Capex and Opex stands for consistently Capital expenditure and Operating expenses where Capex calculate the major and long term expenses and Opex calculate the day to day expenses of a company. A software could be both as Capex and Opex for the same organization based on price and priority. Same software could be considered as asset (Capex) or regular expenses (Opex).
ERP provides an excellent solution for avoiding this hassle by using automated technology which is called Capex and Opex. Capex and Opex stands for consistently Capital Expenditures and Operating expenses. Capex calculates the major and long term expenses where Opex calculate the day to day expenses of a company. The majority of businesses are now considering how to simply compute Capex and Opex.
ERP solutions are designed to be one-size-fits-all platforms for managing all aspects of a major, frequently globalized economy. ERP is expensive because it is completely customized for your business which requires a significant amount of effort from your company. ERP is expensive because of lots of factors such as License cost, Implementation cost, Consultancy cost, Customization cost, Configuration cost, Maintenance cost/Support, Infrastructure cost and among others.
There are a few factors that determine whether an ERP project succeeds or fails. Poor planning, a lack of consultant or function specialist, a disorganized structure and a variety of other factors can cause ERP failure. Lack of information, research and lack of visibility also leads to ERP deployment failure, as the system is unable to identify errors.
There will be several restrictions in terms of ERP implementation, while working with a limited budget. These limitations might not be good for further scalability. Low budget ERP may cause some crucial limitations such as gap in features, lack of compliance with functional requirements, inexperienced consultants and among others.
In an ideal ERP, all data from all types of software modules could well be stored in a single database. It can help a business achieve its long and short-term objectives while also meeting its criteria. ERP that is accessible and adaptable for a business is said to be ideal ERP. There are various ERPs that are acknowledged as ideal ERPs in the local and international market, however they are not in any chronological sequence.
ERP reduces the use of paperwork which reduces storage space and contributes to the preservation of the environment. Also ERP has the best stock management features which has best control over inventory. This software has the features to automating sales or inventory reports that shows the product availability which makes the better decision for further betterment.
The reality is that clients are either willing or unwilling to place their confidence in the system. With appropriate implementation of an ERP, employees can be more productive and successful in their rules. ERP provides real-time visibility into the inner workings of the operations. ERP solutions can simplify a business and prepare for an efficient and robust feature. ERP software integrates critical company operations into a single system. There are three basic ways by which ERP can adapt any kind of business perfectly.
An ERP can be the right choice for an organization to make sure the effectiveness of decision making. Generally speaking, if management makes the proper choice, time will be saved and resources will be used to their fullest potential. ERP has figured out the finest method for assembling all the resources in a single database so that they can be used effectively. Instead of doing that, ERP enables its user to quickly and easily access any data with the appropriate authorization.
No offense that apparel industry has significant contribution to our national economy while economist says 83% of total export earning of the country came from apparel industry. On the other hand achieving the maximum level of business satisfaction of an apparel industry became more complex due to global competitiveness and continuous trend. According to several studies, lack of digitalization, manual recruitment, sustainability, unskilled workforce, lack of effective production planning, etc with lots of other reasons are figured out as the obstacles for the apparel industry.
To acquire the highest level of productivity from individual personnel an organization does not have any second choice rather than ensuring the sequential and rule driven workflow management. Reducing the unnecessary tasks and utilizing the right individuals at the right time assures the efficient process management while an ERP offers the advanced level of a workflow management.
Based on the case study, more than 15% customization of an ERP is risky for any organization. To meet the business requirements of any organization it's quite common to customize the ERP sometimes. ERP is already a standard business process in the worldwide global market which can be adapted by any type or any size of organization. It's a platform independent and ready system for multidimensional businesses.
Organizations must have to decide the priority of their needs first to understand the demands. Several organizations thought the organizational efficiency would be much better if they chose all the modules at a time but in reality that is not actually. Deciding the number of modules should be related with some core points of an organization as organizational resources, organizations time, organizations priority, area of implementation, organizations budget, and lots of other points included.
Whether or not an ERP can adapt to an organization's business is the biggest concern of today's organizations. On the other hand, experts state that a standard ERP can unquestionably adapt to any form of business. The question that now emerges is: How can an ERP adapt to any sort of business?
The major reason behind TCO calculation is to measure the upfront cost of long term or indirect expenses of an organization especially in case of implementing the new technologies. Without calculating the TCO there is a high chance of having miscalculations in the organization.
A Company that has been operating manually for a long time, here standardizing the business processes is not a simple procedure. The first thing a company needs to do to standardize their business is convert the manual operation into digital. Now the question came here, “How to digitize an organization?”
Statistics shows, 69% of concerned people from the concerned department feel uncomfortable communicating with the employees directly while 37% feel uncomfortable giving their employees performance feedback manually. Here, an ERP offers the amazing functionalities to conduct the recruitment process as well as complete the performance appraisal process consistently through a single system.