Many businesses believe that their ERP system should handle all aspects of their financial operations. While the allure of an all-in-one suite is enticing, the reality is that creating a truly cohesive ERP is a complex and challenging endeavor.
Enter the hub model: an innovative approach that treats the accounting system as the central hub of operations, connecting and accepting data from specialized modules to build a powerful and cohesive financial ecosystem.
What is the hub model?
When your accounting system serves as a hub, data is received from specialized modules for payroll, HR, manufacturing, EDI, credit card processing, and more. The specialized modules act as spokes on a wheel, as they are typically integrated into the accounting system.
Differences from the suite model
The hub model is very different from the suite model, in which businesses expect their ERP to do it all, with the accounting system offering its own suite of modules. The greatest challenge of the suite model is that it depends on the publisher of the ERP system having expertise in all areas of business processes—including those like credit card processing and EDI that aren’t as popular for everyday needs.
The hub model, on the other hand, leverages the strengths of specialized modules that are seamlessly integrated into the accounting system. Each module is purpose-built to excel in its specific function. By allowing these modules to work in harmony with the central accounting system, businesses can create a cohesive ecosystem that best fits their requirements.
Benefits of the hub model
The hub model promotes flexibility and scalability, two qualities that are vital in today’s dynamic business environment. As your business evolves, you can easily integrate new specialized modules to adapt to changing demands, without overhauling your entire ERP.
The hub model also helps ensure data flows seamlessly between your specialized modules and the central accounting system. This integration minimizes the need for manual data entry, reducing the risk of errors and ensuring the accuracy of financial information.
A third benefit of the hub model is that it allows businesses to select from a range of best-of-breed solutions for each module. Rather than compromising on functionality to fit into an all-in-one ERP suite, you can choose the best tools available for each aspect of your financial operations.
Get the support you need
The experienced professionals at ACI Consulting can help you evaluate and implement the latest ERP and financial accounting solutions to help your business optimize payroll operations, save time and resources, and focus on core competencies. Contact us to learn more about our team and all of the services and solutions we offer.