Blog Archive

ERP and CRM – an ideal match?

ERP and CRM systems are among the most widely used business solutions today. Their popularity is growing, and not just among large enterprises. Used correctly, they can help you and your employees simplify your daily work and make business processes more efficient. This is important because competition is becoming increasingly fierce. Not surprisingly, every company wants to look their best and be a step ahead of the competition. Once you win a new customer, you want to keep them and not lose them to the competition. If you know what your customers want, understand their needs and can respond to them individually, you have a good chance of winning the game and staying in the fast lane. But what does it take to win a customer over for the long haul?

What is a CRM system?

CRM stands for Customer Relationship Management. Essentially, CRM software provides a standardized and organized platform for managing your customers’ and prospects’ information. All the information you have about a customer is organized in one place. You can view and organize it at a glance. All interactions can be easily documented and analyzed.

The benefits at a glance

CRM software is often used when it is particularly important for a company to maintain and strengthen its relationship with its customers. All information related to a customer is displayed in a clear history.

Contact management

Every phone call, document, note, and other correspondence, as well as information about past conversations, negotiations, agreements, and long-term developments, is recorded in the software. For scheduled meetings, for example, you can create a calendar entry or view past and upcoming appointments. Orders, complaints or change requests are also stored in the software. All data is summarized in a structured user interface and can be tracked by the entire team. As a result, every employee can respond to customer inquiries competently and well-prepared, whether or not they are the actual contact person.

Enterprise collaboration across teams

With a CRM system, you can work in a more progressive, modern and effective way. Because data is stored in a central database, every employee, regardless of department, always has the most up-to-date information. When customers have problems or complaints, it is easier to deal with them because they do not have to go from department to department explaining their concerns over and over again. This is a very positive experience for the customer, which can trickle down to potential customers. Ultimately, this is how you build a good reputation, especially as a small business. The CRM system has a number of advantages, especially for internal collaboration within the company. For example, the software always knows what sales phase you are in.

Thanks to a clear sales pipeline, you can see at a glance which tasks require your immediate attention and which can be dealt with later. Reports on sales figures can also be used to improve sales strategy. For example, by analyzing all interactions with a customer, sales reps can determine the best time to contact the customer about a new product. It is also possible to develop targeted marketing strategies. For example, the customer base can be divided into different segments, such as by location or sales stage. You can then send individual messages to each segment. Project management also benefits, as structured and synchronized data allows project managers to better track processes. The CRM system also provides information on company performance. It provides real-time data, reports, graphical dashboards, and productivity metrics.

Customer satisfaction improvement

Regardless of your business or industry, whether you are a sole proprietor, a big or a small business, a CRM system will help you stay in touch with your customers, improve and positively influence your customer relationship, and build long-term customer loyalty. Customers expect more than a quality product or service. They want to feel understood. Knowing your customers’ needs will help you meet them better. Building good relationships and following up with prospects and customers is critical to winning and retaining customers. Customers who remain loyal to your company increase your revenue.

ERP and CRM system – what’s the difference?

The two systems are very similar in many ways. However, they do differ in important details, which is why they are not directly comparable. First and foremost, both systems are designed to make your day-to-day work easier. The big difference, however, is where they are used and in what areas of the business they are used. With the ERP (Enterprise Resource Planning) system, the focus is clearly on business processes and the workflow that takes place behind the scenes. It is all about structuring and streamlining workflows and efficiently handling operational processes in the background. CRM software, on the other hand, focuses on the customer and the relationship with the customer. Increasing customer satisfaction and retaining customers over the long term, as well as managing and maintaining the customer base, play a key role. The goal is to reduce operating costs and increase revenue over the long term.

ERP or CRM – which is the better choice?

To answer this question, you should first consider what is most important to you in your day-to-day operations and what your long-term goals are. An ERP system is often used in industrial companies that manufacture products and want to increase productivity and track, control, and improve internal processes. CRM systems are mainly used when customer relations and new customer acquisition are a priority for the company. You can also maintain customer information in an ERP system. ERP solutions often include CRM functionality, but lack advanced features such as analytics, reporting, or customizable cockpits.

If you are not sure which system is the best solution for you, ask yourself if you and your employees are satisfied with the functionality of most business solutions. If so, CRM software is probably good enough for you. If not, a more comprehensive ERP system may be a better choice for you. It is also possible to combine the two systems. Linking the ERP and CRM systems can bring you many benefits, and CRM software can be easily integrated with most modern ERP systems.

Benefits of linking ERP and CRM

Linking ERP and CRM software has many benefits. Perhaps the most important is a single database for the entire company. All relevant data is available to all employees in the most up-to-date form. This allows you to respond quickly to customer requests because all important data is readily available. This increases customer satisfaction. You have a clear customer base, an overview of all previous orders, current orders and delivery times, as well as insight into outstanding payments or reminders. With information about customer ordering habits and preferences, you can develop targeted marketing strategies. It is also possible to flag key customers in the system and give them preferential treatment, for example, in terms of service and order processing.

Are ERP and CRM software a good combination, then?

The ERP system and the CRM software can be linked via an interface. It is important that the two systems are well coordinated. If they are not, you are wasting valuable potential. Here is an example to illustrate this: Suppose one of your customers wants to change a previously placed order. The data from the conversation is recorded in the CRM system. Running them in parallel without integration would result in each system having a different level of information. Employees working with the ERP system would not have the changed order. As a result, data would have to be entered and reconciled multiple times. This creates a lot of extra work, and errors can easily creep in. In the worst case, this can lead to misunderstandings with the customer.

Conclusion

Unfortunately, there is no one-size-fits-all advice on which system is right, or whether a combination of the two makes sense for your organization. You have to decide for yourself which of the many options on the market is best for you and your employees. This requires patience and a sense of your company’s needs.

If you would like to learn more about linking ERP and CRM systems or about the full range of TimeLine ERP functions, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We will be happy to advise you!

