investment management, finance management, production planning, receivables, revenue recognition, collection and multiple business management processes.

• Inventory management

  Overall inventory management can take place from the inventory module of the ERP system. It helps in areas such as planning, operations, logistics, operations and also in the area of real-time management of inventory reports. These particular features of the inventory management lead to enhanced chain transparency, improved reporting (COGS area), accuracy in the stock count process, quality checks on the inventory function, overall inventory planning, cycle counting and others.

• HR (Human Resources)

  The HR module of the ERP system helps to control and manage overall HR activities by overseeing all the aspects and activities of HR. The HR activities that are monitored include, recruitment, leave management, shift management, attendance management, payroll management, appraisals, promotions and all other aspects of human resource management. A handy feature of the HR module, is that the HR officer can just enter the name of the employee and the module will pull up all relevant details about that member of staff on the screen. Information relating to the employee might include service tenure, salary trend, leave balance and other pertinent information regarding that person. The entire HR department is automated with real-time reports and superb integration. This integrated system means that it is automatically updated from the attendance system. It can also deduct salary (if required), make tax deductions (at a preset rate), deduct contributions in the employment schemes, and also allows the calculation of the final payment to be made.

• Analytics and business reporting

  The quality of decisions made about the business is highly dependent on the quality of the reports that are presented to management. There is a higher chance of effective business decisions made if the reports are comprehensive, highly relevant and based on facts that can lead to the right direction. With this high quality reporting, it can lead to the financial prosperity of the business. The next question that arises, is how ERP implementation can help with enhanced analytics and business reporting.

How ERP Helps in Enhanced Analytics and Business Reporting

• Higher integration and automation

  In the context of business reporting, integration refers to modules that are connected with each other which allows the whole system to be updated if there is an update in any one of the modules. This enables the ERP system to work fast while producing highly accurate results in real-time.

• Trend analysis and pattern study

  Trend analysis and pattern studies helps in the forecasting of future movement of funds and figures. The system is designed to automatically calculate and present forecast figures. To enable customization, there is the ability to manually add information to tailor it to the business needs.

• Real-time reporting

  Due to the integrated operational and reporting modules, the ERP system is capable of real-time reporting. This useful capability is strategically helpful with managing overall business, making critical decisions, and identifying if there are any opportunities that can materialize which will improve the future of the business.

• Higher financial controls

  One basic purpose of the implementation of an ERP is to have higher financial control. The implementation comes with various financial applications, predictions applications and comprehensive data management.

• Strong financial analysis and reporting

  An ERP system is designed to generate comprehensive financial analysis, provide comprehensive insights and make critical business decisions. An advantageous part of the ERP is that it enables management to see valuable insights so that they can understand where the business is currently standing and identify areas in the business that can be improved upon. This is the fundamental goal of using an ERP system. Another point to note is that results produced by the ERP are dependent on the quality of the implementation process.

Next will be a discussion on how a ERP can be implemented.

What is ERP Implementation and How is it Done?

The ERP implementation process involves the transferring of all the data, including financial, non-financial, process mapping, transactional data and all the operational and strategic modules, into the actual ERP organizational software. If this step of implementation is executed efficiently, this will lead to the successful implementation and operational efficiency of the overall ERP.

This process of ERP implementation is separated into six phases that include the following:

1. Discovery and planning for the ERP implementation

   The discovery and planning phase refers to the undertaking of the organizational requirements for ERP implementation. You might need to consider if you need to implement various features or modules or if there is only a requirement to implement a few selected modules. Take the example of an accounting module. You will need to consider if this accounting module needs to be highly complicated, integrated and customized. If these attributes are not necessary for your business, then a standard accounting module can be involved in the implementation.

   In this phase, there are a number of things that need to be researched. For instance, target dates for the implementation, resources required for the implementation, the complete layout program and any challenges that a team might face while implementing the ERP.

   This is also the phase where a decision must be made on whether to implement an ERP system that will be based on the cloud, or whether the data will be hosted on the organization’s premises.

