The Success of ERP Is Driven By Business Demands
Demands for business success can be significant. This demand drives the business value of ERP systems. There are tough conversations that occur in boardrooms all across the country. ERP Practitioners, business owners, executives, stakeholders, and employees often experience significant organizational challenges due to business growth, business correction, or challenging and changing business environments that place great strain on organizations.
Companies are constantly under great demand to be competitive (often with diminishing resources) in an effort to stay relevant and to maintain a healthy organization. In order to traverse these challenging conditions first requires transformational, innovative, and creative leadership. And then, for an organization to remain healthy, transformational leadership needs to advocate a business environment that supports organizational learning and effective business intelligence. Organizationally supported business intelligence allows the organization to clearly understand its position through accurate and timely data.
Accurate and timely information is one of the most important assets, next to their people, that allows businesses to react quickly and appropriately to ever-changing business conditions. Sometimes remaining competitive and healthy requires significant organizational change. And one of those change agents is Enterprise Resource Planning (ERP) which acts as a tool to drive improvements and to create or maintain a competitive advantage.
ERP Systems transform Organizational Operations
A significant business value of ERP systems is that they have totally transformed modern-day organizations. With an ERP system, data, information, and processes are supported in one system and improve the availability or common operational information and practices throughout the organization.
The primary purpose of ERP and the factor that defines the success of ERP is its ability to allow the sharing and dissemination of information in an efficient way within the organization. ERP success, benefits, and ROI are well documented. Effective use of ERP systems has become a key competitive advantage for organizations and their stakeholders (Blanchard,1998). Organizations implement ERP solutions in an effort to improve business process performance, enforce compliance, improve employee tasks, and to improve integration across company locations (Wamba, Kamdjoug, Akter, & Carillo, 2018).
Ultimately, the business value of ERP systems is their ability to create a seamless integration of business processes within the organization in order to improve workflow and accomplish real-time and accurate information availability (Wozniakowski, Jalowiecki, Zmarzlowski, Nowakowska, 2018). And, with this business intelligence, the organization is better able to clearly understand and react to its current business conditions.
Planning for a New ERP?
Achieving change with culture-readiness is a vital concern of any company’s ERP transformation. Your workforce needs to be on board when changes are made to your corporate structure. Without the cooperation of the entire team, your organization can be thrown into chaos. Nestell & Associates can help with digital transformation consultancy to prepare your staff for the road ahead and ensure a smooth transition as your organization grows.
Related Podcast Episode
Episode 57: ERP Success and Purpose Built Networks
In this episode, we discuss factors that promote ERP organizational change success including Organizational Network Analysis (ONA), efficient collaboration, organizational culture, innovation, and trust, using networks to ensure alignment, collaborative dysfunction, and small shifts in how we connect can have a big impact on organizations, and more with guest Rob Cross!
About Nestell & Associates
Where People, Processes, and Technology Align
Nestell & Associates is a strategy and management firm. We can help you take your portfolio companies to the next level by demonstrating how to execute a scalable, methodical, and disciplined approach to ERP Organizational Change and Digital Transformation success.