We reveal the secret: Why an ERP implementation at a fixed price works

The early years

The origins of ERP systems date back to the 1960s, when companies began using computers for their business processes. During this time, simple software applications were developed to enable the automation of accounting and inventory management tasks. However, it is important to note that these systems were still a considerable distance from what we would call modern ERP systems today.

The era of MRP

In the 1970s, the first MRP systems emerged, focussing on the management of material requirements and inventories. These systems were extremely helpful for companies to achieve improved control of their material flow and optimise their stock levels more efficiently. The term "ERP" was not yet in use at this time.

The birth of ERP

The 1980s marked a turning point for ERP systems. Companies began to merge various business processes such as accounting, human resources, production and sales into integrated software solutions. This led to the emergence of ERP systems that enabled companies to manage all aspects of their operations more efficiently.

One of the first ERP systems of this time was SAP R/2, which was introduced by SAP in 1979. It was one of the first systems to link various business functions together, marking a significant milestone in the history of ERP development.

The 1990s were characterised by strong growth in the ERP industry. Companies such as Oracle, Microsoft and JD Edwards entered the market and developed more advanced ERP solutions. These systems were characterised by a more user-friendly interface and were able to map a wider range of business processes. This enabled companies to further increase their operational efficiency.

The digital transformation

With the beginning of the 21st century, ERP systems underwent another transformation. Cloud technology took the world of ERP systems by storm. In contrast to the traditional on-site installation, where systems were operated on their own servers in the basement, they are now hosted by external service providers in data centres. This means that companies no longer have to purchase and manage expensive hardware infrastructures to cope with unexpected peak loads. Thanks to the cloud, resources can be easily expanded or reduced as required.

As a result, the user can concentrate fully on using the system and no longer has to worry about provisioning in the background.

In the course of this development, users increasingly prefer to pay only for the resources they actually use. For this reason, most ERP providers offer Software as a Service (SaaS). This means that the customer only acquires usage rights and rents the software. It is possible to flexibly adjust the number of users on a monthly basis. For example, if a user has seasonal business activities, more licences can be rented during the Christmas period and the number reduced again in January.

The digital transformation has further changed the ERP landscape. Artificial intelligence (AI) and the Internet of Things (IoT) are being integrated into ERP systems to enable automated processes and data-driven decisions. This makes it possible to carry out automatic updates, making expensive update projects a thing of the past.

These developments have opened the door for a completely new approach to software implementation. In the past, the customer's processes were recorded in extensive workshops during implementation and the standard software was customised through individual programming. This approach is still suitable for companies that have very complex processes and require a customised software solution.

However, there are also companies that want to tie up as few resources as possible during implementation, either financially or in terms of employees required for day-to-day business.

Many of us are familiar with the principle of smartphones. We see an app that piques our interest, download it from the app store and can use it immediately. Why shouldn't this also apply to ERP software?

You don't want to have to deal with the technical aspects such as deployment, performance or updates in the background. That's why we at NAVAX have developed the "easyStarter" approach. This is the secret behind a fast ERP system implementation. With this approach, it is possible to implement ERP software within 30 days at a fixed price. In contrast to conventional projects, where the process is developed during implementation, the "easyStarter" approach offers clear best practices and proven solutions right from the start.

This is where the business principle of diminishing marginal utility comes into play. This concept states that the benefit gained from additional effort decreases over time. A project often requires considerable effort in order to achieve a high benefit. In this case, this means that most companies will be fine if 80% of their business processes are mapped in the software. For the remaining 20%, the resources required would no longer be in proportion to the benefits.

A best-practice approach, on the other hand, concentrates on the essentials and offers proven solutions with minimum effort and maximum benefit.

What does this mean in detail?

Based on its experience from numerous projects, the software provider has already developed a solution in which 80% of industry-specific processes are integrated.

Tip for your software implementation: Always ask your potential supplier about their experience in your industry. A qualified ERP provider will specialise in specific industries. After all, you don't want to have to explain your operational processes to them in detail before you can implement the software quickly, do you?

The "easyStarter" implementation automates many of the steps involved in setting up an ERP system. On the one hand, the customised database is automatically provided in the background. In addition, we offer preconfigured data packages in which all important settings such as chart of accounts or VAT rates are already entered in the corresponding tables. This means that the software is ready for immediate use. Rapid implementation saves time and resources. We also offer training packages for common processes in your industry.

But let's be honest: even if the training materials are excellent, sometimes you accidentally press the wrong button and get stuck. That's why we offer consultation hours with highly qualified consultants during the go-live process who can help you quickly.

After a successful initial launch, the software can of course evolve. For example, if you add a new business segment or require additional customised functions, nothing stands in the way.