22. April 2024

Achieve the highest level of customer loyalty with CRM

Blog

Depending on the industry, the number of returning customers can quickly reach 80 percent or more – provided you use the support of a good CRM system. With increased transparency, price-driven customers are quick to place single orders. But with a good CRM system, you can call them back at the right time, improve interaction and communication – and build a strong and loyal relationship. In this article, we will show you how you can effectively increase customer loyalty with TimeLine ERP.

All the information you need at your fingertips

As soon as a call comes in, TimeLine ERP compares the phone number with existing contacts for all business partners. A pop-up window immediately opens, allowing you to jump to the business partner’s information. In addition to the open items, you can view all related call histories and documents for customers, prospects and suppliers to help you communicate.

Eine neue Aktivität in der CRM-Software erfassen

Berichtet der Geschäftspartner etwas Neues, zum Beispiel wann welches Produkt wieder interessant für ihn oder sie wird? Oder erwähnt der Ansprechpartner vielleicht, dass er demnächst auf der Messe ist, die ihr bereits seit Monaten plant? All diese Informationen sind wertvoll und sollten als Aktivitäten eingetragen werden. Bei jeder Aktivität können Dokumente hinterlegt werden, sowie ein Bearbeiter, ein Ansprechpartner und ein Wiedervorlagedatum. Zeitgleich kann ein Geschäftspartner einem Verteiler zugeordnet werden, dessen Definition euch selbst überlassen ist.

Create a new activity in the CRM software

Does the business partner report something new, such as when a product will be of interest again? Or perhaps they mention that they will soon be attending the trade show you have been planning for months? Information is key, so every lead should be tracked as an activity. For each activity, you can store documents, an editor, a contact person, and a follow-up date. At the same time, a business partner can be assigned to a distribution list that you define.

Automatic Reminder

Activities that involve resubmission appear in your existing calendar. This means that no follow-up is forgotten and the customer, prospect or supplier receives a reminder – or perhaps even an offer – in time. The telephone link from the business partner information can be used again for this purpose. Just double-click on the contact’s phone number to initiate a call. At the same time, quotes or even orders can be created directly from the module. In the cockpit you will find all follow-ups, calendar entries and to-dos in a single module. This is clearly displayed as a list and you can react to actions at any time.

Mail merge in CRM

Once customers have been assigned to appropriate distribution lists, a serial mailing could be a good strategy. Especially for industry-specific mailings or personalized company newsletters, it makes perfect sense for customer loyalty and can be easily accomplished with a CRM. Use integrated campaigns that can be limited to a specific postal code, business partner or mailing list, to strengthen customer retention in a targeted manner.

Location-independent and mobile

Access to customer data is essential for management, field service, and sales, regardless of location. In most cases, however, not only the most important sales figures are required, but also internal documents, drawings or emails. This is where the integrated document management system comes to the aid of the CRM – and also makes all documents available in our iPad and iPhone apps. This data can also be managed completely offline. To do this, the desired customer data only needs to be made available offline once in advance. Any changes made to the customer, supplier or prospect can then be synchronized back at any time. This makes it possible to work at locations without Internet access!

Want to maximize customer loyalty with CRM?

Would you like more integration options, ways to increase customer retention, or are you missing features? Let us know by leaving a comment! All features have been developed in cooperation with our customers, from the field, for the field. For better customer satisfaction – and better success for your business.

Want to learn more about CRM or the full range of TimeLine ERP features? Send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you!

22. April 2024

ERP Systems: Meaning and Functionality

Blog

The somewhat different attempt to explain an ERP system

It is said that a good professor can explain the basics of theoretical physics on a beer mat. We look at a similar example, but replace the physics with an ERP system and the beer mat with a supermarket store. This blog post plays the role of the professor. We will take you on a journey through the vastness of the supermarket shelves and begin a slightly different kind of explanation.

At the beginning of any attempt at explanation is a curious person. If you are a die-hard connoisseur of ERP software, an ERP sommelier so to speak, you can skip this blog post and move on to the next entry – or you can stay and get your daily dose of confirmation. This blog post is for those for whom ERP is (still) a green field.

Stepping Through the Sliding Glass Door

Getting started with an ERP program should be as easy as going to the supermarket, but you shouldn’t rush into it. In our example, this can be easily explained with the equation

The decision for or against should therefore be well considered and not rushed, otherwise it will crash. To help you decide, we don’t send out food or fragrance samples, but we do offer a free demo download.

The Sales Floor

Imagine your company as a sales floor in a supermarket with many products. The ERP system represents the shelves and allows you to store your products in a traceable and organized way. Is there not enough jam on the shelf? Is the rigatoni out of stock again? The ERP system provides you with information at an early stage and allows you to plan the organization of your articles. Whether with serial or batch numbers, First In – First Out (FiFo) or Last In – First Out (LiFo), the ERP system is not only a genius but also a master of chaos. For the particularly curious, here is a short additional detour on inventory management.

At the meat counter

Cordon Bleu is on your shopping list. As you know, it is French and means “blue ribbon”. Sounds impressive, but what about its ingredients? This is where we build the bridge to the production planning processes within an ERP system.

Goods are processed, refined and, if necessary, assembled from different components. This is also the case with our cordon bleu. To continue our metaphor, the ERP system provides the platform for managing and controlling all production processes. It shows me the ratio of ham, cheese and schnitzel, and gives me the breading directly in the bill of materials. Thanks to production planning, it is possible to transparently control and track what (Cordon Bleu) is, has been or has to be produced, where (at meat counter 2) and by whom (butcher Smith). Still have questions about the digital meat counter? Read more about production planning and ist applications.

Behind the scenes

Supermarkets generally operate on a “FeFo” (First Expired – First Out) basis, meaning that products are sorted by perishability. ERP systems offer the possibility to organize the storage according to personal taste – including the inventory of the storage contents.

The procurement of new items is constantly monitored so that you are not left out in the cold. Whether jam or rigatoni, material requirements planning (MRP) makes it easy to determine purchasing and/or production requirements for minimum inventory levels, customer orders, and batch sizes agreed upon with suppliers in the ERP system. This means that the warehouse is only filled with what is actually needed.

