What are the main reasons to get an ERP system?
There are many reasons to get ERP system for a successful organization. Here are some of them.
ERP systems automate business processes by putting them into a useful format that is standardized and common for the whole organization, and it could even be used between their suppliers and customers. It captures data about historical activity, current operations and future plans and organizes it into information that every staff member can use to help develop business strategies.
ERP integrates financial data. Managers try to understand the companies’ performance, and they may find many different versions of the truth. Financial department have their own set of revenue numbers, and the sales department has its own as well.
The different business units may have their own versions of how much they contributed to revenues. ERP creates a single version of the truth that cannot be questioned because everyone is using the same system, giving managers correct and complete information.
A special case is found in manufacturing enterprises. These companies – especially those with an appetite for mergers and acquisitions – often find that multiple business units across the company make the same kind of work using different computer systems. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count besides improving the quality of information.