2. Design of the workflows and designs

   This stage involves drafting processes, workflows, and how the system is expected to work. There is a need to understand current processes, find the gaps and develop new processes that will lead to improvement and higher efficacy at the level of the organisation. This will enable an efficient and operational system to be developed. During this design process, third-party integration with the system of the suppliers and/or customers can be planned to further ensure that the process is enhanced, that idle time is minimized and that productive time is improved.

3. Development of the modules

   Once the ERP team decides on the final design that will implement the ERP, it will be the time to actually implement the software. The process and system integrations can be executed in line with the design requirements. For instance, there may be a need to install some additional hardware to support the integration of the execution of the processes. Also, often in this phase, data migration, transferring or loading is done to ensure that the design is compatible with the current operational business modules and transactions.

4. Testing for the systems implemented

   This step involves the testing of the system with dummy transactions to see if the development phase was ideal or if there is a need to fix some bugs in the system. These dummy transactions are not posted in the live database but they are monitored to analyze and ensure the correct development of the system. The testing can range from basic feature testing to rigorous testing in terms of process integrations. This will also enable the testers to see if there are any adverse or incorrect impacts on transactions. At this stage, it is helpful to invite some current employees in testing as they are more equipped to deal with the daily transactions and the impacts on the data.

   Once the bugs have been tested and the system is deemed to be efficient, it will be time to ensure that the users of the system have sufficient understanding to execute tasks. Once all these pre-checks are ticked, the next phase will be the deployment of the system.

5. Deployment of the system

   The deployment stage is the important stage of when the system goes live. At this time, the transactions and events are recorded in the newly implemented system. Often, there may be difficulty for the employees in the organization to accept change and be adaptable, despite efforts to motivate and retrain them. If this is the case, then special workshops can be conducted so that the staff will be able to see the bigger picture and accept that the system has many benefits that will enable the enhancement of the overall quality of processes, while also making their tasks more streamlined.

   Sometimes, organizations may implement deployment safeguards. This means that they may run both the newly implemented ERP along with the older system, simultaneously. This helps to ensure that the data quality and maintenance is not compromised.

   Secondly, some organizations will deploy some selected modules in the ERP. For instance, some critical modules are deployed at the start and the subsequent features are activated.

6. Support and updates for the system

   Since is it necessary to ensure that user needs are met on time and that immediate support is available at all times, support is an essential component of the overall ERP implementation. There may also be a need to deploy additional modules over time. This means that employees will need to go through training at different stages when the modules are introduced.

All of these six steps of the implementation of the ERP are crucial and carry significant weight. In addition to the process of the implementation of the ERP, there is a necessity to include some of the best practices, which will now be discussed.

Best Practices for ERP Implementation / Integration / Migration

Following is a list of best practices that help to ensure that the ERP system is integrated and migrated in an efficient manner:

• Go with comprehensive planning

  There are different aspects of ERP planing that create a comprehensive foundation for the overall implementation. These aspects include, backing of overall data and transactions, and allocating reasonable resources like the project team and other personnel that help to execute the overall process.

• Acquire support and training

  In order to make sure that the employees are satisfied, proper training on how to use the system and an education on how it works to improve the organisational flow, must be given. Some time might be needed to allow them to be trained, understand the system and learn how to execute things efficiently with the newly implemented system. It is therefore beneficial if adequate training is provided to the employees in order to expect optimal performance from them.

• Ensure that your data is clean

  Clean data means that the data needs to be in a standard format, ready to be transferred or migrated, and free from errors. The date of the last transactions must be the same for all the data in the master file. It is important to stress that the quality of the data will impact directly on the overall ERP implementation.

• Migrate data carefully

  Data migration is one of the most critical as well as the most technical step of the ERP implementation. Even a minor mistake at this stage can lead to negative impacts on the newly implemented software. To avoid this potential problem, before migrating data, there is the need to ensure that thorough analysis is conducted, a data migration plan is prepared, quality checks are performed on the data, the migration process is documented and the data migration process is monitored to ensure that there are no significant inconsistencies or errors.

