As a business scales to serve customers, grow revenue, and increase profits, it will require new tools and technology to get to the next level. To meet new business needs, companies have looked to enterprise resource planning software (ERP) solutions to help connect disparate business applications, automate back-office workflows, and bring greater visibility to operations across the organization.
The most commonly cited reasons for implementing ERP are:
- Building an organization-wide business management system for the first time.
- Replacing an outdated legacy system.
- Projects that require migrating existing on-premise solutions to cloud ERP.
By integrating all business functions into one digital workspace, companies hope to streamline business operations across departments and geographies, improve decision making, and create greater value for themselves and their customers.
However, ERP adoption can be complex and difficult. According to Gartner, ERP initiatives run a risk of failure due to complexity and lack of organizational preparation.
To oversee a successful digital transformation project like an ERP implementation, it’s vital for decision-makers to first determine whether ERP is right for their organization—and then they must decide which ERP is most suitable for their unique business operations.
Is an ERP right for my business?
A successful ERP system automates all core business processes including financial management, supply chain management, customer relationship management, human resources and payroll, and more. By collecting information from across the organization into one system,, it provides real-time business intelligence insights to improve decision making and drive organizational efficiency.
At first glance, this sounds like an ideal way to conduct business for any organization—and it is. However, organizations must be careful to not bite off more than they can chew when it comes to business management software. At the high-end, ERPs provide all-encompassing solutions designed for multinational corporations. At the other, growing businesses can benefit from adopting modular ERP solutions with the ability to build more functionality as business grows.
For example, an accounting-based software with an ecosystem of plug and play applications for different business functions doesn’t require an expensive rollout with extensive employee training, nor are intricate customizations required.