Back to the meat counter. Butcher Smith wants to take a vacation during the European Championship. To ensure that he does not have to stand at an unmanned counter, the ERP system has a personnel planning function (PEP). Holidays, illness, shift work – PEP ensures that everything runs smoothly. So that barbecuing with friends is saved.

Final spurt at the checkout

The cash register represents sales within an ERP system. Quotations, orders, delivery notes, invoices or credit notes – an ERP system provides comprehensive support for the daily sales processes. Open items and their settlement by the customer’s payment can be accessed at any time.

Did you know that the receipt is both an invoice and a delivery note? This is called direct invoicing. This saves time and money, but it does not prevent you from regularly fishing your predecessor’s receipt out of your shopping cart. To make sure you don’t lose track of your own receipts, you could use a budget book at home. The digital document management system (DMS) in the ERP system ist he solution. A quick scan and you have all relevant documents at your fingertips – ordering can be that easy.

Want to know more about ERP systems, their meaning or special features?

The purchase is paid for, your head is full, and you slowly realize that this blog post would hardly have fit on a beer mat. The exit comes just in time! If all went well, you are no longer standing on a greenfield site and know everything about ERP systems, their meaning and functionality.

If you would like to learn more about ERP or the full range of TimeLine ERP functions and how implementing different modules can improve the efficiency of your business, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

ERP for small companies – how to get rid of stand alone solutions

Blog

Nowadays, almost all large companies use ERP software with integrated ERP functions. ERP for small companies or SMEs, on the other hand, are not yet as established. Instead, many different programs are used to organize processes and day-to-day-business. We are talking about so-called stand alone solutions. You may be familiar with this: you use Word to write quotations, external tools as “vacation planners” and carry out calculations in Excel or Project – which involves a lot of manual effort. Such stand-alone-solutions are often an integral part of a company’s IT landscape and are generally sufficient in the beginning. Finally, many of these programs are available free of charge and are easy to use. However, as the size of the company increases, other factors come to the fore that can no longer be served by such a software mix.

ERP for small companies: Handle business processes more efficiently

Complete ERP solutions are indispensable and much needed these days. Business processes are optimized, organizational workflows and structures improved and adapted to corporate and market changes ever faster. More and more companies are relying on this and striving for a standardized, economical and, above all, more efficient IT infrastructure. The use of business software also offers a whole range of advantages for medium-sized companies and their projects. Modules such as merchandise management, accounting, document management and other business processes are not only mapped in a single system, but also offer integrated ERP functions without additional interfaces.

ERP solution instead of stand alone solutions: an overview of the range of functions

An ERP system normally maps the following functions of a company:

procurement
production
materials management
customer relationship management (CRM)
human resources
finance and accounting
controlling

A major advantage: all processes, machines and programs are connected via a common database and communicate with each other. Communication and control are made possible at all levels of the company.

Without interfaces, data loss and duplication of maintenance: ERP for small companies

In practice an ERP system for small companies reduces your IT costs because only one software is used instead of various different programs. Above all, however, an ERP solution is easy on your employees’ nerves and makes collaboration much more efficient. Everyone involved has access to the data – regardless of department or location. The data only has to be entered once and is always up to date. The information flow of a business process is therefore significantly optimized. Nothing is lost, nothing is forgotten – a smooth operational process is guaranteed. The same advantages apply to working with data backup, updating and maintenance.

One tailor-made business software, one license model, one maintenance process

Especially as a small business, you should not spend your manpower and capacities on the constant maintenance of various programs. If you opt for ERP for small businesses, implementation and maintenance are reduced to one central solution – instead of a lot of stand alone solutions. Time and costs will be greatly reduced for you. Thanks to regular updates, you always work with the latest version of the ERP software and automatically benefit from new ERP functions. Last but not least, an ERP system for small companies offers you a tailor-made solution for your company size that can be continuously adapted to your growth and needs.

The right time to get rid of stand alone solutions

You should consider implementing an ERP solution in your company right from the start. Although most processes are still manageable in the initial phase, they become more complex as they grow and then require more and more effort. Our recommendation: run your data in a central system with ERP functions at an early stage in order to maintain an overview and control right from the start. ERP for small companies is worthwhile from just two PC workstations. Start with master data maintenance at an early stage and create a good basis for your company’s growth.

Put an end to stand alone solutions – get started now with ERP for small businesses!

Would you like to find out more about stand-alone solutions or the full range of TimeLine ERP functions to better help your clients? Then send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

ERP application in daily business – an ERP system example

Blog

ERP systems date back to the 1970s. Initially, they were used only by large industrial companies for business processes. It was a standardized inventory management system for planning purchasing and production. This ensured that products were completed on time. Since then, ERP applications have changed and improved dramatically. However, many small and midsize businesses wonder why they should use an ERP system. But the question should no longer be “why” do you need an ERP system, but “which ERP system is right for you?

Your business is growing and things are changing. There are new challenges: Tasks are becoming more complex and departments are growing. In the course of significant growth, it is often necessary to reorganize your own structures and processes. More and more companies are already benefiting from the use of ERP solutions. Especially with limited resources, you can benefit from easy data maintenance and react quickly to market demands.

ERP applications pay off

If you want to stay on top of things, an ERP (Enterprise Resource Planning) system is the key. Today, a company can use a single ERP system to cover all areas of its business, from supply chain management, to manufacturing to day-to-day operations to accounting. This makes it possible to monitor, plan and control processes faster and more effectively. They are constantly being modernized and developed. Processes that used to be done manually are automated by an ERP system. But what is behind the use of ERP? Many companies wonder if it is worth buying and implementing an ERP system. Why is that? Because of the high license costs. However, a small amount of time saved can result in a large amount of money saved, as the following example of an ERP system shows.

Ms. Jones is an employee of your company. Ms. Jones spends two hours a day placing and tracking orders. She creates the order in a Word file, prints it, and faxes it. She then checks to see if the order has been received. Each order takes about ten minutes of her time. This means that Ms. Jones sends out twelve orders in two hours. The average salary of an administrative assistant is between 1,959 and 2,645 euros per month*. Let’s assume an average of 2,302 Euros per month and a working week of 40 hours. This means that Mrs. Jones has an hourly wage of 13.28 Euros**. Mrs. Jones spends two hours working to place the orders. If you multiply this by her hourly wage, your company incurs a cost of 5,312 Euros for 200 working days.

