An ERP system in construction is an advanced tool that allows each department to work within its competence making work processes transparent and automated. Construction ERP software development fits both large and small enterprises and allows users to control construction processes in more detail, as well as efficiently save and manage resources.
The Intelvision team has highlighted how technology can help your business in the construction industry, as well as what mistakes you should avoid when implementing a software solution in your company.
What is an ERP System? Â Â Â Â Â Â Â Â
ERP (Enterprise Resource Planning) is a general company’s strategy for the following areas:
• Financial resource management — tax reporting, accounting, budget planning;
• Human resources management;
• Asset Management;
• Partner management;
Transaction/document management.
ERP allows you to automate each of the listed areas, as well as other processes of the company’s activities to bring them into a common interconnected database.
Enterprise Resource Planning Structure
An ERP system consists of the following elements:
• The platform itself. It’s the core environment that ensures the program components’ operation, as well as the basic company’s functionality (reference information, functions).
• Data management tools. They include storage on the server and programs for processing information.
• Plug-ins that distinguish ERP systems from other types of software used in automating business processes.
Instead of several standalone databases with an endless inventory of disconnected spreadsheets, ERP solutions bring order to chaos so that all users. From the CEO to accounts payable clerks can create, store, and use the same data derived through common processes. With a secure and centralized data repository, everyone in the construction company can be confident that data is correct, up-to-date, and complete.
5 Benefits of ERP for Businesses in 2023
If you are just beginning to consider adopting an ERP system, one of your first questions is likely how this software can help your business. We’re here to help by breaking down five main advantages ERP can provide for your business in detail:
1. Data Security. With ERP, all data will be in one place, not spreading across multiple systems with varying levels of security which increases the level of protection.
2. Cost Savings. The ability to monitor the pulse of your organization in one place means you can quickly identify the source of higher expenses, which makes it easier to reduce costs.
3. Organized Workflows. ERP, as a cross-functional link, makes building processes, often disparate from each other, and data that was previously not a systematic set, be integrated into a single complex.
4. Real-time Reporting. An ERP solution can help you to track the performance of different components of the business as well as compare departments to understand what is driving the company forward and what is holding it back.
5. Accurate Forecasting. With ERP software, you can get analytical data for managers on the employees, departments, subcontractors, and the construction site as a whole. The technology uses a wide range of historical data and sometimes other inputs to predict future demand, revenue, expenses, and more. Forecasts are much more accurate once you are running an ERP system.
When Do You (Especially) Need ERP Software?
Here are three cases when you should consider adopting technology in the race to dominate the construction market:
• You spend a lot of time on routine operations. Without industry-specific services, employees are busy with routine tasks and lengthy document preparations. As a result, the company is making less profit.
• You and your team often make a false move. With top-notch ERP software in the construction business, processes become much more predictable and manageable.
• You want to keep all the data in one place. Does your company use a lot of software? Data from all services must be efficiently imported and synchronized with each other.
Core Mistakes in Building an Enterprise Resource Planning System You Must Avoid
The wrong selection of the ERP system will not only entail additional costs but may also adversely affect the company’s operations. To avoid mistakes, you need to know the main ones.
The lack of a clear goal
ERP should improve the work of the company, adopting the positive aspects and compensating for the negative ones. Therefore, it is necessary to determine exactly what effect from its implementation should be obtained.
Wrong selection of methodology
Each ERP system is built for a specific area of business. It can be adapted for the manufacturing sector or trade.
Wrong choice of the developer/software vendor
Many companies turn to software development companies with narrow experience or use free ERP systems to reduce costs. This leads to low-quality software and important information leakage.
Interface complexity
If the program is too complex to understand intuitively, you may face the problem of having to train your staff on how to use it. It also increases the risk of errors when entering data, which entails incorrect planning.
Moving to an ERP system or upgrading your existing system is a large project, but the advantages this system presents make it well worth the effort. It is time to start looking at ERP solutions and planning for an implementation!
