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Can an SME use an ERP system? Is an ERP system difficult to implement? Or is an ERP system just too expensive?
In this article, we set the record straight about SaaS ERP software.
SaaS ERP is only for large IT services companies
Myth!
According to an OpinionWay study, one of the main challenges facing small and medium-sized businesses is improving day-to-day business management.
The company’s digital transformation can help in this regard. In fact, 43% of French SME executives believe that this requires digital management tools. (Source: Opinionway for Qonto)
That’s why, right from the start of your IT services company, implementing an ERP system will give you a solid foundation. There are many options on the market for small and medium-sized businesses and very small businesses.
The advantage of implementing an ERP system right from the start is that you optimize your human and financial resources from the very beginning.
In fact, your employees can focus on their core responsibilities rather than administrative tasks, thereby helping your business grow.
Implementing SaaS ERP software is complex
Myth and Reality!
SaaS ERP systems are marketed as out-of-the-box solutions with multiple modules that meet the needs of the company that has chosen the solution. All that’s left to do is configure the system as needed.
Even though implementing a SaaS ERP system isn’t as complex as one might think, it’s a project that requires careful planning or it risks becoming complex.
There is a very useful tool to help you prepare for this project: “the project specifications.”
Through the project specifications, you will be able to lay the groundwork for the project by conducting an internal analysis of your company, defining the “why” behind the project, your expectations, and, in particular, your constraints. Another point that must not be overlooked is human and financial resources.
This document will serve as the basis for your discussions with the selected service providers.
Be sure to involve key employees, as they will be best positioned to provide feedback on their department’s strengths and weaknesses.
A SaaS ERP solution is expensive
Myth!
If there’s one advantage to choosing a SaaS ERP system, it’s its low implementation and operating costs. Since the SaaS solution is hosted on servers outside your company’s digital infrastructure, your company doesn’t need to invest in additional IT infrastructure—such as networks, servers, storage, and so on.
In addition, a SaaS solution makes it easy to adjust the number of subscriptions and thusoptimize costs.
In summary, the costs you need to consider for a SaaS ERP system are:
- Internet connection.
- The subscription to the solution is based on the number of users.
- Employee training.
- And, if necessary, any specific developments.
The features of a SaaS ERP don’t change that much
Myth!
A SaaS ERP system is constantly evolving because it must adapt to changes in users’ business operations to best meet their needs. It must also adapt to regulatory changes.
Changes to business software occur through version updates.
At Veryswing, for our VSActivity SaaS ERP software, we have implemented FYN (Fit Your Needs), a tool that allows our customers to submit feature requests, which are then put to a vote by other customers.
Based on the votes received, we incorporate these changes into the roadmap, which means new features are released several times a year in our SaaS applications.
SaaS management software cannot integrate with other tools
Myth!
In a nutshell: interoperability
Interoperability refers to the ability of two systems to communicate with each other.
Companies need to communicate with other stakeholders in their environment (customers, suppliers, government agencies). As a result, they must be able to transmit data from their information systems. This is where interoperability comes into play.
This ensures communication between the two software programs. This communication is made possible by recognized standards established by the RGI (General Interoperability Regulations).
This also gives companies the freedom to choose their software.
As a result, certain solutions comply with the standards and specifications established by the RGI, which allows companies to integrate their payroll or accounting software, for example, with their ERP software or the software used by their stakeholders.
With ERP software, it will be difficult to comply with constantly changing regulations (GDPR, invoicing, etc.)
Myth!
On the contrary, the software package makes it easier for service companies to comply with regulations—whether it’s the GDPR in terms of personnel administration or the transition to electronic invoicing.
In fact, 43% of companies consult their business management software provider about compliance. (Source: Opinionway)
In fact, the ERP system offers numerous features that help companies achieve compliance, such as:
- Centralizing data will make management easier.
- Data reliability and automatic updates.
- Access control: This allows for the management of access to certain information.
- Data classification using various modules.
- Security Management.
- Anonymization and archiving features.
- Digitization.
- Etc
If I switch to a different ERP solution, I’ll lose the data I’ve accumulated over several years
Myth!