Why is using an ERP system useful?

For example, you decide to implement an ERP system in your company. After a short time, the ERP applications begin to pay off. With TimeLine Neo, you pay a one-time license fee of 1,490 euros per PC workstation. You have access to the full range of functions from the first workstation. Maintenance is optional and costs 20 percent of the license fee per year, or $298. Training for the program usually takes one working day for all employees. A fee of 800 euros is charged for eight hours. The price is significantly reduced for group training or multiple licenses. The cost of the license together with the maintenance and training fees is $2,588 for the first year. In the second year, only the maintenance fees are due.

With TimeLine Neo, Ms. Jones can create an order in about two minutes and send it by e-mail. For example, she can use a screen to see which orders are still open. She no longer needs two hours to complete twelve orders, but only half an hour. Calculated over 200 working days, her annual expenditure is reduced from €5,312 to €1,328. With access to the ERP system, Ms. Jones is able to focus on her core business.

After five years with an ERP system, your company has saved 16,140 euros. The purchase paid for itself in the first year. The administrative workload is reduced and you save space on shelves and office supplies – electronic document storage is also integrated. Saving time is also a competitive advantage for your business. If you are faster and more flexible, you will overtake slower competitors.

Additional benefits of ERP applications

This example of an ERP system is just one of the many benefits of ERP software. The same can be done for estimating or production, for example. Why is that? Many companies still organize their production on paper or analyze important data using only programs such as Excel. You have to make important – and financially significant – decisions based on instinct when it takes a long time to compile important data, such as incoming and outgoing orders, inventory levels, or order margins. Without real-time process data, you won’t know how your business is performing until the annual report is published.

Still unsure and want to try it first?

Try TimeLine ERP for 90 days free of charge and without obligation, simply download our demo version. The data entered in the trial version can be seamlessly transferred to your system after a purchase decision. Do you still have questions? Or would you like to find out more about the full range of TimeLine ERP functions and what they have to offer for your project or your industry? Then send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

ERP developments enable new production technologies

Blog

The roots of Enterprise Resource Planning (ERP) go back several decades. In the 1970s, the first versions helped large companies with material requirements planning. Material Requirements Planning (MRP) is the forerunner of today’s modern ERP systems. In the 1980s, systems began to add production planning and control capabilities. As a result, their use was no longer limited to the industrial sector. It was not until around 2000 that the ERP system we know today was created. Sales, accounting and human resources modules are integrated. The term “ERP” was coined by Gartner, the well-known provider of market research and analysis. But what ERP developments can we expect in the near future?

Although there are still companies that use many different applications – so-called isolated solutions – according to a Bitkom survey, one in three German companies uses ERP software. Another 21% are even planning to introduce it. Today, ERP systems are true everyday heroes, whether in small or large companies. As the backbone of information technology, they have become indispensable in many companies. Consisting of various modules linked by a common database, they enable better collaboration. ERP provides visibility, handles routine tasks, and optimizes operational processes. Real-time information allows better decisions to be made and customer needs to be met.

ERP developments in the coming years

The development of new ERP software is both more feared and more necessary than ever. On the one hand, intervening in a complex system is always risky. On the other hand, evolution is important because business processes change over time. To remain useful, ERP must be able to keep pace with these changes. The market and needs change quickly, so staying current is not easy. Here are the top ERP developments.

Industry 4.0 and the Internet of Things as key challenges

Digitization is becoming increasingly important. In this context, we hear the term Industry 4.0 all the time, but what does it really mean? After mechanization (Industry 1.0), mass production (Industry 2.0) and automation (Industry 3.0), Industry 4.0 marks the beginning of the fourth industrial revolution. New technologies are boosting production for companies, creating growth opportunities and competitive benefits. The basic idea behind these developments is the creation of “smart factories”. Automation is optimized by intelligent machines that communicate and exchange data independently.

Industry 4.0 goes hand in hand with the Internet of Things

The Internet of Things (IoT) is a logical evolutionary step. Up to now, it has been mainly us humans who have exchanged information with each other. In the future, however, machines and inanimate objects that are not normally connected to the internet will independently exchange data with each other. When connected to a network, they will be able to communicate with other systems in the chain. The IoT is the bridge between the physical and digital worlds and is an integral part of many Industry 4.0 projects. According to the study “Wettbewerbsfaktor Analytics im Internet der Dinge” by the University of Potsdam, 43.5% of the companies surveyed stated that they have actively addressed the issue of the Internet of Things. 15% have integrated IoT applications into their existing processes to increase efficiency, with the main area of application being process monitoring. The great potential of the Internet of Things can be seen in the manufacturing industry.

Big data from the Internet of Things

Imagine a machine that can send its performance data directly to the manufacturer via the Internet. If, for example, a component or value is not working properly, the machine could inform the operator and send a message to the manufacturer, whereupon an employee would deliver the specific spare parts. Smart factories are an evolution of this basic idea. For example, a manufacturing plant could start production automatically when it receives an order. However, the global volume of data is also growing in line with these ERP developments. In the context of Industry 4.0, data is generated in particular by machines, transport equipment, workpieces and products. It is often measurement and sensor data that is collected automatically. There are two aspects to big data. One is the ever-increasing volume of data, and the other is the IT solutions that help companies manage this data.

What role does ERP play in this development?

Until now, most ERP systems have tended to be used within the company. The need for complete and transparent data is growing. The ERP system serves as a central hub and will become even more important as an integration platform. Customer information and product data will be linked with production and logistics data from the manufacturing level. The Internet of Things is becoming an additional source of data. As the number of applications grows, so does the need for interfaces. The ERP system also plays an important role in smart factories. Almost all business processes can be supported and external systems and platforms can be integrated. Important company data is managed and stored appropriately. It is not yet clear to what extent these developments will be adopted by companies. A custom, unified database is particularly important to ensure that all processes run hand in hand. Without an intact IT infrastructure, the ideas cannot be realized, as there are many business processes that need to be managed.

