Just a few more words on ERP...
I like to emphasize that despite the major initial investment, ERPs are not just for big corporates. Small businesses and start ups can benefit more than they realize.
ERPs have been developed acording to the needs of different companies with same needs and possibly within the same industry.
For startups for example, in particular where experience is limited, some of the features of the system can actually make the entrepreneur realize some opportunities or 'know hows' which otherwise could remain unknown. Or even worse, could become known after making a big mistake.
On the other hand, there will be more transparency of business processes within the same industry which in some case could be viewed as decreasing a competitive advantage if it relates to a particular feature of the system.
However, the main problems in many cases arise, when copmanies do not carry out sufficient research before implementing ERP and this is when businesses would be forced to adapt to ERP more than they would desire.
Friday 18 June 2010
ERP for SMEs
After the class discussions about ERP, I have realized that I am not that unfamiliar with ERP. In fact I am very much familiar with it as I actually implemented an ERP system myself without knowing that it was called 'ERP'. This was in a health providing enterprise 6years ago.
A process of hell which will never ever be forgotten...but happy ending 100%!
Being too ambitious (my own interpretation) or too crazy (as I often have been called by my friends who have married wealthy guys and are enjoying a stress free life (so they think) I had just entered an industry very different to the one I was working in.
I was previously working in a fashion company and I had recently been offered a great position in Hong Kong. At the same time, I had the opportunity to build a dental practice from the ground and this is what I chose to do.
Perhaps if I had moved to Hong Kong, I would have learned about the name ERP by being just another part of the system, but I may not have had the 'pleasure' of going through each and every step of sourcing, choosing and implementing it myself.
Long story short... The business I am referring to was an unsuccessful dental practice which was hardly making any profit. Patients had moved to other practices and the remaining staff were all very demotivated.
Beside the initial investment in the 'appearance' of the practice a great investment was necessary to get the practice back on its feet! ERP!
I had to find a way to get the old patients back to the practice as well as acquiring new ones. For this, I needed to know more about the 'lost' patients and how to improve efficiently in the practice. I NEEDED to have the information on my screen and not on outdated paper lying here and there.
I will not get into the detail of the marketing strategies in this blog but will instead briefly illustrate how the implementation of the ERP can benefit (or is a MUST HAVE tool) even in a small business.
The implementation of the ERP system in the practice was to improve inefficiencies within several areas in the business. The most important one being patient records:
Patient records:
Everyday the receptionists had to find all the paper based patient cards for each individual dentist and hygienists in the practice for the following day's appointments. (Often, these records were misplaced and impossible to find) Also, if any patient information was needed for referral etc, the handwritten paper record had to be examined for previous treatment etc.
(This was too often impossible as health professionals forgo a course in bad handwriting skills as part of their degree!!!)
ERP solution: All records were moved to the system and we we never lost a record ever again. Everything was also typed so no more nightmare to read the records.
X-rays;
Sometimes special notes, x-rays etc would be misplaced in the file of a wrong patient. Meaning that you could see a 14 year old patient and looking at an xray of a teethless mouth which possibly belonged to her 80 year old granny.
ERP solution: All x-rays were taken digitally and would only be taken if the patient's record was open on the screen. Also all related letters/referrals would be made from the patients record directly.
Inventory control:
Often drugs and other important tools was being ordered when it was completely out of stock as it was a very time consuming process. (Big problem in a dental practice)
ERP solution: This was controlled and ordered automatically by our system which was linked to our main supplier who used a system that worked with ours.
Payment from the Dental Board;
A paper form for every single patient had to be filled out and sent to the Dental Board for payment. Papers were often lost, payments were delayed and many mistakes would be made.
ERP solution: The patient database of the practices was all connected to the Dental Board and as soon as a treatment was 'clicked' completed it would go under a list and would be waiting for 'send and receive' click.
Lab work:
Lab works necessary for a treatment would not be ready wehn needed and patient had to be re-booked.
ERP Solution: A reminder would pop up to change appointment if labwork was not ready a day before.
Booking:
Sometimes patiet would be double booked by mistake, or long time on the phone was wasted to book the patient in a partner practice.
ERP solution: Double booking was not possible. (Had to be authorized) Also , the system would allow any practice to book patient in a partner practice.
Employees:
Very time consuming to coordinate dentist work load with dental nurses and hygienist.
ERP solution: This was almost done outomatically
Communication;
A manual 'paper based system' was keeping a record of the patients that were due to come in for a check up and letters were being sent every day to remind these patients. However, no checks could be made as to whether the patient came or not and since patients record was only taken out when patient actually booked an appointment. As a result, the patient could be forgotten for years or completely and for ever.
ERP solution: Patients were booked in advance and letters were sent out automatically. The system would remind the administer if a patient had not responded.
(A step ahead would be to implement SMS reminder which would work more efficiently and save paper and postage)
Marketing:
Patient preference/treatment was not seen as a marketing opportunity before.