Implementing a new management solution within your IT services company to replace your old information system does not mean you will lose your existing data.
Implementing the new ERP system in SaaS mode requires what is known as data migration.
It simply involves moving the company’s data to a new database. This process is called data migration.
This step is nevertheless important, as the quality of your data will depend on its success.
SaaS ERP helps reduce repetitive and time-consuming tasks
Reality!
Before the ERP system was implemented, your company relied on Excel spreadsheets in which the same data was entered multiple times in different places.
Thanks to the centralization of your information system andthe automation provided by the ERP, the same data is reused and/or automatically duplicated wherever necessary.
As a result, this reduces repetitive and time-consuming data entry by your employees—which, moreover, adds no value.
This also helps reduce data entry errors caused by having to enter the same information multiple times.
SaaS business software enables data to be integrated across systems
Reality!
An ERP system allows you to link data together to provide the right information at the right time. This is possible thanks to the centralization of data in a single information system. That’s why, for example, when you create an invoice, the information is already pre-filled.
Since the ERP system has retrieved the information that was gradually entered into the IT system (order, service provider’s name, etc.).
ERP software helps you save time and money
Reality!
Process automation and the integration of data systems make it possible to complete tasks—which used to take several days—in a fraction of the time.
For example, tasks such as customer relations, billing, and payroll—which require reliable and up-to-date data—are completed more quickly.
On the one hand, the employee in charge no longer has to go searching for information, since the data is available within the ERP application; on the other hand, there is no longer a need to re-enter data multiple times.
In addition, an ERP system allows you to eliminate the many other tools—which often aren’t integrated—that you previously used to manage your business (HRIS, CRM, accounting, etc.).
So you’re also saving money.
It is not possible to use SaaS ERP software on mobile devices
Myth!
One of the many benefits of using a SaaS ERP system is the ability to access it on the go.
SaaS software is a solution hosted in the cloud and therefore accessible via the Internet. As a result, users of a SaaS tool can access data regardless of the physical hardware.
In addition, if the computer is stolen or breaks down, users will still have access to company information thanks to remote server hosting.
The only requirement for accessing the SaaS ERP is an Internet connection and, of course, a computer, tablet, or cell phone.
Some ERP systems even offer a mobile app to make it even easier for you to access company information.
A SaaS solution is not secure
Myth!
According to a study by Panorama Consulting, the main concerns of companies that do not choose a cloud-based ERP system are:
- The risks of data loss.
- Security vulnerabilities.
In fact, with software accessible via the Internet, cyberattacks have emerged and created a sense of insecurity for businesses.
Nevertheless, ERP solution providers have clearly identified companies’ concerns about the cloud. That is why, to reassure companies, they offer guarantees. These guarantees are factors you can consider when choosing your SaaS ERP solution:
- Certifications and accreditations (ISO 27001 certification, ISAE 3402 accreditation).
- How users access the solution (two-factor authentication, etc.).
- Data protection in transit (TLS [Transport Layer Security] protocol).
- Data encryption (SSL certification).
- The type of infrastructure.
- The geographic location where the data is stored.
- The presence of a backup system.
- The implementation of penetration tests.
- Etc
It is not possible to customize industry-specific ERP software
Myth!
You can request specific customizations from your software vendor or add what are known as add-ons, which are additional features.
It’s up to you to determine whether this project fits within your budget and, in particular, to clearly explain your expectations.
Any ERP solution could be suitable for my IT services company
Myth!
Not all ERP systems are suitable for every company. In fact, each industry has its own unique characteristics.
It is best to choose an industry-specific ERP system, as this providesIT services companies with functional coverage tailored to their business lines. Furthermore, the costs of customization would quickly drive up the price tag.
By choosing an industry-specific ERP system, you gain access to the vendor’s industry expertise related to your line of business. This is a significant advantage for successfully implementing the ERP project.
The market-leading software is sure to meet my needs and expectations
Myth!
You should definitely try out the solution before making your decision. Evaluating a solution involves some degree of subjectivity. This could includeusability, the business relationship, values, and so on.