ERP grows beyond itself – grow with it!

If you would like to learn more about ERP developments or the full range of TimeLine ERP features, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

The process of a successful ERP system implementation

Blog

The implementation of an ERP system is often a long and complex process with many individual steps. Depending on the complexity of the requirements and the number of employees, it can take several months before the system is integrated into your daily operations. Such a project costs time, resources, and probably some nerves. But before you throw in the towel, ERP implementation is like any other project: planning is everything. The success of an ERP project rarely depends on the technology. But what makes it fail? It is more likely to be poorly defined goals, unclear process structures, or even employee resistance. What you need is good preparation and a project team that works together from the start. Here is an overview of the ERP implementation process – and what else you need to consider to make your project a success.

ERP implementation preparation and analysis

Before you start researching ERP vendors, ask yourself if you are ready for an ERP system. For example, even the best software cannot compensate for a lack of foundation or organization. And as a small or midsize business, you often have limited resources. Therefore, you should not be lax in your initial considerations. One key factor, for example, is centralized data management in your company. Your data should be up-to-date, and your processes should be documented regularly. What do you want to achieve by implementing an ERP system? What do you want the system to do? These are fundamental questions, but many companies take them lightly. Once you have clarified the essentials, you have laid the foundation for your ERP project.

Requirements analysis and specifications

The next thing on your list should be a requirements analysis. Try to be as open-minded as possible. To gain new perspectives, it can be helpful to bring in outside experts – this often allows you to see your company through different eyes. It can also be helpful to involve your employees in the process. After all, they are the ones who will be using the ERP software. The best way to do this is with a tour of the company and a face-to-face meeting. A good way to capture your business goals and requirements for the ERP system is to create a requirement specification document. This document is the basis for further ERP selection. A distinction is made between technical and functional requirements. However, try to keep your expectations solution-neutral and leave the implementation to your future ERP vendor.

In addition to requirements for the ERP system, the document should include a description of your company and the market environment. Information about your products, services, strengths, and current IT infrastructure is also useful. A timeline and a contact person are also important. Take some time to formulate this, as adjustments are usually costly in hindsight.

Project manager and key user

In addition to conducting a requirements analysis and writing a specification, the project team is at least as important when implementing an ERP system. You will need a project manager and a key user. When choosing these people, you should consider their personalities. For example, the project manager should be assertive, but also forceful. They should have an eye for the big picture and be close to the day-to-day operations. Key users, on the other hand, represent the interests of your employees. They mediate, act as mentors, and point out the benefits and changes that will result from the implementation of an ERP system. They try to be sensitive to fears and reservations, and they are the ones who train employees on the system. Your key user should have as much experience and expertise as possible. Be aware that both positions require a lot of time. Time that has to be distributed among other employees.

From longlist to shortlist

Finding the right ERP vendor is not easy. But since you will be working with them for years to come, it is not a decision to be taken lightly. However, there is a good way to make your search a little easier. Start your search by researching on the Internet and keeping a checklist. Write down a rough summary of the providers you are considering. This so-called longlist will give you an initial overview. Be sure to consider both technical and functional requirements: For example, do you need to interface with other systems? Once you have compiled a list of vendors, send them the specifications you have prepared. See how they respond to your request. How long do you have to wait for a response? Is the email a boilerplate or do you get a personalized response? This will help you filter out other ERP vendors.

The remaining candidates form your shortlist and you should schedule a short presentation with them. Here you can present your current situation and clarify any questions. This is followed by an ERP workshop. A presentation tailored to your needs. The vendor can demonstrate the functionality you need in their own system, using sample data or a small selection of your original data. This will give you an idea of how the ERP system would fit into your business. The entire project team should attend the workshop. Pay attention to the personal level as well, they should get along with each other. After the workshop, the vendor can tell you exactly what the price will be. Before, only the license cost can be quoted.

ERP system deployment – the implementation phase

Once you have selected a suitable ERP vendor, the implementation can begin. Your vendor will show you how they plan to implement your requirements in a requirements specification. The terms requirements specification and functional specification are often used interchangeably, but they are two different documents. Read the requirements specification carefully, as it is the foundation of your ERP implementation. This will allow you to minimize adjustments as the project progresses. Next comes the installation of the system with demo data, setup and customization. Finally, all that remains is the transfer of your data. The staff is usually trained by your key user. And that’s it! It goes live.

Checklist: Are you ready for ERP implementation?

Is there an up-to-date, centralized database?
Is the project team in place?
Are business processes regularly and consistently entered into the system?
Is the exchange of information governed by processes?

ERP implementation summary

For a better overview, here is a short summary of each of the steps:

Perform a requirements analysis
Create a requirement specification
Assemble a project team
Create a long and short list
Conduct an ERP workshop
Make an ERP selection
Have specifications written
Install the ERP software
Data Transfer
Customization & Reporting
Actual operation (day-to-day business)

Want to learn more about ERP implementation or the full range of TimeLine ERP functionality? Send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

Success factors for your ERP goals

Blog

A new ERP system can have many positive effects on your company. It influences nearly every business process and internal workflow. Used correctly, it makes daily tasks easier and better, provides structure and improves communication. Your company becomes more transparent and therefore more future-proof. The last article described step-by-step how to introduce an ERP system into your company – from planning to selection and implementation. In this article, you will learn how you can organize ERP management to ensure that your investment bears fruit. There are some success factors – and also mistakes that you should avoid, when you want to reach your ERP goals.

Success factors are defined as “factors and conditions that determine the success or failure of entrepreneurial activity”. Critical success factors are factors “of particularly great importance” (Dömer 1998). If these factors are right, your ERP project will also be successful. There is no doubt that there are countless factors that influence the success or failure of a project in your organization.

erp-management-erfolgsfaktoren

Are company-wide framework conditions in place?

