The main purpose of ERP system is to improve productivity, and to enable easy communication with clients and partners. There are many organizations that got increased ROI after ERP implementation and there are many organizations that do not find the software was helpful.
It is very important for organization to set up priorities before software implementation.
1. The software should be available in the needed budget.
2. It should provide features to meet the present and future requirements of the organization.
3. It should be able to support the number of users.
4. It should be secure and reliable.
5. It should have the features to enable easy data transfer and to be integrated to applications previously owned by the organization.
Some of the top reasons for ERP implementation are -
To increase productivity cycles, integration of systems and flexibility: Integrated business software can enable the departments to work efficiency and on timely manner, which will help the organization to improve production cycles and to improve efficiency across the enterprise. The software helps in management of work processes and to get easy view of the work flow.
To enable new business to grow: A growing organization finds it easy to handle a number of tasks efficiently through ERP software. The business processes can be integrated and the understanding of complete work flow enables the organization to remove loopholes in functioning. The internet and wireless systems helps the organization to easily market their products and also to stay in touch with customer and business partners.
Reduce expense on business processes: The enterprise system enables the organization to improve work efficiency and to easily maintain the inventory which reduces wasteful expenses on stock. It enables scheduling and shift management.
Improve accuracy: Software enables cost effective transactions, which are more accurate as compared to manual systems.
Reduced need of human resources: Automated systems reduce the need for human resource and also the need for transferring data from one department to other.
Promote easy and effective decision making: The management can take decisions based on previous data of the company and the decision regarding a work can be taken from anywhere through online services. The various reports in the form of graphs, charts and bars can help the organization to have a clear future visibility. The drill down reports helps in finding out the areas where the organization can improve its performance and it also prevents work repetition.
Using technology advancement for extending business services: Technology advancement can be used for improving business services. The use of internet enables the organization to market itself on the global platform and run business processes without spending heavily marketing manually.
To improve communication with partners and customers: System enables the company to send emails and messages to customer without manual intervention, and provide easy customer service. Software helps the organization to retain its customer and increase client base.
To easily manage the human resource: ERP systems automate the process of shifts, work schedules and attendance. HR management modules enable a company to keep a record of current and previous employees, and also to manage the salary disbursement and promotion procedures.