- What is ERP?
- What are the differences between ERP and accounting software?
- What are the advantages of an ERP implementation?
- What is the cost of an ERP system and what does it depend on?
- What is the cost of the implementation?
- Can I receive funding for the purchase and implementation of ERP?
- How long does it take to implement an ERP system?
- What else should we know about the implementation?
- If it turns out that the implementation of one module is finished faster, what happens to the unused time?
- What risks and difficulties may arise during and after the implementation of an ERP system?
- Is there a risk of failure with the implementation and installation of an ERP system?
- What does “Remote support” and “On-site support” mean?
- If we choose not to use the subscription, how can we manage updates or problems with the system?
- What are the costs for support and upgrade of the ERP system?
- What makes EnterpriseOne the right product for us?
- What editions of EnterpriseOne are there and what are the differences between them?
- How can I be sure that my data will be securely protected?
- What will be the return of my investment?
- What if I have bought one edition and I have reached the maximum number of workplaces or companies?
- We would like to know the exact version of Microsoft SQL Server 2008 that we need and we want an offer for it (if you do not sell it, then at least indicative)
- How can I get more information about the product, implementation, support and anything else of interest?
What is ERP?
ERP (Enterprise Resource Planning) system is an integrated software application designed to provide information for planning, control and analysis of all processes in an enterprise.
What are the differences between ERP and accounting software?
Systems known as “accounting software” have no management functions – they handle the tax records of the company. All external parties to whom the company must send reports – such as the state, shareholders, etc. are also associated with tax records. Systems of this kind may also include a “warehouse” module with the main purpose to give account for the tax representation of the businesses. Because of this specific purpose the “warehouse” module is often not functional enough to be used in the company operations.
It is important to note one characteristic of the accounting software. Because of its focus on the accounting records of the company, and working without integration in a single corporate system, it turns out that they often work in such a way that the accounting documents come first and the primary documents come second. This work model is very suitable for an isolated accounting department, or an external accounting company. In this case, to issue an invoice you have to account it first and then call the function “Print this article as Invoice”.
Note: With integrated systems and ERP systems, the process is exactly the opposite – first you create the primary documents and the accounting is a follow-up, which at first may startle the accountants who are used to work by the accounting model.Working with accounting software requires the services of qualified accountants to create even the most basic invoices. This is not a problem in an isolated accounting department, but becomes a serious obstacle when you try to implement the system in the other departments. This is natural, since a salesman for example is not willing to enter accountings to make a sale. Because of this characteristic, it is extremely difficult to expand accounting software to an integrated system used by all the departments of the company.
What are the advantages of an ERP implementation?
The ten most important advantages of the implementation of an ERP system
Analysis of Accenture
To assess the impact and return of investment in business management systems, Accenture conducted a survey among 163 organizations, which are using such systems, and 28 of the leaders in implementing business management systems.
According to the survey the ten most pursued advantages are:
The realized advantages are as follows:
- Reduction of errors by 75%
- Reducing the time and costs coming from entering the information from one company system to another by 75%
- 75% reduction of errors associated with the BOM (Bills of Materials), since these documents are created only once and are managed by the ERP system
- Optimization of the inventory and stocks by 15%
- Optimization of waste material, which can be used in production by 8%
Another advantage is borrowing “know-how” – ERP systems are designed after the international standards for business processes and the company begins working according to them. Planning and organizing orders and deliveries lead to at least 15%-20% reduction of stocks, which releases financial resources for the company. These systems make it possible to create different analysis and facilitate quick and adequate response to the changes in market environment, which reduces expenses by about 10% and increases revenues by the same. The collection rate is increased by 15% due to the ability to more effectively monitor all orders, payments, invoices and overdues. The number of the required personnel is reduced due to the shorter processing time of documents and thus salaries and wages are reduced by up to 10%.All these advantages contribute to a major business process optimization, which significantly affects the returns of assets, equity, liquidity ratios and mostly profitability ratios, significantly increasing profits.
What is the cost of an ERP system and what does it depend on?
The cost of an ERP system depends on too many factors and it is difficult to give a specific number. It depends on: the number of licenses to be purchased, the type of distribution of the software, the functionality – how many and which business processes will be covered by the system, the size of company, etc. The price range in which ERP systems typically fall is from 5 000 USD to 5 000 000 USD.
