- Improved economic conditions for companies.
- Improved liquidity.
- Better Financial and Business Reporting and there by better decision making.
- Reduced duplication of data and business processes.
- Improved interdepartmental and intradepartmental communication.
ERP – How they are expected to evolve?
A significant growth in ERP market was exhibited after the financial downtime of 2008. Firms requires higher ROI and Systems that are quicker and easier to setup and integrate.
It is vital important to see the impact of ERP on abidance with industry and government regulations, Mobile technologies and with newer Hi performance computing Platforms such as Clouds, will affect plans for ERP deployments in future.
What barriers exists for ERP?
- Budget constraints.
- Lack of Shareholder Interest.
- Lack of time available for implementation.
- Staff training issues.
- Customization concerns.
- Database issues.
- Employee feeling of Resistance for change.
- Disaster recovery concerns.
ERP, Detailed long term benefits
- Better financial reporting.
- Better Cash flow and liquidity leading to a reduction in customer debts.
- Better cash flow management across the organizations global infrastructure by enabling them to establish individual payment centers.
- Financial benefits could be realized in certain ways.
- Make savings in departmental budgets.
- Enabling to compare cost savings with revenue gains, so better decision making when setting targets.
- Enables to identify non-productive areas of business so that staff transfer can be done accordingly in order to improve non-productive areas..
- Enables to determine future trends based on past data so that sufficient inventories could be maintained accordingly.
- Risk analysis made easier. As a result backups and recovery techniques for an upcoming crisis could be pre-planned sophisticatedly.
- Enables to speed up monthly close process. As a result management information and analysis is made sooner so that any mitigation strategies can be taken in advance if deviations were detected with established baselines.
5. Improved Management Information Statistics
Information is integrated and available as a whole in a meaningful format rather than duplicated versions of true information. There for improved availability of information. This is a one single significant benefit.
Business Intelligence System is another key component of an ERP which help executives in their strategic plans as well as for daily operational business by in cooperating data searches, KPI dashboards, reporting and data mining. As a result, collaboration enabled among key decision makers by ERP allows resources to be synchronized with strategic plans which leads to significant impact on organization’s long term existence within its market with a higher market share and revenues.
A New route to ERP
Firms are willing to further upgrade their existing ERP system by adding further components such as CRM, HRM etc. And those that have not yet taken the challenge are starting to see the advantages of others who have taken the plunge.
In addition, firms are expressing their interest in extending their ERP systems to support mobile devices. The mobile market is continually leveraging itself with smart phones leading the way Mobile ERP is becoming a non-negotiable requirement in a distributed organization.
ERP on the Cloud
Despite its possible security and privacy risks, greater flexibility in deployment is one of the reasons that the SME sector is responding positively to Cloud ERP. The abrasive economic Climate of the last couple of years has made organizations to establish themselves as risk avoiders rather than risk seekers. They have to make sure that tightly restricted budgets of projects are not exceeded. Therefore risk and the cost of the traditional all-or-nothing ERP deployment is no longer an acceptable option.
The Cloud allows no longer having to worry about constant server updates and other computing issues. Organizations will be free to concentrate on innovation. Employees can access information wherever they are, rather than having to remain at their desks, ensuring more Mobility and Flexibility. Further it allows for unlimited scalability, in contrast to the traditional rigid, customer-owned private computer systems. Organizations are safeguarded from their full IT infrastructure because the Cloud’s inherent scalability integrates disaster recovery capabilities.
Social ERP ( Moving towards 360 Degree view of Customer data across the Enterprise)
By the term Social ERP seems almost silly. However it doesn’t seems really as it is. It is a concept of granting a value towards employees, customers, and other shareholders voices for organizations’ successful product or process quality and long term existence within its industry.
Social CRM is already established, allowing organizations to furnish social media conversations and relationships with customers. Social ERP is the next step in the integration of social media into business organizations, with the prospect to extend social customer data throughout the supply chain. Although there are raising concerns about privacy, it is becoming non-negotiable requirement when establishing long term customer relationship and loyalty.