Posted On: June 2, 2016
4 Proven Reasons to Implement ERP
Companies at the forefront of innovation are looking to implement ERP to reduce internal costs, improve processes and increase efficiency across the organization.
IT managers will agree that one of the biggest reasons to implement ERP solution is to create a common IT platform across the company. However, the reasons and the benefits must be carefully weighed against, as a project of this scope has significant upfront costs and change management implications that must be accepted by both your managers and your employees.
If your organization is currently about to implement ERP, here are the key reasons to make the move.
1. ERP Solves IT Multi-Platform Issues
Over time, organizations may find themselves running many different software systems across multiple departments. These systems may have been inherited with absorbed companies or pieced together to be able to work with partners and vendors. Yet this lack of conformity can have a detrimental effect on process flow.
Problems arise when systems are incompatible, too expensive to maintain, outdated, and/or are unable to be serviced or upgraded. When it becomes apparent that the systems need improvements, this is when an overhaul of the current IT structure is reviewed, and an ERP solution begins to make business sense.
Syntax develops and implements ERP applications with a focus on JD Edwards solution set. Oracle’s JD Edwards EnterpriseOne provides a comprehensive set of applications that enables customers to aggregate and secure application content within a centralized user interface (UI). This means that software, implementation, and training are pre-configured and all from a single source to keep you in control. This comprehensive set of low-cost, low-risk JD Edwards applications delivers high functionality in accordance with industry best practices.
With a common IT platform in place—the hallmark of an ERP system—IT operational costs are drastically reduced, as they help automate processes, increase productivity, reduce/re-purpose headcount and retire costly legacy systems.
2. ERP Improves Performance in a Down Economy
As forecasts continue to predict flat economic activity in the new year, 2013 will see organization’s IT budgets as compact as they were in 2009 and 2010. However, high growth and medium-sized companies are expected to continue to expand, and they will need to support and nurture this internal growth.
With ERP applications, business activities and company performance can be better monitored and controlled.
According to a 2012 survey of nearly 250 organizations that have implemented an ERP system within the past year, 94 percent of responders said the biggest benefits realized from the implementation included:
- Availability of information
- Faster response times and increased interaction across the organization as a result of streamlining processes
3. Standardizes Business Practices
Disconnects between finance, sales and production caused by multiple software platforms, allow for increased errors and wasted employee time trying to fix problems, or find needed information.
ERP system functionality includes the software pieces for Customer Relationship Management (CRM) and sales automation in order to streamline sales processes and stop work redundancy.
When your sales professionals, product marketing team, customer service personnel and financial groups work on a common sales platform, practices and reporting flow throughout the organization helping to increase employee productivity, and generate higher revenues.
4. Increases and Improves Interaction
ERP systems are shown to increase and improve interaction internally and between customers and suppliers. If your suppliers can also communicate more efficiently with sales, marketing and finance, or even integrate with your ERP system, imagine the increased productivity that can be gained.
Availability of real-time company information to different groups within the company will allow for faster response times and a streamlined workflow.
An organization’s top reasons for implementing an ERP system include:
- Improving internal business processes
- Improving company performance
- Reducing IT expenses and labor costs
- Improving interactions between internal employees and external organizations.
With a functioning ERP in place, your business can solve critical issues that can become detrimental to the organization’s bottom line, if left unchecked.
Since 1972, Syntax has been providing comprehensive technology solutions to businesses of all sizes throughout North America. At Syntax we partner with IBM, Oracle, and other world-class technology leaders to deliver the best combination of hardware, software, and services to our customers.
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