How do you organize ERP management? First of all, it is important to define the framework conditions for your project in advance – these include objectives, resources and costs. You should always keep an eye on these during the project. This also includes regularly documenting and communicating project progress. In addition to the selection of your project team, the distribution of roles within the team itself is also important for the project to run smoothly. Functions and tasks should be clearly distributed. The challenge here is that the project should not become purely additional work. Try to free the members of the project from their line activities as far as possible. There will probably still be times when the days in the office get longer. Small gestures of recognition can help to provide new motivation.

Change management: one of the most important success factors

Probably the most important aspect in making the new ERP solution a success is your employees. Effective change management is one of the most important success factors of every ERP goal. Even the best ERP system has no added value for a company if your employees resist it. To prevent this, you should not put the fully implemented system in front of the workforce. Get your employees on board as early as possible – that way you can quickly get them excited about the new solution. It is best to announce the upcoming changes as soon as the introduction of the new system has been decided. But what is the best way to do this?

Good ERP management: ERP goals are reached with teamwork

Announce the transformation step by step. And preferably in person, not by circular email. This will give your employees time to get used to the idea and not feel overwhelmed. The best method is to communicate your plans and concerns openly – this way you can also prevent rumors and create transparency. This includes, for example, the people involved, a timetable and also what will change in the future. If you would like to bring in an ERP manager or consultant, introduce them to your employees. A staff meeting, for example, provides a good platform. This way, all employees are present and have the same level of information. Questions can be asked and answered directly. Furthermore, you should not present the ERP implementation as a pure IT project. Otherwise, it could quickly give the impression that it is only a technical changeover.

What to do if employees reject the ERP system?

If your employees reject the new ERP system, there is rarely any malicious intent behind it. Rather, the fear of new or changed operational and organizational processes comes to the fore: processes become transparent, errors are detected more quickly and the fear of a perceived operating error increases. This fear is not entirely unfounded, as a modern ERP system maps processes automatically on the basis of correct data – which is precisely what makes it so effective. It is therefore important that you take your employees’ fears seriously and do not ignore them. Point out the advantages of the new ERP solution and the positive effects that the changeover will have on the entire company and your goals. Make it clear that this is a future-oriented project: the ERP software secures jobs and offers new opportunities to contribute to the company.

Formulate effective goals – thanks to ERP management

Once you have the workforce on your side, it’s time to formulate your ERP goals. You can only be successful if you have goals. Unclear goals and imprecise requirements are one of the most common reasons why projects fail – followed by a lack of resources and a project budget that is too small.

“Improve structures and processes”

This may be a goal, but it is not well formulated. Which structures? Which processes? How exactly are they to be improved? In what timeframe? And how do you know when the goal has been achieved? If you define such an ERP goal at the beginning of a project, there is a high probability of disappointment with the result. Especially when several parties are involved, there is a lot of room for interpretation.

Make your goals SMART – with the help of ERP management

A clear formulation of objectives is therefore particularly important. The SMART method consists of five criteria. Smart goals should be:

Specific
Measurable
Accepted
Realistic
Scheduled

What this means in detail is described below.

Specific

Specific goals are important so that everyone involved has the same idea of what the project is supposed to achieve – and there is no room for interpretation. These five questions will help you formulate them:

What exactly do you want to achieve?
Why is this important?
Who is involved?
When do you want to have a result?
How do you plan to proceed?

Measurable

Define criteria that can be used to measure whether you have achieved the objectives. These can be concrete figures or data. This allows you to assess progress – but also to take countermeasures if you stray too far from the defined goals.

How can the achievement of objectives be measured?
When do I know that I have achieved the target?

Accepted

Imagine that you have to work on a goal that cannot be achieved. Make sure that your goals are challenging but feasible. Otherwise, your motivation will quickly wane.

Is the goal motivating and accepted by everyone involved?
Can it be achieved through the project?

Realistic

Realistic goals are closely linked to acceptance. If goals are realistic, they are generally accepted. If goals are formulated unrealistically, people tend to ignore them. It is also important here whether the achievement of the goal can be influenced.

Do you have the necessary resources?
Is the timeframe sufficient?

Scheduled

Clear deadlines are important for your team. Tasks without a deadline are often not implemented promptly. But not all ERP goals have to be scheduled. For example, there are financial targets that should be achieved regardless of a specific date.

When should the target be achieved?
Is the goal achievable within the project duration?

Once you have identified and recorded your ERP goals, you are already a big step further in your growth. Now you need to keep an eye on them and make sure you don’t stray from the path. The success of an ERP implementation does not depend on the technology – it is the people who work with the ERP system. That’s why none of the success factors mentioned revolve around the software itself.

Would you like to find out more about ERP implementation, ERP management or the entire range of TimeLine ERP functions? Send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

GDPR 2024- What you need to know as an entrepreneur

Blog

From May 25, 2018, the General Data Protection Regulation (GDPR) will apply in all member states. Important for you to know: As a business owner, you must have already implemented the new regulations by then. The GDPR brings with it a number of changes. According to DGAP, companies will spend an average of eight hours a day searching through their databases in order to meet the new requirements. Around 60% of European companies are not sufficiently prepared for the new guidelines. Find out below what the GDPR will change in terms of data protection and what you should bear in mind to avoid expensive fines.

GDPR – what is it all about?

The GDPR is a regulation adopted by the European Parliament. You can read the exact wording of the regulation here. The aim is to ensure uniform data protection law and the protection of personal data. Personal data includes a person’s name, address, telephone number, date of birth, email address, income and account details as well as health information. However, it also includes the license plate number, IP address or purchasing, surfing and clicking behavior on the Internet. The GDPR regulates data protection law, i.e. how companies handle this data. The main elements of the current Federal Data Protection Act (BDSG) remain in place, but many regulations are also tightened. The GDPR applies to all companies within the EU and also to companies based outside the EU if they process the data of persons from the EU or have a branch in the EU. Every company that is active on the internet is affected.

What is changing?

If you have taken good care of your data protection up to now, you can breathe a sigh of relief. As an entrepreneur in Germany, you are definitely at an advantage, as the regulations were already quite strict. Many of the familiar principles will not change.