You should form your own opinion about the ERP solution. Select several solutions that meet your criteria and try them out.
In addition, you should also consider your budget—is the proposed rate within your means?
With a SaaS ERP system, internal processes are bound to improve
Myth and Reality!
Equipping your IT services company with ERP software is an opportunity to analyze your internal processes to see what works and what doesn’t.
In fact, if a process wasn’t optimized without the ERP, it wouldn’t necessarily be optimized with it.
Of course, the publisher is here to support you throughout this process.
ERP enables the generation of reliable reports
Reality!
Through the daily activities performed by employees, the data in the ERP application is automatically updated, enabling the generation of reports based on reliable, real-time data.
ERP software provides a comprehensive view of the IT services company’s operations
Reality!
The SaaS ERP provides charts and dashboards to support your strategic planning.
This is made possible by the information available within the IT solution. Decision-makers have insight into the company’s performance and can thus develop forecasts.
They may also plan for certain investments, the development of a new product, and so on.
In business management, reporting is an indispensable and powerful tool.
A simple email to employees is all it takes to inform them about the implementation of a new SaaS ERP system
Myth!
The main obstacle to implementing an ERP system stems from the need for company employees to change their habits, which leads to resistance.
That is why it is very important to implement a change management strategy .
The change management process presents real challenges for your company:
- Gain employee buy-in for the new project.
- Anticipate future obstacles (resistant employees, training, inadequate processes, etc.).
- Involve the relevant employees.
- Allocate the necessary human and financial resources to support the transition.
Implementing an ERP system within your organization involves changes to your employees’ work environment. These changes can cause stress, fear, or even discomfort, which could lead to resistance to the project.
A study showed that companies that took the time to implement this strategy found that:
- Greater acceptance of the solution.
- Productivity growth.
- Higher profits.
(Source: Panorama Consulting)
ERP software helps increase productivity
Reality!
A study by Panorama Consulting showed that the main benefits of implementing an ERP system are:
- Operational Efficiency.
- Reporting and visibility.
- Technology Update.
- Growth and competitiveness.
With ERP, companies reduce time-consuming tasks, break down silos, and gain access to better data to support their strategic decisions.
Thanks to centralized data, the quality of interactions with suppliers is improving, and the customer experience is getting better.
And finally, the technology updates managed by the solution’s provider allow the company to focus on its core business without having to worry about maintenance.
SaaS ERP software is a challenging tool
Myth and Reality!
According to Panorama Consulting’s 2021 report, 76.6% of companies preferSaaS ERP because it is easy to use.
Not all SaaS ERP systems are complicated to use. Some are more intuitive than others.
You’ll get a sense of the tool’s features by trying it out, which is why it’s important to test different solutions.
However, you should not neglect training your employees: the better they master the software, the greater the benefits will be.
VSActivity: The SaaS ERP That Supports the Growth of IT Services Companies
Are you still hesitant to switch to a SaaS ERP because of common misconceptions? With VSActivity, you can finally separate fact from fiction.
A SaaS solution designed for IT services companies
VSActivity is an ERP software solution designed specifically for service-based businesses. As a SaaS solution, it adapts to your work pace and business needs without compromising performance.
Simple and secure implementation
Thanks to an intuitive interface, deployment is quick and doesn’t require excessive use of your internal resources. You also benefit from cloud security that meets the highest industry standards.
Ready-to-use features
VSActivity allows you to effectively manage sales operations, sales administration, and customer relations, while ensuring the traceability of your operations.
Complete accessibility, no matter where you are
With 24/7 online access, your teams can collaborate remotely, track activity in real time, and make decisions more quickly.
Dedicated business support
Our experts will support you throughout your ERP project, using a proven methodology and drawing on their in-depth understanding of the challenges faced by IT services companies and consulting firms.
Dispel the myths—try VSActivity in real-world conditions
Switching to a SaaS ERP has never been easier. Gain agility, reliability, and productivity, while maintaining control over your data.
👉 Book a free demo with one of our consultants today, and discover how VSActivity can help you take a real leap forward in your digital transformation.