ERP solution: By the data which could be extracted from the system, patients could be analyzed according to their geographical location/age/income/family.
This knowledge and information could then be used to implement more sophisticated marketing and to target existing patients as well as new clients with similar patterns.
The result was amazing and the practice grew much greater than initially anticipated. Despite the absolute HELL and sleepless nights I went through in first 6 months, and the occasional technical problems which would result in canceling all patients until the technical problem was solved, it was truly worth it. I cannot even begin to imagine how a similar business can function without a system in place.
A process of hell which will never ever be forgotten...but happy ending 100%!
Being too ambitious (my own interpretation) or too crazy (as I often have been called by my friends who have married wealthy guys and are enjoying a stress free life (so they think) I had just entered an industry very different to the one I was working in.
I was previously working in a fashion company and I had recently been offered a great position in Hong Kong. At the same time, I had the opportunity to build a dental practice from the ground and this is what I chose to do.
Perhaps if I had moved to Hong Kong, I would have learned about the name ERP by being just another part of the system, but I may not have had the 'pleasure' of going through each and every step of sourcing, choosing and implementing it myself.
Long story short... The business I am referring to was an unsuccessful dental practice which was hardly making any profit. Patients had moved to other practices and the remaining staff were all very demotivated.
Beside the initial investment in the 'appearance' of the practice a great investment was necessary to get the practice back on its feet! ERP!
I had to find a way to get the old patients back to the practice as well as acquiring new ones. For this, I needed to know more about the 'lost' patients and how to improve efficiently in the practice. I NEEDED to have the information on my screen and not on outdated paper lying here and there.
I will not get into the detail of the marketing strategies in this blog but will instead briefly illustrate how the implementation of the ERP can benefit (or is a MUST HAVE tool) even in a small business.
The implementation of the ERP system in the practice was to improve inefficiencies within several areas in the business. The most important one being patient records:
Patient records:
Everyday the receptionists had to find all the paper based patient cards for each individual dentist and hygienists in the practice for the following day's appointments. (Often, these records were misplaced and impossible to find) Also, if any patient information was needed for referral etc, the handwritten paper record had to be examined for previous treatment etc.
(This was too often impossible as health professionals forgo a course in bad handwriting skills as part of their degree!!!)
ERP solution: All records were moved to the system and we we never lost a record ever again. Everything was also typed so no more nightmare to read the records.
X-rays;
Sometimes special notes, x-rays etc would be misplaced in the file of a wrong patient. Meaning that you could see a 14 year old patient and looking at an xray of a teethless mouth which possibly belonged to her 80 year old granny.
ERP solution: All x-rays were taken digitally and would only be taken if the patient's record was open on the screen. Also all related letters/referrals would be made from the patients record directly.
Inventory control:
Often drugs and other important tools was being ordered when it was completely out of stock as it was a very time consuming process. (Big problem in a dental practice)
ERP solution: This was controlled and ordered automatically by our system which was linked to our main supplier who used a system that worked with ours.
Payment from the Dental Board;
A paper form for every single patient had to be filled out and sent to the Dental Board for payment. Papers were often lost, payments were delayed and many mistakes would be made.
ERP solution: The patient database of the practices was all connected to the Dental Board and as soon as a treatment was 'clicked' completed it would go under a list and would be waiting for 'send and receive' click.
Lab work:
Lab works necessary for a treatment would not be ready wehn needed and patient had to be re-booked.
ERP Solution: A reminder would pop up to change appointment if labwork was not ready a day before.
Booking:
Sometimes patiet would be double booked by mistake, or long time on the phone was wasted to book the patient in a partner practice.
ERP solution: Double booking was not possible. (Had to be authorized) Also , the system would allow any practice to book patient in a partner practice.
Employees:
Very time consuming to coordinate dentist work load with dental nurses and hygienist.
ERP solution: This was almost done outomatically
Communication;
A manual 'paper based system' was keeping a record of the patients that were due to come in for a check up and letters were being sent every day to remind these patients. However, no checks could be made as to whether the patient came or not and since patients record was only taken out when patient actually booked an appointment. As a result, the patient could be forgotten for years or completely and for ever.
ERP solution: Patients were booked in advance and letters were sent out automatically. The system would remind the administer if a patient had not responded.
(A step ahead would be to implement SMS reminder which would work more efficiently and save paper and postage)
Marketing:
Patient preference/treatment was not seen as a marketing opportunity before.
ERP solution: By the data which could be extracted from the system, patients could be analyzed according to their geographical location/age/income/family.
This knowledge and information could then be used to implement more sophisticated marketing and to target existing patients as well as new clients with similar patterns.
The result was amazing and the practice grew much greater than initially anticipated. Despite the absolute HELL and sleepless nights I went through in first 6 months, and the occasional technical problems which would result in canceling all patients until the technical problem was solved, it was truly worth it. I cannot even begin to imagine how a similar business can function without a system in place.
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