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Custom ERP Software Development: Is It Worth It?

Most business organizations today are quickly adopting the use of custom ERP software solutions because as opposed to the common use of manual procedures and legacy applications, ERP programs are cost-effective and efficient. The Enterprise Resource Planning program is a system of integrated applications that are designed to automate different department/office operations (product planning, development, manufacturing, sales and marketing) to a single database.Nevertheless, not all ERP software will meet to every requirement of your organization. Therefore, when deciding on the ERP software to adopt, you need to choose the most reliable one as far as your business needs and processes are concerned. In turn, here are the two types of ERP systems:Off-the-shelfThese are systems easy to implement due to the fact that they are developed out of the experience of other organizations (user groups) other than yours. From the discussions on how each of those companies’ best use the system, you acquire information on how best to adopt the system for your business.Custom ERP softwareWith custom ERP, the system is developed based on your company’s experience. A programmer gets to design the ERP system in accordance what exactly you want the software to be able to do and ideally, the process it should follow in order to do perform and facilitate your operations.WY COMPANIES CHOOSE CUSTOM ERP SOFTWARE
There is a greater chance of a company meeting its user requirements when it goes for custom-built ERP software other than a generic system solution. This is so despite the high upfront costs and time consumption to get the system started. You can always start small and add the essential layers as you go by and in the end meet, the target software for your business. Plus, it is also a way to spreading the initial expenses throughout.Custom ERP software is also designed to fit your business processes instead of the business fitting into it, this is somehow relieving since as far as training of the company’s staff is concerned, there will be less of it. All they have to do is make little adjustments to coordinate with the system.A good example of such approach is Tesla, who carefully evaluated all pros, cons, and risks and decided to build custom ERP solution having above mentioned benefits in mind. Tesla CIO Jay Vijayan calculated the costs of SAP implementation in “millions of dollars” and a year to perform all the required integrations. Tesla managed to achieve same functionality within 4 month and much lower budget with custom built ERP. As the result, they’ve got independence from third-party vendor and Enterprise Resource Planning System that is tailor-made for their established internal business and manufacturing processes.HOW MUCH IT WOULD COST TO BUILD CUSTOM ERP SOFTWARE
It is obvious that the cost of custom ERP software development would depend on what you require, the number users and its complexity. For instance, if you are going for a sophisticated custom ERP system, you might not find complete designs that fulfill your needs. Therefore, you will have to incur extra cost for complimentary products to ensure the software fully functions.Nevertheless, the general cost of the ERP system will range between $25k to 75k. The extra incurring costs for future modules or top-up services and tools would go for $5k to 25k.RISKS OF DEVELOPING CUSTOM ERP SOFTWARE
The solutions and services that custom ERP software development is meant to provide, is usually not in box therefore, it requires a lot of time and finances to initialize the design resulting to high upfront fee.Since development of a custom ERP software is on basis of your requirements, to get a high-quality system that maneuvers around future changes easily despite it being a first-time project, you require a developer with experience. Such resources are hard to come by as you are outsourcing.In addition, your contact with the developer who initialed the system needs to be consistent. This is because they would understand the system better during the development cycle: design, testing, QA/ testing, and training. This may be hard to do especially if the developer is not reliable.Despite that, custom ERP software helps to save an enormous amount of money in long-term perspective. You may ask how is that possible. Each company counts on continued growth, including the number of employees, field force, and offices. In many cases, a bigger number of users means the continually growing expenses for the licensed ERP solution. Enterprise support packages are often sold as extra services and are way more expensive than support from the custom software development provider whose support is often included in the contract. Also, it is worth to mention that your organization will be the only one supported for the product which means better and faster communication.So, the expenses for the existing user licenses, new licenses, and support of the off-the-shelf solution is growing exponentially and completely overlap custom ERP software development costs in a couple of years. In its turn, custom ERP software will justify its high upfront costs, because your enterprise won’t be locked to the provider, will own the solution and all the data stored in the cloud as the result, and won’t pay for licenses when new user accounts will be needed.CUSTOM ERP SOLUTIONS EXAMPLES IN DIFFERENT INDUSTRIES
From the advantages of the existence of a software that can meet your business requirements and solutions, most companies have been seen heading to custom ERP system development for the management of their operations. Below are a few of such companies:Oil and Gas Companies
Oil and gas companies have a great plus with custom ERP software development but, it is usually a tragedy if the system does not support the operations efficiently. Therefore, when going for a tailored system for such a massive company more considerations are put in place other than the obvious; meeting the user needs.Custom ERP software for gas and oil companies should most importantly have applications to handling the environment safety. Energy companies are known to be hazardous to their environment and if not taken care of it would cause damage and to some extent shutting down of the organization. Therefore, the system should be able to provide data to the technicians as warnings in case of any threat so that they can mitigate the risks.Also, other than facilitating the operations of the company, a custom ERP software development should be able to open up opportunities for high profit returns investments for the business. That is, it should have a cost management application too.Finally, oil and gas fields are known to be really massive and some are usually in dense remote areas but since it’s business, every asset should be accounted for. In turn, a custom ERP software with good networking is essential to integrating and managing all the company’s operations regardless of the location. Such location difficulties are curbed with high-tech optimization tools to managing all labor and resources throughout.Manufacturing companies
With manufacturing firms, custom ERP system are saviors when it comes to saving costs, eliminating office paperwork, tracking business performance and improving customer experience. This is made possible by integrated custom applications platforms for management of its operations.Nevertheless, managing a national or to some extent international business operations can be a challenging task. A centralized custom ERP software can however, bring light to all your businesses processes as it enables management of creation of product, marketing and availing of the product across all the decentralized outlets. In addition, it integrates all that data thus incorporating workflow and control automatically.Education (schools)
Schools that are going for complete computerization of their functions and processes have custom ERP system development to opt for. A great number of schools have been seen heading to this direction with use of highly tailor-made programs to handle the school management and they are known to be very successful.Whether it is nursery/ kindergarten, high school or colleges, custom ERP systems have proven to provide efficient management of the institutions.WHAT ADVANTAGES WILL YOU GET IF DECIDE TO DEVELOP CUSTOM ERP
A custom ERP software is more of a prototype system whereby you can start designing the most basic and important features and function that you have in mind then later, during testing and maintenance, you can add other essentials bringing you to a very efficient software.