If ERP is implemented with these best practices in mind, there will be less chance of failure and the system will be able to fulfil its purpose, which is to enhance the business processes and operations.

Next will be a discussion on the failure rate of the ERP implementation processes.

The Failure Rate for ERP Implementation

The average failure rate of ERP implementation is at a high of 50-75%. Such a high rate of failure will most likely be due to inadequate planing, not being aware of the risks involved with the implementation process, a lack of ownership of the project, rushing to implement the project without doing adequate research and also underestimating the preliminary work of the project. Other oversights include, not defining what needs to be achieved with the implementation process, not conducting sufficient user training and lack of resources. These shortcomings have been cited as the top reasons for ERP implementation failure.

To achieve a good outcome, adopting certain practices and safeguards can help to mitigate any risk of implementation failure.

How to Minimize Implementation Failure of the ERP

Taking into account the following tips can help to minimize the rate of failure in terms of ERP implementation:

• Don’t ignore planning

  Planning is a wider term in the context of ERP implementation. It deals with setting the scope, deciding which of the modules need to be implemented, the allocation of resources, hiring of a vendor or making a project team, creating a change management plan, deciding controls for the testing and validation of the database, implementing best practices to migrate the data, and an allocation of resources to ensure employees are given sufficient training to make sure that all things remain streamlined.

  It has also been documented that there is an increasing gap between the allocated budget and the expected performance of the system. This means that It is highly desirable to allocate sufficient funds at the start of the project to achieve the desired results from implementation.

• Analyze the vendor's competence and experience

  There needs to be a well thought out consideration of the competence and professional experience of the vendor before hiring them and proceeding with the ERP implementation. It will also help in your favour to choose a vendor that has good experience in the industry or sector that your business is in.

• Ensure rigorous testing before going live

  Rigorous and comprehensive testing is the backbone of a successful ERP implementation process. Accurate testing is a great way to help avoid failure in the process and the following needs to be avoided.

  • * The wrong people are doing the testing for the ERP implementation
  • * The business is not doing testing
  • * Testing is not being done in the right way

• Have comprehensive plans

  It is wise to make sure that there is a comprehensive plan in terms of the following:

  • * Setting ERP scope and budget
  • * Creating and continuously monitoring change management plans
  • * Planning the smooth migration of the data
  • * Creating a testing plan before going live

As is evident by the high failure rate, it can often be extremely challenging to implement an ERP for any business. This is due to the fact that there are complex modules and features. This is why in some situations there may be a beneficial need to hire a consultancy. This will now be discussed.

Consulting Services for ERP

Using consulting services is a great way to improve the operational and strategic performance in terms of business execution. Consulting services have the relevant experience and are generally used in the following areas:

• Customized solutions for the business
• Overall assessment and process evaluation
• Setting overall strategy and providing guidance
• Replacements and upgrades in the features and modules

ERP Modules and Features

ERP modules work on the basis of integration which makes it quick, smart and flexible in the running of smooth processes. There are five main, important modules in a ERP which will now be discussed:

• Accounting / financial management

  The typical numbers and figures of the business can be divided into two main areas that include firstly, operational numbers (accounting), and secondly, strategic numbers (financial management). In simple terms, accounting records and reports on the operational performance of the business. On the other hand, financial management is concerned with strategic aspects of the business such as managing sources of finance and making financial and strategic decisions.

  With the implementation of ERP, both these aspects are supported. The accounting module is deigned with features in mind that include general ledgers, accounts receivable reporting, account payables reporting, payroll management, bank reconciliation and all other aspects of accounting. On the contrary, financial management features include advanced data analytics, actionable insights, budget analysis, financial status, projects as well as others. All of these aspects help to instill comprehensive financial management and helps to keep the desired ratio of debt and equity in terms of business financing.

