What is your Ultimate Goal for your ERP system?
ERP Systems comprise of Function-Components that work with other modules.
The requirements of all businesses change over time and the information required to make knowledgeable decisions is paramount. The knowledge necessary requires information and the data must be collected by your accounting and ERP systems in an efficient and effective way. All firms require accounting systems to keep track of the cash and control the assets of the corporation.
This system usually starts with a shoe box of receipts and a spreadsheet to record them in at the simplest level. This is used by individuals starting a business as it is readily available and very inexpensive. The problem is that as the firm transactions increase, it becomes increasing error prone and difficult to maintain.
The next logical step is to convert the spreadsheet system to an inexpensive dedicated accounting program. There are many of these (the most common are QuickBooks and Simply Accounting) and while effective they are limited in their abilities but user friendly for non-financial personnel. This step allows the firm to track invoices and payables, create standard income statements and balance sheets, and provide some semblance of traceability of the transaction flow. While easy to use they are limited in their capabilities and allow the firm to grow to certain level before they become a burden and slow the processing of transactions, providing limited data extraction and information.
At this point the firm realizes that it needs to change systems in order to obtain and track critical data that is required for management to continue its growth. It is usually at this point that firms begin to look outside for assistance in the selection and implementation of the new system. Best practices and requirements analysis is required to determine the requirements of the new software to ensure that it can track the flow of transactions accurately and effectively.
Data is the facts and nothing but the facts. Statements like “this occurred”, “the item exists”, “the date is”, and “the amount is”, are data points and they feed the source documents and are static once recorded.
Information, on the other hand, requires the processing of the data to gleam information about the facts. This requires processing either electronically or manually to assemble the information. Items like “Customer X is our best customer”; “we buy more of item A than B” are examples of information. Information as a result is not static as the results change based on the data used.
Knowledge is the application of information and data to model and understand the ecosystems we all live in and the use of this to make good decisions and set appropriate strategy.
A good ERP or accounting system will be able to generate the data required to create the information needed. Knowledge can then use this information to make better and more strategic decisions that we all want. All ERP systems generate massive amounts of data that is required but the big trick is to get a system that allows you to create the information required. Systems like Microsoft Dynamics GP allow the firm to accumulate the data and provide tools and facilities to create great information that can be acted upon. This is the ultimate goal of the ERP system.
With over 30 years of experience working with customers in Western Canada, DTM Systems specializes in providing meticulous and practical I.T. solutions for businesses of all sizes and industry. DTM is the only I.T. Service provider in BC that provides expertise in mission critical data, ERP deliverables, consulting, managed services and project management. For more information about our Dynamics GP offerings and our other products, fill out a contact form or email firstname.lastname@example.org and we will get back to you shortly.
For over 18 years, Don has led the way in the Business Solutions division at DTM. In business, his expertise lies in masterminding accounting systems, and in his personal time, it’s the game of golf. He brings his natural synergy to both: analysis, critical path thinking, problem solving and integrity. He fundamentally believes in a level playing field, in equity and the improvement of the whole: a philosophy and practice that continually elevates his game on the course, and at DTM.