ERP value is driven by significant business demands
Demands for business success can be significant. This demand drives ERP value. 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, the 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 their position through accurate and timely data.
ERP: A tool that drives continuous improvement
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, or ERP, systems that act as a tool to drive improvements and to create or maintain a competitive advantage.
The value of ERP
ERP solutions have totally transformed modern-day organizations. With an ERP system, data, information, and process are supported in one system and improve the availability or common operational information and practices throughout the organization. The primary purpose of ERP is to allow the sharing and dissemination of information in an efficient way within the organization. The benefits, and ROI, of ERP, 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, ERP creates 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 their current business conditions.
Interesting article for more on ERP value, Berić, D., et al. (2018). “Evolution of ERP Systems in SMEs–Past Research, Present Findings, and Future Directions.”: https://www.researchgate.net/profile/Teodora_Lolic/publication/328981350_Evolution_of_ERP_Systems_in_SMEs_-_Past_Research_Present_Findings_and_Future_Directions/links/5bee906da6fdcc3a8dda169d/Evolution-of-ERP-Systems-in-SMEs-Past-Research-Present-Findings-and-Future-Directions.pdf
About Nestell & Associates: https://nestellassociates.com/about-us/