What is ERP?

The right Enterprise Resources Planning (ERP) solution for a dynamic organization is technology that delivers mission-critical data in real time, provides a platform to share knowledge, and simplifies collaboration, while being easy to use and to scale. The right solution helps employees drive the organization toward its goals, and in turn, helps build an even stronger team.

 

 Importance of ERP solutions

Majority of IT executives who had an ERP system agreed that their ERP systems were essential to the core of their businesses, and that they “could not live without them.”

Though there has been recent IT scuttlebutt that ERP systems are now shrugged off as legacy inside 21st-century businesses, most of IT executives disagreed with the statement. They reported that their company would not be able to live without its ERP systems within the next years. For better or worse, ERP systems are here to stay.

 

ERP and business performance

People don’t like to change, and ERP asks them to change how they do their jobs. That is why the value of ERP is so hard to pin down. The software is important, but also, the changes companies make in the ways they do business is important.

If you use ERP to improve the ways your people take orders, manufacture goods, ship them and bill for them, you will see value from the software; otherwise you may not see any value at all.

ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs. ERP combines different modules all together into a single, integrated software system that runs off a single database so that the various departments can more easily share information and communicate with each other.

ERP solution is not only an IT project; we see ERP solution as a comprehensive project for change at the organization. In addition to its direct influences on core business processes, the influences may involve other areas such as the structure of the organization, organizational culture, change management, communication, collaboration, and decision making approach. That comprehensive approach can have an enormous payback, and create real value added to the organization.