With a custom-tailored system, you are likely to achieve the solutions or attain the services you are going for from a software seamlessly.

The staff is usually at an advantage of comprehending how the system works easily because it was designed in accordance to the business practices and language. In turn they have little to adjust on their side.

Custom ERP systems are usually flexible in terms of future technological or even business changes. There is always a capacity for incorporating any developing trends.

Unlike the offshore system, you get to own the custom ERP system and its design is made specifically to meet your needs. Therefore, you need not to wait for feature requests and enhancements as you are in complete control of the system.
In summary, the basic things you need in hand while planning to adopt custom ERP system is you have to budget for high upfront fees. You will require a team of tech-experts from programmers, quality controllers, database engineers to designers and probably more. Then there is patience needed too, developing software that uniquely fits your business, just like Rome cannot be built in a day. It will require a lot of work which will consume time months or even year.In addition, you need to be fully aware of the company you have set your eyes on to work with because that would be a tragic decision as well as a blessing even before you start. The expertise, as well as a software development company’s stability, is very essential to check while assessing them. Have they done this before? Do they understand your business needs? Are the type of questions you should have answered before moving forward with them.

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How To Pay Off Your Mortgage In 5 Years

My wife and I were “home buyers” for at least 7 years on our current residence. Notice that I said home “buyers,” and not home “owners.” There is a common misconception that when you take out a mortgage, you are immediately a home “owner”

Assuming that you have a 30 year mortgage, the reality is that you are simply in the process of buying the home over a 30 year period. The bank, is the true owner of the property. If you don’t believe me, try missing a few mortgage payments, and see what happens.

3 months ago, we paid off our 30 year mortgage (in 7 years, or 23 years early). Now we are true home “owners.” In this article, I’m going to show you step by step how we were able to accomplish this. Using our existing income, and without incurring any additional debt.

Equity

Let’s talk about “Equity.” Equity, or appreciation, is the difference between what your home is worth and what you owe to the bank. So if you owe $100,000 and your house is worth $300,000, then you have $200,000 of Equity in your home.

We had roughly $250,000 of Equity on our house. We owed the bank $115,000 and our house was worth $367,000.

This $250,000 is dormant. Meaning, it looks good, but it wasn’t doing anything for us.

Home-Equity Line of Credit (HELOC)

So the first thing that we did was we ‘tapped’ into this equity. We went to the bank and took out an Home Equity Line of Credit for $50,000.

What is an equity line of credit? Also called a HELOC, an home equity line of credit is a liquid line that you are able to draw funds from at any time for any purpose. It’s like a gigantic credit card.

Although the HELOC had a limit for $50,000, the amount that we owed on it was $0 at the time that we took it out. This is because, similar to a credit card, you don’t owe anything until you actually use it.

Use HELOC to Pay Down Mortgage

Immediately after we got the HELOC, we withdrew $20,000 and applied it to our Mortgage (additional principal payment).

So at this point, we have $20,000 due on the HELOC, but our mortgage has been paid down by $20,000 (from $115,000 to $95,000).

