The question I will try to answer in this post is: how long does it take for software investments, and in particular investments into business software, to pay themselves back? And how will this payback happen and how do we know whether an investment in an ERP software system was or will be the right thing to do?
Budget overruns used to be the most common issues during the software projects.
Research data shows that in 2017 over 65% percent of companies exceeded their implementation budget. This percentage was even higher in the previous year at 74%, so while it is an improvement, it is still staggering.
So why does this happen? Why can’t even large companies eliminate the uncertainity when it comes to bugeting? How can you control budget overruns? And are there cases where this should not be considered a problem?
From the moment when we stop managing our jewelry store on paper and start using a system, the question of integrating it with third-party systems becomes unavoidable in order to move data back and forth between those systems and ours.
There are many examples for what platforms your jewelry store or manufacturing management system might need: Rapnet, GIA, QuickBooks, pulling market prices for metals, exchange rates for currency, communicating with your shipping providers, customer relationship management system, your website or other websites like Shopify or Etsy, or different payment gateway integrations.
Implementing a jewelry software (or any other ERP) is a huge undertaking and inevitably comes with a certain degree of risk. For example, a recent study from an independent ERP consulting organization, Panorama Consulting, revealed that 28% of organizations reported their ERP implementation as a complete failure, resulting in an abandoned product.
This is somewhat surprising, as for most companies the risks are manageable if they are known ahead of time. Identifying problems that may arise and addressing them early will certainly help mitigate them before they become a point of failure for your project.
Smaller jewelry businesses usually use different manual tools for tracking their processes: excel sheets, Google sheets, various documents, sometimes even pen and paper. As long as there is not a large amount of data that needs to be copied across these sheets and kept updated, this is fine and is (for the most part) convenient and cost-effective.
The problem arises when there are many people involved in the process or the complexity of the process increases.
Implementing a jewelry software (or any other ERP) is a huge undertaking and inevitably comes with a certain degree of risk.
A recent study from an independent ERP consulting organization, Panorama Consulting, revealed that 26% of the organizations reported their ERP implementation as a failure.
For most, the risks are manageable if they are known ahead of time. Identifying what problems may arise and addressing them early will certainly help mitigate them before they become a point of failure for your project.
Jewelry ERP software vs generic ERP
This article suggests ways to simplify your ERP selection process and points out the differences between jewelry-specific and generic ERP solutions.
As I mentioned in our previous post the jewelry industry was lack of an industry-specific software in the recent past. Those jewelry companies who felt a need implementing some kind of solution to automate some part of their business processes had no other choice than using different systems for inventory tracking, customer tracking or production tracking.
Two major problem they had to face: