{"id":2183,"date":"2019-06-04T14:05:14","date_gmt":"2019-06-04T14:05:14","guid":{"rendered":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/?p=2183"},"modified":"2022-07-08T20:02:07","modified_gmt":"2022-07-08T20:02:07","slug":"4-important-things-out-of-the-box-erp-software-solutions-are-missing","status":"publish","type":"post","link":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/4-important-things-out-of-the-box-erp-software-solutions-are-missing\/","title":{"rendered":"4 Important Things Out of the Box ERP Software Solutions are Missing"},"content":{"rendered":"

\"4<\/p>\n

Written by Lori Lamping, Director of Solutions, Arcoro<\/em><\/p>\n

With an automated Enterprise Relationship Planning (ERP) system<\/a>, businesses can streamline their data between numerous departments through various modules and 3rd party applications in real-time to establish actionable processes which help to improve current and future business outcomes based on empirical, tangible evidence. <\/span>With that said, not all ERP software solutions are built the same.<\/a> They all have their strengths and weaknesses including what functionality they offer, the type of support provided, available integrations at-the-ready and much more.<\/span><\/p>\n

Like with the numerous models of cars and brands available, <\/span>ERP systems come in all shapes and sizes<\/span><\/a> from \u201cout of the box basic\u201d to \u201cThe Rolls-Royce of technology\u201d. Every product has its pros and cons depending on the industry and what they need the most help with. For the purposes of this article, let\u2019s focus on what\u2019s missing from these out of the box <\/span>ERP software solutions<\/span><\/a>.<\/span><\/p>\n
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What are Out of the Box ERP Software Solutions?<\/h2>\n

Out of the box ERP software solutions are basic. Sure, they\u2019ll come with automated workflows to cover finance and accounting<\/a>, manufacturing, supply chain<\/a>, logistics, CRM<\/a> and a few human resources processes, but the caveat is that while processes are improved by automating workflows that impact numerous departments across the company, the technology is simply restrictive, or is lacking the tools to really make it effective.<\/span><\/p>\n

For example, if your HR department is relying on a basic ERP system to address processes within HR Management and Talent Management<\/a>, they will have a hard time running them because most basic ERP solutions don\u2019t include many of the following processes dedicated within HR:<\/span><\/p>\n\n\n\n\n\n\n\n\n
HR Management<\/b><\/td>\nTalent Management<\/b><\/td>\n<\/tr>\n
Core HR \u2013 Employee Self-Service, Workflow Management, Reporting, Electronic Signature, Employee Record Management and Surveys<\/span><\/td>\nRecruiting and Applicant Tracking<\/span><\/td>\n<\/tr>\n
Benefits Management<\/span><\/td>\nOnboarding<\/span><\/td>\n<\/tr>\n
ACA Compliance<\/span><\/td>\nPerformance Management<\/span><\/td>\n<\/tr>\n
Time and Attendance<\/span><\/td>\nLearning Management<\/span><\/td>\n<\/tr>\n
Payroll Processing<\/span><\/td>\nSuccession Planning<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

As the HR department is only one example, many departments within your business will experience the same struggles. If you want focused modules within specific departments of your business to help meet business objectives and goals, then you will need to look into purchasing a whole new system entirely, or look into partnering with third-party providers to integrate cloud-based modules into your current system, designed to scale with you as your requirements change over time.<\/span><\/p>\n

What are Out of the Box ERP Software Solutions are Missing?<\/h2>\n

Most out of the box ERP solutions are designed to accommodate as many businesses as possible. They are created with a very broad toolset, so the company is able to offer their basic technology offering to a lot of interested clients. However, like individuals, all companies are unique and have different needs and requirements to be successful. Many companies who purchase the most basic ERP system end up finding out that they need stronger functionality for specific processes, or they are still missing crucial automated workflows and end up regretting their purchase. <\/span><\/p>\n

Let\u2019s help you avoid \u201cbuyer\u2019s remorse\u201d on your next ERP system purchase by learning more of what out of the box ERP software solutions are missing.<\/span><\/p>\n

Customizability<\/h3>\n

As we mentioned earlier, basic ERP systems are typically built \u201cfor the masses\u201d. They help to cover an array of processes at a high-level for businesses, that also span to cover numerous departments. The system is considered ok at what it does, but it\u2019s not a master of really any process that you might be undertaking. Many businesses find out early, after their purchase, that they need extended, or more specific functionality that their current system just cannot offer. This puts them in a tough spot, because now they begin a new process of searching for new products to purchase which can affect the long-term cost effectiveness of the first ERP system they bought.<\/span><\/p>\n

Long-term cost effectiveness<\/h3>\n

The long-term cost effectiveness factor goes hand-in-hand with customizability like a domino effect. If you bought a basic ERP software solution and it turns out you need a more customized experience to address specific processes, then you will need to spend even more money to address those issues. You will either have to buy another system to coincide with, or by adding individual cloud-based modules to enhance the \u201cbasicness\u201d of your current system.<\/span><\/p>\n

Scalability<\/h3>\n

As your business is constantly evolving, it\u2019s important to find ERP software solutions that can adapt with you as your requirements change. <\/span><\/p>\n

Let\u2019s discuss another example within the HR department. Your basic ERP system may be able to allow administrators to manage timesheets, track basic stages of performance management, possibly perform payroll and other various reporting. However, since the processes within the system itself are restrictive in functionality, an administrator might have hard time performing the following tasks efficiently:<\/span><\/p>\n