The EnterpriseOne edition designed for small and medium-sized businesses – “Small Business Edition” costs between 4 500 EUR (for 6 workplaces, client subsystem) and around 25 000 EUR (for 25 workplaces, client subsystems, logistics, manufacture and finances). Even if these are relatively low prices for an ERP system, it can be hard for a smaller company to pay them. That is why we offer the opportunity for deferred payment of the product with interest-free lease, as the amount may defer up to 2 years. In addition, ERP Bulgaria introduced as an integral part of all contracts with their clients a clause to pay back their money if they are not satisfied with the work of the ERP solution. With this option, which is unique for our country, ERP Bulgaria wants to ensure their customers that the implementation of EnterpriseOne will increase their competitiveness without taking any financial risk.
What is the cost of the implementation?
Many companies offering ERP systems do not provide sufficient advance information about the implementation. It is quite difficult and complicated process. The price is a complex concept and it is hard to be determined in advance. You have to know that a successful implementation will cost you money, but the benefits are significantly greater than the price. An ERP system is required to win you the business race with your competitors.
While the software license cost is determined by the needed functionality and number of workplaces, the cost of the implementation depends on the amount and the types of the customizations to be made. Users can rarely give precise specification of the necessary customizations in advance and therefore the exact cost of the implementation is often not predeterminable.
Based on the previous experience and the expectations according to preliminary conversations and analysis, ERP Bulgaria always gives reasonable assumption for the expected cost of implementation. Eventually only the actual consumption of consultant services is paid. This means that the cost of implementation is controlled by the client.
As a whole, it can be expected that the cost of the implementation will be roughly between 0.5 and 2.0 times the price of the basic license.
Can I receive funding for the purchase and implementation of ERP?Yes, it is quite possible. Each funding program, however, has its specifications. ERP Bulgaria can assist the process in the role of a vendor with the preparation of indicative offers, final offers and tenders participation. However, to lead the application to a successful end, we recommend the use of a specialized consulting company for this kind of projects.
How long does it take to implement an ERP system?
The implementation is divided into “implementational packages”. These packages roughly correspond to the modules of the system, but are rather focused on the ways of using the system. All of the implementational packages include a certain number of hours for implementation. If the hours are not fully used, they can be transferred to other activities. If the hours are exceeded, additional cost per hour is charged, according to the pricelist for support.
All implementational packages include:
- Needs Analysis
- Re-engineering of the processes and proposals for changes, according to best practices
- Development of specific add-ons to the software
- Preparation of the original nomenclatures, including import from another system
- Preparation of the business model – transformation of documents, user roles, report templates, model for data protection, etc.
- Initial test input data, together with the project manager
- User training
- Final analysis for completeness, together with the project manager and line managers
- Go-live of the system
The implementation time is relative and varies from several months for smaller enterprises, to several years for large companies with complex business model.
What else should we know about the implementation?
The proper implementation of a full-functional ERP solution is an extremely serious task. Any ERP implementation is unique and is consistent with the specifics of the company. The implementation pricelist describes the standard services, which ERP Bulgaria is doing during the implementation of the ERP system EnterpriseOne. Because each implementation is different, it is possible to order unlimited additional services, which are paid by the hour.To make a successful implementation, it is required for the client to form an implementation team (in small companies – only a leader). This internal team actually makes the implementation of the system and changes the habits of the users. The team of ERP Bulgaria is doing consulting and is able to adjust the software and do trainings, but does not make the actual change in the activities of the end users. The internal team should have a leader with the power to deploy the taken implementation decisions, to ensure the needed access, and to be directly related to the management of the company for faster decision making on issues of work changes. The team leader should be able to devote a considerable part of his time to the implementation.
If it turns out that the implementation of one module is finished faster, what happens to the unused time?Unused hours are still available and can be used later for maintenance. Furthermore, hours for the implementation of one module can easily be transferred to other modules.