  Best of breed ERP alternative for accounting:

  Accounting Software for Hong Kong (All You Need to Know)

• Inventory management module

  With the inventory management module, the business is able to manage and monitor inventory in different ways. For example, the module can help with warehouse management, stock count, managing stock movement, managing purchase orders, sales orders, production management, stock trading, stock transfer or movement, inventory intelligence reports, analytics and overall inventory management. All of these features and functions help to enhance overall business performance, financial status and business processes.

  Best of breed ERP alternative for warehouse management:

  Inventory Management Software for Hong Kong (All You Need to Know)

• Marketing automation module

  The marketing automation model is designed to take care of the marketing function automatically. It can send automatic emails, customize emails in line with the target customer list, send an auto response to customer queries, pick up the sales leads, reply to the sales leads, send follow-up emails and generally take care of the marketing functions. This function is especially significant for larger companies and businesses. This is because it helps to manage the marketing function while significantly leading to a decrease in manual work and labour.

• Customer relationship module

  Customer relationship module helps with the interaction with the customers. One important aspect is that it enables the ability to deal with leads and ensures that it is moved from one point to another. Input is gathered in different ways such as by phone, direct email from customers, meeting notes and other communication aspects. This module is able to align sales and marketing attribution, ensuring data enrichment, support tracking, sales email tracking and monitoring the status of queries received from the customers.

  By aligning the sales and marketing attribution, the system is designed to take leads from the source, rate the leads or allocate a score, identity which leads have a higher potential for conversion into sales, where the lead is coming from, how the potential customer engaged with their leads, the customer profile, behaviour data, segmentation as well as other aspects. There will be a greater ability to understand the potential customer, understand their needs from the business and what can be done to close the lead into sales.

  Another optimal aspect of customer relationship module is data enrichment. This part of the system records crucial customer data in the system such as customer name, company revenue, contact details and other relevant data. All this information enables the business to keep valuable records and information which allows the engagement of these interested customers in the business.

  Best of breed ERP alternative for customer management:

  CRM Software for Hong Kong (All You Need to Know)

• Human resources module

  The functions and features of human resource management is enhanced by the ERP system. Within this module, there is the ability to store a database of the employees of the business. Along with the employee profile, the related information which can stored and accessed include, attendance, leave, performance evaluation, appraisal record and interview, salary and compensation details, contact information as well as others. Another handy feature of this module is that payroll processing, the generation of salary slips and tax can be calculated and applied. This shows that a complete HR function can be monitored from the HR module.

Even though the previous five modules have been discussed separately, the best attribute of an ERP is that all these modules and features are able to be interlinked which results in a complete workflow of systems and processes.

ERP Workflow

The overall operational efficiency of a business is enhanced by an ERP workflow as it creates logical and integrated processes. With the workflow, processes are drafted, interlinked and connected which lead to reduced operational time while enabling real-time visibility of operations. Decision making can be made swiftly as the workflow allows the identification of any opportunities or challenges. In addition, successful workflow results in easier collaboration, real-time reporting, analytics and a quick overview of the systems and processes.

Understanding the business, controls and risks along with designing effective risk management strategies are outlined in the workflow which leads to effective processes and business management.

In addition to designing an effective workflow, an appropriate strategy for implementation must also be made in line with organizational requirements.

ERP Strategy

To enable to get the best results, it is important to document an ERP strategy. Most importantly, since strategy affects the organization, there is a need to align the interests of the organizational leadership. Typically, there are four common strategies in the implementation of ERP strategy which will now be discussed:

• Single step method

  This method is also known as a Big Bang Strategy. In this method, an old system is completely transferred to the ERP all at once. This means that all user modules are transferred to the new system at the same time. There are advantages as well as disadvantages to this approach. The advantage is that productivity is able to be achieved in a short period of time. The downside is that problems in the operating system can lead to significant problems in the operations. That is why, if you decide to adopt this strategy for your business, it is highly advisable to ensure appropriate user training as well as system development.

• Phased rollout strategy

  This phased rollout strategy occurs when the business implements the ERP in phases. So modules may be implemented at the start and later, other modules are added gradually. The main advantage of this rollout is that the employees and staff of the business are able to spend time to interact with the system. This will enable skills to be developed before the full implementation of the system. The drawback to this strategy is that a significant amount of time may be needed to implement the system and it can be a comparatively slow process.

