BENEFITS OF ERP IMPLEMENTATION FOR BUSINESS
Enterprise Resource Planning (ERP) projects have a great impact on your organization. Even when they are being done effectively, they still consume a lot of effort, time and money. So you should know better ‘why you want to start that project’. It all starts with understanding the benefits and advantages of ERP for your business.
We have seen a lot of “project failures”, mainly due to the lack of “understanding why you really want to go for that project”. What do you really expect to achieve? What are the expected results? Here are some common examples of why companies implement ERP:
- We have to replace our legacy IT systems
- Our competitors have implemented SAP
- We must accompany the latest technology development
- etc ….
Unfortunately, these common drivers for deploying ERP systems significantly increase your chances for a project to fail, or at least a major struggle. They are too general and vague. First of all, they do not provide you with a framework for future decision making in your implementation project. On top of that, they are not strong enough to motivate all stakeholders to join the long journey ahead.
BENEFITS AND ADVANTAGES OF ERP
Based on our experience, we can suggest a few better reasons to implement a new system.
- Expand your organization effectively
- Strengthen customer service and intimacy
- Make better decisions
1. Expand your organization effectively
Developing an organization is very interesting but can be difficult. Many businesses are feeling saturated, unable to grow any more, and these businesses are starting to find solutions for themselves to run better companies. An ERP system can definitely help make enterprise processes more robust and scalable. For organizations that focus on excellence, automating manual processes can certainly drive profit growth.
- Simplify and streamline: Instead of introducing new processes and more process variations, focus should be on limiting the number of processes, process variations, and implementing simpler processes. Although the system has the potential to support any process or process variant, that does not mean it is suitable for businesses. On the contrary, implementing ERP can be a great opportunity to reduce business complexity.
- Standardization: stick as closely as possible to the standard processes already in the ERP. This will allow for more flexibility and improved scalability.
- Business transformation: Is your organization ready for conversion? If your focus is on expanding the size of the organization, you need to be sure to prepare for each functional specialization and avoid combining too many roles / processes performed by the same person. Try to find the right balance, but in most cases, ERP implementation will yield better results if fewer people are involved in the same process. Since then ensure transparency, clarity, avoid fraud in the process.
2. Enhance customer service and intimacy
Communication and business partnerships are becoming the number one priority in today’s business environment. Being able to keep your business partners informed and engaged is the best way to keep them happy and committed.
Modern ERP systems can be deployed to increase customer service and intimacy effectively. Think about sales automation, electronic data exchange, optimization of distribution performance, creation and distribution of documents.
Try to be as specific as possible in determining how you want to increase customer service efficiency and intimacy.
3. Make better decisions, by consolidating information
Better decision making is key if you want to survive in a highly competitive and changing business environment. Being able to make informed decisions is the best way to ensure sustainable growth.
An ERP solution can help you consolidate different data and information stores and reduce manual and replication errors. However, this requires a higher level of organizational and structural discipline, often one of the most overlooked pitfalls.
YOU REALLY NEED TO KNOW WHY YOU IMPLEMENT ERP
There are two main reasons why it is important to know “what you want to achieve and why it is worth it?”
- It provides a framework for effective and effective decision-making.
- It makes the story motivates stakeholders through difficult journey ahead.
Make sure you have a clear and strong vision for what you want to achieve with the project and make it more specific as you move along the project roadmap.