Visual South Insights

On-premise vs. cloud ERP implementation

A cloud ERP implementation requires the same elements as an on-premise implementation from a methodology perspective, but not from a technical perspective. The difference lies in the level of responsibility.

How to know when ERP integrations with third-party applications are appropriate

The upside of buying enterprise resource planning (ERP) software is the economy of scale. Since it is written for the masses and not customized for one company, the cost per user plummets. For example, Microsoft Office certainly costs more to develop than the few hundred dollars it costs to license. One of the other upsides is that thousands of users create a robust community that quickly flushes out weaknesses in functionality, helping the software become stronger. The downside is that the ERP may not be totally in sync with the company’s culture, and that’s when most people start to think about ERP integrations. To give an instance, what some may call a production order, the ERP may refer to as a work order. Some of the ERP system’s screens may be laid out differently than what the company would have preferred. Or maybe the processes the software supports are not in total alignment with the company’s current processes.

Some background before we begin

The process to evaluate and choose an ERP software is not a simple task; as a matter of fact, it is a complex task. Because of the risk and cost, it’s a big decision for a company, big or small, to find and implement an ERP. I have numerous conversations with companies that are going through this selection process, and if they don’t bring up the subject of cost in our first conversation, then I do because it is so important! To help you set a realistic budget for your new ERP system, read below for a list of costs you should plan for.

What is an ERP database?

All ERP solutions have a database, which is where all the information is stored. This is important information, like customers, vendors, parts, costs, balances, and so on.

What is a data migration and why is it important?

ERP data migration is a big step in the implementation process that is critical to get right. The ERP system will not function at optimal levels otherwise. Smaller start-up companies typically have less data to convert than larger businesses that have been around for decades, but data migration takes place in all implementations. So, what is it? In simple terms, it is getting the information out of the old system and putting it in the new system.

Setting a baseline for ERP Security

The term ERP security generally refers to two different things. The first is the security at the ERP user level inside the system itself. The second is the security of the ERP data as it relates to external threats (i.e., hackers) that want to access the system. I am going to focus on the second item in this blog.

What is a vision statement?

Most people have heard of a mission statement, but a vision statement is typically less well known. While there is some overlap, there is a distinct difference between the two. To put it simply, a mission statement describes what a company is doing to achieve its goals today, and a vision statement describes what a company wants to achieve in the future.

What is testing and why is it important?

Visual South has implemented countless companies on a new ERP. If we look through the lens of an ERP implementation—meaning a company is leaving a legacy system or systems, and migrating to a completely new ERP—testing is when we make sure we are comfortable with how everything has been set up. Testing in ERP implementation reduces the risk of discovering misalignment or problems AFTER go live. We want to unearth and solve as many problems as possible BEFORE go live. If testing reveals the ERP has been set up correctly, then it will be able to support the new procedures and processes once it is live.

What is a KPI?

A KPI (key performance indicator) is a measurement of value that can be quantitative or qualitative in nature. Manufacturing companies typically use and track KPIs to determine how a particular area of operations is performing. KPIs are ideally presented in dashboard format, giving decision makers the ability to quickly answer the questions like, “How are we are doing?” and “What is causing performance issues?” Think of KPIs as a company or department’s scoreboard for how the team is playing the game.

A big decision

If your company is evaluating ERP solutions, you already know that choosing the right system is a big decision. The evaluation process is not straightforward, or something that companies do on a regular basis. Selecting a new ERP is typically a “once in a (business) lifetime” decision, because if you land on the right solution, your company will extract value from it for decades.