That remains

The main objective of the data protection regulation remains the same: The fundamental rights of every natural person should be protected. Personal data may still not be collected, processed or used unless you have explicit permission to do so. In addition, you may only collect and process as much data as you actually need. The data must be accurate, factually correct and always up to date. Furthermore, it may not be used for purposes other than those for which it was collected.

This is new

Order data processing (Art. 28 ff. GDPR)

In the case of commissioned data processing, personal data is processed by a contractor on behalf of the controller. For example, an external customer center or data center is used. According to the BDSG, only the client was previously responsible for data processing. In future, however, both the client and the contractor will be equally responsible. The contract does not have to be concluded in writing but can now also be concluded electronically.

IMPORTANT FOR OUR CUSTOMERS: Of course, this also affects our customers, because if assistance is provided via remote support (TeamViewer, Remote Desktop, etc.), we may gain insight into personal data (contact persons at customers/suppliers/interests, calendar or e-mail content or data on your employees). You will shortly receive an information mailing from our data protection officer explaining this to you. We also have ready-made contracts for our customers that cover the key points.

Consent (Art. 7 GDPR)

If you process personal data in your company, you must obtain the express consent of your customers. A preset tick in a checkbox on your website, for example, is no longer sufficient and does not constitute effective consent. Consent must therefore be given through a clear action and be voluntary. For example, a contract must not be linked to the processing of data that has nothing to do with the service or product. Furthermore, it must be possible to withdraw consent at any time. Withdrawing consent must be as easy as giving consent. In the case of minors, consent without parental consent is only effective from the age of 16. This limit can be lowered to 13 years by the member states.

Right to be forgotten (Art. 17 GDPR)

Upon request, companies must delete personal data if they are no longer authorized to use the data. The data must be deleted if the purpose for the data processing no longer applies, if it was unlawful or if the data subject has withdrawn their consent.

Data portability (Art. 20 GDPR)

Users can take personal data with them to another provider, for example if they move to another bank, a new employer or other social networks. However, it is still unclear how this will be implemented in practice.

Data security (Article 32 GDPR)

In order to protect personal data in the event of misuse or loss, data processors must take appropriate technical and organizational measures. The exact nature of these measures depends on the state of the art, the necessary implementation costs and the given circumstances. The controller is obliged to regularly review data security.

Notification obligations (Art. 33 para. 1 GDPR)

There are now specific deadlines in the event of a data breach. You must report any personal data breach to the competent supervisory authority within 72 hours if the rights and obligations of the data subject are at risk. As part of this, there will also be a documentation obligation for companies vis-à-vis the authority in order to verify the reporting obligation.

Data protection officer (Art. 39 GDPR)

From now on, there will be a data protection officer throughout the EU. Among other things, the data protection officer will be responsible for monitoring compliance with the regulation and providing training.

Simplified complaints (Art. 77 GDPR)

In future, it will be possible to lodge a complaint with the data protection authority in your own country, regardless of where the company in question is based. In future, associations will also be able to lodge complaints on behalf of consumers.

What needs to be done?

In order to meet the new requirements, you should make some preparations. But where is the best place to start? After all, there is not much time left before the new regulation comes into force. You should therefore check now what data protection measures are in place in your company and whether they comply with the GDPR. It is best to draw up a concept to inform and train your employees about the new requirements. The most important points are summarized below:

Structure and responsibilities

Does your company have a data protection policy and are responsibilities defined? Who has access to which data and who decides on data processing? It is best to appoint a data protection officer. If you work with special personal data, such as health data, you may be obliged to appoint a data protection officer, regardless of how many employees your company has. If you already have a data protection officer, you should register them with the relevant supervisory authority.

Adapt your contracts

If you work with service providers who process personal data on your behalf, you should adapt the contracts. The content will change with the GDPR. If the contracts are not complete, you could face a fine. Also check the contracts with other contractual partners, particularly regarding liability and data protection.

Transparency and information obligations

Transparency is one of the key principles of data protection law. You must inform the data subject about the processing as soon as the data is collected. This includes, for example, the purpose of use, duration of storage or the right of withdrawal.

Change your forms and consents

As described above, the GDPR imposes stricter rules on the handling of consent. With every consent, information must now also be provided about the withdrawal options. You must also observe certain restrictions if you wish to integrate consent into your terms and conditions or link it to another action, such as the conclusion of a contract. However, there are also simplifications: the written form is no longer required.

Adapt your data protection declarations

The GDPR significantly increases the information obligations towards data subjects. The person must be informed about every process in which you process their data. Each privacy policy must also contain the name and contact details of the website operator. If you have a data protection officer, their contact details must also be provided. You must also provide information on the legal basis and purpose of the processing.

Data protection violations

If a data breach occurs, this must be reported to the competent authority within 72 hours. You should ensure that a breach is also recognized immediately.

Train your employees

In view of the upcoming changes, it is necessary to know why data protection is important and what the consequences are if it is not complied with. You should therefore sensitize all employees who work with personal data in your company, for example from customers or suppliers to the topic of data protection and familiarize them with the associated requirements. Ensure that data is not processed without authorization. According to Art. 39 GDPR, it is the task of the data protection officer to train employees. Failure to comply with the new regulations may result in a fine.

Fines for violations

The conditions for the imposition of a fine are described in Articles 83 and 84 of the GDPR. Violations are likely to result in greater sanctions than before. However, it depends on the type of infringement. For example, a distinction is made as to whether the breach was intentional or negligent or whether it was reported or otherwise known to the authority. Fines of up to EUR 10 million or, in the case of a company, up to 2% of the global annual turnover of the previous financial year are imposed for infringements. In the case of serious infringements, the supervisory authorities can impose fines of up to EUR 20 million or up to 4% of annual global turnover.