• Parallel Run

  A parallel run strategy occurs when the business decides to keep both systems (which are the existing system and the newly implemented ERP software), running and operational for some limited time. To put it simply, it implements a new system but also keeps the legacy, or the initial system, operational for some time. The greatest part of this strategy is that if there is some problem or anomaly with the newly implemented ERP, the data and figures of the legacy system can be used and reverted to. With this strategy, the business will have to incur the cost of running two parallel systems as there could be increased administrative hurdles. In other words, the same data will need to be entered into the two systems separately. This will likely lead to the chance of errors in data entry and data management.

• Hybrid implementation strategy

  A hybrid strategy is when the business adopts both elements of the single-step method and parallel runs. An example is when some core modules are implemented at once and additional modules are added from time to time.

Whichever strategy is adopted, to enhance the overall effectiveness of the system, it is necessary for the strategy to be compatible with the budget and the needs of the organization. The type of ERP to be implemented should also be analyzed closely and a choice in relation to hosting must be made. This will now be discussed.

Types of ERP

There are generally three types of ERP’s in terms of hosting which include:

• Cloud-based ERP

  When the organization’s data is stored on a remote server, this is known as cloud-based hosting. It is a SAAS-based module where the business pays charges to the company that provides the hosting service. It is the responsibility of the service provider, that is hosting the service, to make sure that there is adequate maintenance, storage and security. This type of ERP is highly flexible and easy to use and access, as all that is required is an internet connection and a computer system.

• On-premises ERP

  This is when data is stored in the servers that are located in the business office’s premises and it involves on-site hosting. It is the business that is responsible for taking care of the system’s maintenance and security as well as ensuring that all things remain operational. By implementing this type of ERP, it ensures that the business has higher control and ownership of the data.

• Hybrid model

  There are certain situations where the business opts to host some modules which are cloud-based and other modules hosted on the premises. This might be due to the fact that the hosting provider may not be able to provide full integration with third-party apps. So the business may decide to host certain modules on the premises.

What is an ERP Database?

A ERP database is a single master record for all the business processes, operations and transactions. These operations and processes include, manufacturing, financials, supply chain, administrative and support activities. The beauty of having this master record or unified data is that processes can easily be automated which leads to higher automation as well as enhanced operational efficiency. Moreover, business managers are able to make quick decisions based on data trend and patterns, all due to the structured availability of real-time data and insights. The ERP database can also importantly be used in the development process.

ERP Development Process

ERP development means that the system is designed in line with the business requirements. There are specific stages in the development process that include:

1. 1. Gathering and understanding the requirements
2. 2. Developing a supportive system of workflow
3. 3. The actual development of the system using computer languages
4. 4. Testing of the system and training of the users
5. 5. Actual deployment of the system in terms of data migration and integration
6. 6. Maintenance in terms of providing ongoing support and updates, as and when they are needed

It is equally important to note that development is one of the most technical stages of ERP implementation. In this stage, processes need to be integrated in order to minimize resource wastages. These aspects are called lean ERP development and will now be discussed.

Lean ERP and Development

Lean ERP refers to creating a system of processes in which friction and wastage is reduced and this enables overall efficiency of the system. Lean development is mostly aligned with the phased strategy of the ERP implementation. This is because this strategy enables the business to identify problems or issues at the early stage of the process of implementation. When the system is developed in phases, there is higher flexibility. In order to make the system lean, smart and efficient, it is necessary to link or integrate the processes. The downside to a lean and integrated system is that it may be more costly than a basic one.

ERP Module Integration and Pricing

The cost of ERP will be higher with the more modules that are to be integrated. Similarly, the cost is dependent on whether the integration is done in-house or if a third-party vendor is hired to help with the process. Generally, the price of ERP ranges from approximately HK$20,000 to HK$10,000,000 and may even be higher. The price is dependant on factors such as the complexity of the organizational processes, module integrations, perceived value added with the implementation, whether the hosting is cloud-based or on premises as well as other such factors.