What risks and difficulties may arise during and after the implementation of an ERP system?The ERP system implementation often takes a long time, since it requires both serious clarification of the business models and the full specification of the information flows. Because of these requirements, the implementation of such a system has beneficial effects on the organization as a whole. But here lies one of the biggest problems with the implementation – often managers in different units cannot properly value the need for such a system and are not prepared to perceive this level of complete integration of company data. It is better if before the implementation of an ERP system managers of all units undergo training that will give them much more accurate picture of the benefits, what they should and what they should not expect of such a system.It should be noted that all ERP systems have a common ideology. This ideology is a specific methodology of work (of course, allowing customizations), which was initially defined in the 60’s. Of course, with time passing the methodology has developed, but despite the emerging branches, we can still say that all ERP systems have a common central methodology. This is extremely important for the process of preparing personnel for servicing similar systems – there are many courses that are not directly related to a specific ERP system, and apply to all such.
Is there a risk of failure with the implementation and installation of an ERP system?As with any business endeavor, there is a risk. It is possible that the implementation will not proceed as planned. However, this risk can be minimized. ERP Bulgaria has highly qualified professionals with years of experience in the implementation and configuration of ERP systems. Our partnership with worldwide leaders in their industries have allowed our company to gain know-how in many of the most dynamic and important economic sectors. Today ERP Bulgaria has specific expertise and over 150 completed projects in the following branches: food industry, textile, printing industry, hardware industry, construction and building materials, trade, transport services and advertising. On the other hand, the successful implementation depends on the willingness of our clients to give us the necessary support and assistance in setting up the business processes and to devote the necessary time and resources. The implementation does not depend solely and entirely on us and its success is a function of the efforts of both sides. The client should approach the implementation with the necessary preparation. With the synchronized work of our experts and analysts and of our client’s team, the risk of failure is minimal.
What does “Remote support” and “On-site support” mean?
According to the subscription plan, you are entitled to a fixed time free support per month.
Support can be two types:
- Remote Support
- On-Site Support
Remote support includes support by phone or over the Internet, through direct access to your computers, while with on-site support we send our specialist, who takes up the case. After the use of the specified in the subscription plan time, support is paid according to our rates.
Note: If you have unused hours of implementation, you can use them as support hours.
If we choose not to use the subscription, how can we manage updates or problems with the system?We update EnterpriseOne every three months. Without a subscription agreement, you will lose the right to receive new versions. If at any time you decide to update the version, you will have to pay for every update to that moment. If the cost for these updates is more than 40% of the software (without implementation), you will pay only the 40%.
The price per hour for support without a contract is higher. Moreover, in the absence of an agreement there are no obligations regarding the reaction time.
What are the costs for support and upgrade of the ERP system?Consulting and support of the ERP system are additional costs that must be taken into account. They represent 10% to 20% per year of the total cost for purchase and implementation of the ERP system,depending on the company size, the number of workplaces, the types of services, etc. ERP Bulgaria offers favorable conditions for support and upgrade, and you can choose from several different packages for subscription services.
What makes EnterpriseOne the right product for us?EnterpriseOne is an extremely powerful tool for management, tuning and optimization of the business processes in your company. However, it is designed to be as easy and convenient to use. The software covers all processes in an enterprise: manufacture, distribution, customers and suppliers relationship, finances, accounting and others. With the introduction of such a system, your company will receive a major boost to both improving the control and organization and improving the quality of your production. Not only can you track with ease how your company did back in the time, but also make forecasts for future periods to spot problems in germ and take adequate measures to solve them before causing damages. With our software you will be able to react quickly, efficiently and easily to changes in the dynamic market environment. EnterpriseOne is extremely flexible and easy to automate various processes, to adjust the document model, to produce reports with various dimensions, to work with different clients and suppliers under different conditions for each of them. Your company will grow with ease, without adding to the work and the processes in it. We, the team of ERP Bulgaria, are constantly working to improve and develop our product so that it reflects any changes in accounting standards and legislation in Bulgaria. Upgrading the server database and client part is fully automatic, without interrupting and aggravating the work process. The software is also fully prepared to work over the Internet by exchanging very small amount of data, which can be compressed. We offer favorable conditions for deferred payment. We give you the right to “test” the product, and you can refuse it if you don’t like it.
