Service ERP
A service ERP is an enterprise resource planning system designed for companies that sell services. Where traditional ERP was often built for manufacturing, a service ERP is organized around projects, employee capacity, services and billing rather than material flows and production, so that services can be planned, managed and invoiced in one system.
What does a service ERP include?
Project management, resource planning that assigns people to projects and tasks, time tracking, project controlling of costs, budgets and progress, billing based on services, hours or project agreements, and a connection to accounting. Together these give one overview of projects, resources and the financial development of the company.
How does a service ERP differ from a traditional ERP?
Traditional ERP grew out of manufacturing, with production, warehousing and supply chains at the center. A service ERP puts projects in place of production processes, employee capacity in place of material flows, service billing in place of goods logistics, and project profitability in place of production costs.
Which companies use a service ERP?
Companies whose value creation consists mainly of services: management consultancies, IT service providers, engineering and planning offices, software and implementation companies, and marketing and digital agencies. In all of them, project planning, resource utilization, time tracking and billing are central to running the business.
What does a service ERP contribute in project business?
It brings projects, resources and financial figures together in one place. That supports the planning of project capacity, the control of project budgets, the analysis of project profitability and forecasts for revenue and utilization, so that decisions about running projects rest on one consistent set of figures.
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