What are advantages of ERP for service industries?
Services industries use ERP software to become the most efficient they can be leveraging one source of truth. Universally, services businesses reap a number of benefits—the most important of which can determine the success or failure of your business.
Just like in the consulting world, excellent resource forecasting has a significant impact for technology firms to wield a workforce with sufficient expertise. Otherwise, low margins and failure to thrive long-term can result.
But as tech companies frequently deal with software or systems that are critical to their clients’ success, there is high risk involved. As such, more stringent time planning and quality assurance safeguards are needed.
Get real-time project accounting
You need continuous insights into the money side of your business. And they need to be calculated automatically for you.
If you’re hashing out your project budgets and margins on a calculator, you’ll miss critical moments to get in front of problems that crash your project in terms of profitability.
Avoid these pricing pitfalls
Whilst discounts on multi-year deals seem attractive, bear in mind that your business can likely change during that time and your requirements will change with it.
Many vendors provide software “Editions” with increasing levels of functionality provided at ever-increasing cost. The upside: you can “start small.”
In reality, you are likely to hit a feature wall quickly and upgrades are unavoidable. Note that in almost all cases, these increased prices apply to your entire user population, regardless of whether they all need these additional features.
#3: Services spiral
Traditional ERP vendors thrive on services. Anything is possible, it just requires “some work” from specialists to tweak the product to your needs.
Sounds good in principle, however chances are—looking back after some time—that you will have spent more than you had planned on external expertise. All the while becoming increasingly dependent on others for the future of your business.