Conclusion

ERP is an integrated business management software that is designed to streamline different processes and operations of the business. With the implementation of the system, it provides smarter operational management due to its high integration. The basis of the system is the use of modules of different departments that are interlinked and designed to operate efficiently while also ensuring that work is executed in a timely fashion.

The main benefit of an ERP system is that it helps to ensure process integration, process management, warehouse management, procurement, process optimization, customer relationship management among others. The customization of the software is dependant on the business requirements. Take the example of a business that operates in an inventory incentive business. For this business, it is wise to implement comprehensive inventory features.

In order to successfully implement an ERP solution, it is ideal to follow best practices and also ensure that the migration from an existing system to a new ERP system is professionally executed. System testing and user training are other facets that will help in the overall success of the implementation and therefore this cannot be ignored.

Since the decision to implement an ERP system is cost heavy and time consuming, there are some preliminary considerations that must be made before implementing the system. These include the scope of the work, ERP implementation strategy, budget allocation and process designs.

Frequently Asked Questions

Is there an ERP for small businesses and is it worth it for SMBs?

The answer to this question is “yes”. There are various ERP solutions that can be successfully used for small and medium businesses. Implementation of ERP for these organizations can help to optimize processes, get real-time reports, and make strategic business decisions on the basis of real-time data. Since smaller businesses may only require limited features, this will also mean that the implementation cost will be expected to be limited also.

Good to know:

As a small business owner, you don’t have to spend time and energy for implementation of an ERP. We can offer you our best of breed ERP alternative for small business in Hong Kong: an easy-to-use solution that comes equipped with features such as a customer database, inventory, invoicing as well as accounting features: Inv24: Simple invoice software for Hong Kong

Are there ERP solutions for logistics/supply chain management?

The answer is “yes” there are various ERP solutions that can be used for logistics or supply chain management. The functions that business managers can utilize are management of the supply chain, inventory management, distribution of goods and transportation expenses. Accounting for this is also another feature that this ERP system has.

Are there ERP solutions for manufacturing?

Yes there are various ERP solutions on the market that are designed especially to be successfully used in the manufacturing process. The advantage of ERP systems in this industry are that it allows the business manager to control the flow of raw material, enhance the quality of the production process, cost card, cost inspection, cost control and other various activities related to manufacturing.

Are there ERP solutions for construction companies?

ERP solutions have been developed for construction companies. This type of ERP system enables the management to oversee different construction activities. Such activities include, budget, change orders, cost, expense distribution, project analysis, material and service procurement, and multiple other reports that can help in the construction process.

Are there ERP solutions for real estate companies?

ERP solutions have also been designed for real estate companies. The system will enable real estate business managers to simultaneously manage all aspects of real estate like accounting, lease management and the overall property management function.

Is there ERP for Pharma companies?

Yes, ERP solutions have also been designed for Pharma companies. The features of the system that are available in this industry include a comprehensive system to manage production, warehousing and distribution, expiry tracking, costing, application of discount policy and so forth.

Are there ERP solutions for distributions companies?

The answer is “yes” there are multiple ERP solutions for distribution companies. These solutions provide comprehensive features in terms of inventory management, such as warehousing, distribution, movement tracking and much more.

Are there ERP solutions for startups?

Startups also have ERP solutions tailored for them. These solutions are directed to manage projects, financing needs of the business, scalability of the operations and finance, and other operational aspects of the startup like procurement, production and distribution.

Are there ERP solutions for apparel or garment management?

Yes, the apparel and garment business have ERP solutions which are available to them. The features include the control of aspects such as tracking design and size production, warehousing and distribution.

Are there ERP solutions for e-commerce?

ERP solutions are offered for e-commerce as well. Business managers can utilize the system by managing customer orders, placing orders with a supplier, managing inventory in the warehouse, tracking distribution of goods to the customers and much more.