Use HELOC as “new” Checking Account

Before I go on, let me mention that after we used the $20,000 to pay down our mortgage, we still had the same $115,000 of debt ($20,000 on HELOC and $95,000 on Mortgage).

So to payoff the HELOC, we just used it as our new checking account. When we got paid, we took 100% of our paychecks and applied it to the HELOC.

Now you may be wondering, “with all of our money going to the HELOC, how did we pay our bills?” Remember the HELOC is a “liquid” line. So at the end of each month, we made 1 withdrawal from the HELOC to pay our bills (including our mortgage).

100% of Cash Flow

For us, our monthly paychecks totaled roughly $6,000. Our bills, including our mortgage, and all of our living expenses (gas, groceries, etc.) totaled approximately $3,500. So by applying 100% of our monthly checks to the HELOC, and then using the HELOC to pay our bills, we were able to use 100% of our monthly cash flow to pay the $20,000 HELOC off.

So with and estimated $2,500 of cash flow ($6,000 minus $3,500) the $20,000 was paid off in 8 months.

Repeat The Process

We repeated this process until the remaining $95,000 was paid off (approximately 2 years).

What Do You Need?

1. Cash Flow – You must have positive cash flow in your household budget

2. Credit Score – A decent credit score (650 or above)

3. Equity – Positive equity in your home.

What You Should Know

VERY IMPORTANT: The HELOC should be used to paydown your mortgage. It should not be used to fund a vacation, buy a car, or a boat.

ALSO IMPORTANT: The HELOC is not a Home Equity Loan (HEL). A Home Equity Loan is a 2nd mortgage, and it is treated the same.

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Business Advertisement

Business advertisement brings profits in sales. The key goal of such advertising is to convince the potential buyers to purchase manufactured goods and services. There are various avenues through which the customers get information about the true marketable products and services. These are television, radio, newspaper, magazine and recently online advertisement. The truly marketable product brand has now brought forth a novel integrated tactic that proves rewarding. The maintaining and cultivating the strategy by using the right tools at the right moment and in the right place is extremely necessary. The actual aim of the advertisement is to make people aware of products and services accessible under the brand name rather than selling the product.Significance of AdvertisementProduct publishing plays an important role in creating brand awareness among the general public. The potential buyers are persuaded to reach out for the products. In addition, the satisfied buyers make verbal publicity among the neighbors, friends and relatives. This leads to the increase of profits of companies by increasing its revenue. The expenses of advertisement in turn get good height in earnings. The popular modes of publishing goods and services are newspapers, pamphlets, brochures, magazines, journals and books.Advertising in print media is comparatively cheaper than availing through electronic media. By using this, one can cover a wide range of audiences belong to different age groups. For example, if a brand name is advertised on television the brand would get access to every home and offices, and also in other public places. With time, advertising on the internet is getting more popular. The internet is the most workable platform available till date not only in case of an advertisement, but in case of sharing new and creating universal awareness by sending them to every corner of the world.What Advertising Agencies Do?Many of the firms advertise their products to the potential buyers through their own advertising department. But, others depend upon some advertising agencies for promoting their brands and services. Organizations pay to these agencies for promoting their brand name. They are always there for recommending, and making the most of your advertisement costs of promoting your brand name on the right place.Advertising, therefore, is proper promotion of the products, not selling of items. It helps to give proper information about the brand. On the other hand, it facilitates general people know about the products and to buy the advertised brands more consciously. So, advertising is the link between company and their customers. Advertising not only gives the proper awareness of the products but also offers a nice introduction of the company. Attractive advertisements create demand in the public mind that in turn boost sales of the brand.Online AdvertisingOnline publishing of products and services promote the products in the best way as it is not limited by time and space. The different kinds of advertising sites are available for promoting products. We can select them based on our needs. The different kinds of methods available are Pay Per Click, banner ads, text ads, intext adds, link ads, flash ads, slider adds, hovering adds, pop up ads, pop in to add etc. You can take up as per wish. Online advertising is very specific to the audience. The advertisers use keywords or phrases in their online ads that are employed by the potential buyers in order to search for the products and services. More is, the online ads are region specific also. Banner advertising is a popular form of online advertising. Advertiser can advertise their banner by coming to an arrangement with online companies and publish their banner. It is more cost effective than other forms of advertising. There is just one time start up cost of creating a website. There are no associated costs like postage, storage, repeated design fee etc.A study by Google confirms that nearly 30% of internet-users read newspaper and they are likely to go online to research at least one product that they find in a newspaper. Internet advertising when combine with newspaper advertising can help advertisers to reach to targeted audiences. Whatever may be the media, without advertisement, business owners experience a much harder time to orient the business field in their support.

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