What editions of EnterpriseOne are there and what are the differences between them?EnterpriseOne is offered in four editions:
- EnterpriseOne Mini Edition – 1-10 workplaces, maximum one company
- EnterpriseOne Small Business Edition – 6-25 workplaces, maximum 3 companies
- EnterpriseOne Standard Edition – 10-80 workplaces, maximum 5 companies
- EnterpriseOne Corporate Edition – 20+ workplaces, unlimited companies
All editions have the same functionality. The difference between them is the number of workplaces that each of them supports. The number of workplaces shows how many users can work with the system simultaneously. For example, if 10 people have username and password for authentication to the software, but you have purchased 5 workplaces, only 5 of the people will be able to use it at the same time. For each edition there is a minimum and a maximum number of workplaces supported.
How can I be sure that my data will be securely protected?
Data is stored on a local server and its security depends more on you. Before you perform any operation with it, it is best first to make a copy.
EnterpriseOne allows restricting access of individual users, so each department in your company has access to only the necessary components and its functions. Each user has a password to identify himself, and it is encrypted on the server and so it is virtually impossible to be defeated. For greater convenience, entire groups of users can be created.
To increase even more the security we recommend the following measures:
– Use passwords that contain more than 6 characters. Passwords are more secure if besides letters, there are also numbers, punctuation marks and other symbols
– Passwords must be known only by authorized for access people
– It is not recommended to connect the server directly to the Internet – it should be done through VPN
– Use a Firewall to protect your network
– Frequently backup of your data, especially before harsh changes in the way of work, reset, etc.
What will be the return of my investment?
We dare to say that the implementation of an ERP system is highly profitable investment for the company. Theoretically higher profitability hides greater risk. However, this is not always the case and happens only under ideal market conditions. The market for systems of this type is not yet sufficiently developed and the relatively small percentage of small and medium sized companies in Bulgaria allocates resources for such software. The implementation of an ERP system can provide significant competitive advantage to your organization.
For example, 60%-75% of the costs of contemporary manufacturing companies go for inventory. This way, effective management of inventory may be critical to the success of the enterprise.
It is proved that the ERP system optimizes inventory by 15%-25%. As shown in the following example, a 15% optimization of stocks can lead to 180% increase in profits.
Company before ERP implementation Company after ERP implementation Finished product price 1000 Finished product price 1000 Inventory costs 600 Inventory costs 510 (15% less) Labour costs 125 Labour costs 125 Other expenses 225 Other expenses 225 Total costs 950 Total costs 870 Profits 50 Profits 140 Profits increase % — Profits increase % 180%
By such accounts (depending on the specifics of the company) it can be easily calculated that for companies above certain size, an ERP system will bring more benefits than its cost, which makes it a good investment. The same shows the following study:
Peerstone Research – Study on ROI in ERP systems
The survey was conducted among over 200 companies using ERP software.
– 63% of the largest users of ERP systems have experienced significant benefits in any form
– 39% of the companies had a direct financial effect of the implementation of an ERP system
– 47% of manufacturing companies had a direct positive effect on cash from the implementation of an ERP system
For most users the main objectives for introducing the ERP system are non-financial. Most often referred to as main objective is management visibility into operations (71%). Objectives with the most minor importance are reducing the number of employees (22%) and radical reorganization of business processes.
What if I have bought one edition and I have reached the maximum number of workplaces or companies?Upon reaching the limit for workplaces or companies in a given edition and you need more, you will need to pass to the next edition of EnterpriseOne. The upgrade process is quick and easy (without much problems for the company), with paying the difference in the price between the lower and the upper version of EnterpriseOne. The amount can be deferred for 12 months in order to reduce the financial stroke for the company because to add even one workplace, the edition has to be replaced with the next one. The additional workplaces are purchased separately.
We would like to know the exact version of Microsoft SQL Server 2008 that we need and we want an offer for it (if you do not sell it, then at least indicative)
ERP Bulgaria does not sell software from Microsoft. The price of Microsoft SQL Server may be different for different distributors. Indicative prices can be found on the Microsoft website:
These are only indicative prices, actual may vary. According to Microsoft’s policy you have to buy either a “processor license” or CALs for each device or user that work with the server. Processor license allows unlimited number of users.
For more information about the version of MS SQL Server required for each edition of EnterpriseOne, please contact us on firstname.lastname@example.org.
How can I get more information about the product, implementation, support and anything else of interest?Our staff will gladly assist you, so do not hesitate to contact us with any question. And if you need more detailed explanations, you can meet with our specialists at your most convenient time.