A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or they can be non-profit organizations that operate to fulfill a charitable mission or further a social cause.
What are the challenges when you will start a business?
When you start a new business you came up with no big issues like you not need to buy or invest in any software or you do not need to build something for yourself you just maintain all your data in a book. So when you start something new you can keep all the data in a book only.
when your business expands and you start in some new cities then you need small software to maintain all this data. These are the new add on you need when you expand,
- data entry operator
- small software
and now after some more years, your business grow more and you expand in some other states then these are the challenges you found,
- employee management
The language barrier is the main issue you will face when you move to other states.
Taxation is another challenge which you found in this growth every state has its own tax modules so we want to implement all those differences in our business.
employee management is also a big issue because you need to keep this information on which module is working.
At this point in time you need a big software and to handle that software you need some skilled people and good hardware.
and then that point comes when you expand globally and your business is in so many countries at this point in time if you want to build your own software it will cost you a lot and a lot of time to build that application. So you started looking for some ready-made solution which we can call ERP application.
ERP(Enterprise Resource Planning)
ERP stands for enterprise resource planning, but what does ERP mean? The simplest way to define ERP is to think about all the core processes needed to run a company: finance, HR, manufacturing, supply chain, services, procurement, and others. At its most basic level, ERP integrates these processes into a single system.
Why you can not build your own ERP
These are the main reason why you should not build your own ERP,
- Every country has its own employment work structure.
- every country has a different currency.
- every country has different taxation rules.
- If you build ERP it will cost you a lot.
- You need so much time to build your own ERP.
- You need to hire 20-30 people with great skills and it will take so much time so a lot of costs.
- you need to gather all the business information.
- you need to analyze the business information.
- You need to prepare the documentation for each module.
- Find the software and hardware to build the ERP
- test the product
- implementation issue.
What is the benefit when you go a ready-made ERP
- you save all the cost you spent on to build an ERP
- you save a lot of time
- testing not required
- you just need to gather and analyses the business information and you are good to go
In the next article, we will learn about oracle apps.