Further information

If you would like to find out more about the General Data Protection Regulation or the full range of TimeLine ERP functions, please send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

Cloud computing – all about the data cloud

Blog

Whether start-ups, small businesses, medium-sized companies or large and established corporations – the benefits of the cloud are becoming increasingly popular. More and more companies are outsourcing their business processes and data to external data centers. Gone are the days when you had to worry about broken hard disks, lost USB sticks or accidentally deleting your data irrevocably. The available bandwidths are getting higher and higher and are less and less of a problem these days. This makes it possible to access large amounts of data from anywhere and, above all, quickly. But what exactly is cloud computing? What exactly happens to the data? What are the advantages? And how can you as a company benefit from an ERP cloud computing solution in the future?

What exactly is cloud computing?

Many of the terms used to describe digital innovations are older than you might think. This is also the case with the cloud. The first attempts were made back in the 1950s, but the technical conditions for implementation were still lacking at the time. Today, the concept is much more mature. The basic principle can be explained like this: Various workspaces are no longer stored on your own hard disk or the company’s internal computer but are made available via the Internet. A service provider provides you with a server in the form of a virtual data center. You can then access various applications for a fee. These can be, for example, individual programs, entire software packages, storage space or computing power. You do not need to install anything on your own computer, tablet or smartphone, all you need is access to the internet.

What are the three forms of cloud computing?

Cloud services can be divided into three different categories. Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

Infrastructure as a Service (IaaS)

IaaS is the simplest form of service. It is provided and managed via the internet. The components of the infrastructure provided include, for example, servers, computing and network capacities, communication devices such as routers, switches or firewalls, storage space and systems for archiving and data security. Access is via private and public networks. You only use the services that you actually need. You can expand or reduce the resources of this IT-infrastructure as you wish.

Platform as a Service (PaaS)

PaaS is a complete development and provisioning environment. It builds on the infrastructure of IaaS and is also equipped with everything you need to develop new software. PaaS not only supports you in creating and testing an application, but also in managing and updating it.

Software as a Service (SaaS)

SaaS is a method of providing software applications via the Internet. It is provided on demand and usually on a subscription basis. You connect to cloud-based apps via the internet and can then use them. Common examples include email, calendar and office tools. The service provider manages the hardware and software and ensures the availability and security of the app and your data when you sign a contract. They also take care of all maintenance tasks, such as installing software upgrades and security patches. With SaaS, your company can provide and use an app with minimal investment costs. With all three versions, you usually pay a fixed fee to the provider, usually on a monthly basis.

What cloud computing models are there?

No two clouds are the same. There are different types, and you can choose between three models:

Public cloud

The public cloud is a service that is accessible to everyone via the internet. These are often software as a service, such as web-based email services, which are used by private end users. In the public cloud, you share a common infrastructure with many other users. However, with this model, you as a user have little influence on data protection and security aspects, as well as the location and type of data storage. In addition, network bandwidth and availability are limited by predefined service packages.

Private cloud

The private cloud is an internal, organization-related cloud that only makes its applications available to authorized users. In contrast to the public cloud, the private cloud cannot be accessed by the general public via the internet. This model relocates the cloud either to the company’s own computers or to servers from external providers. Access is either via the demarcated intranet or via a closed virtual private network (VPN). As this form of cloud computing does not have to be shared with other users, it offers a high level of data security, control and flexibility.

Hybrid cloud

The hybrid cloud is a mixture of private cloud and public cloud. It attempts to combine the advantages of both cloud models in a joint concept and can be used in a variety of ways. You can store sensitive programs and data on your own servers and use certain services via the internet with public providers to conserve your own resources. Which cloud model you should choose depends on your individual requirements. Above all, however, you should keep security and data protection in mind.

What makes cloud computing so popular?

There are many reasons to use the cloud. Three major advantages are listed below:

Reduced costs

Probably the biggest advantage of a cloud service is the cost savings. The usually costly purchase and maintenance of your own servers, as well as maintenance, backups and updates, are completely eliminated. Hardware which requires regular upgrades to keep it up to date with the latest technology, is a significant cost factor. If you use a cloud service, you can confidently leave this worry to the respective provider. The same applies to the required software. This does not have to be purchased or installed and maintained on all computers. Instead, you usually pay a fixed monthly fee to the service provider and can conveniently use their services. You can also save the costs and, above all, the time for support and administration. Your IT-team will thank you for it!

Flexibility

Flexibility is also an increasingly important factor in many business processes. Using the cloud also offers you several advantages here. The files you store in the cloud are always available and on all end devices. It doesn’t matter whether you are at the company or working from home, all you need is access to the internet. It is also no problem to work on a file with several people at the same time. The files are automatically synchronized so that you can access the latest version on any device. Even large amounts of data can be made available within a very short time and with just a few mouse clicks. You can expand or reduce your storage space at any time – depending on what you need at the time. This avoids bottlenecks and overcapacity.

Security

Another major advantage is that you no longer have to worry about whether your data is secure. You don’t need a backup strategy or your own server. As a user, you also don’t have to worry about licenses or software updates. The backup is off-site, and your data is securely encrypted. The 3-2-1 backup rule is often used in this context to prevent your data from being lost. In a nutshell, the rule states that three copies of your data are created – primary storage, backup and off-site copy. Two different storage technologies are used for this and one of them is stored off-site. This distribution of risk across different technologies minimizes data loss due to system-related errors. So, if external circumstances such as flooding, theft or a fire render the data unusable, it can be ensured that there is another copy and the data is not lost.

The ERP cloud computing solution from Timeline ERP: the next step for your company

As you have read, you benefit from numerous advantages of a cloud – this is all the more true if you opt for an online ERP (Enterprise Resource Planning) solution. With ERP cloud computing you can easily control and analyze all your processes within your company (not just in the area of production) online and in real time – with the proven benefits of a cloud solution. As an experienced cloud ERP provider, Timeline ERP provides you with the necessary ERP software in the private cloud. Alternatively, a database can also be set up on your own server (on-premise). This allows you to quickly find the best option when implementing your ERP cloud computing. We will also be happy to advise you on your choice of cloud ERP software.

We clarify all questions about your new ERP cloud computing system

If you would like to find out more about ERP cloud computing or all TimeLine ERP products and functions, please send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you! In our blog you can also discover more exciting background articles on the topic of ERP and how our ERP solutions can take your company to the next level.

22. April 2024