Why We Need ERP? These 11 Reasons Will Reveal Hidden Value!

Clarity on purpose is vital for any investment.

Investing in ERP is a crucial decision for a business. So before investing in ERP we must understand why we need ERP?

This post reveals 11 solid reasons why you need ERP.

Before going any further, do you know what is ERP?

I have covered this topic here. To know more about ERP, you must read this blog post.

Ok, you know what ERP is? Let us answer the vital question, why we need ERP?

11 reasons why we need ERP?

1. Automation of all boring operations of your business

Believe it or not, your business has the similar operations as many other businesses. For example, you pay your employees, buy material, send quotes, follow-up prospects. ERPs has inbuild capability to automate these boring operations. ERP takes care of all your standard processes across Finance and Operations areas.

2. Improves your Customer Experience

ERPs have specialist modules to take care of your customer experience aspect. For example, CRM (Customer Relationship Management) or CE (Customer Experience). These products/modules help you to automate leads management, marketing campaigns, customer communication, omnichannel experience, customer complaints, feedback and much more.

3. Centralise enterprise data

With ERP, your operational data in a centralised in the one system. ERP takes care of your Master data (Customer, Vendors) and Transactional data (GL). It fulfils end-to-end data management requirements, e.g. data integrity, security, and normalisation.

4. Reporting and Business Intelligence (BI)

ERPs offer pre-built reports and dashboards. All ready to use with minimal personalisation. They also supply many tools and resources to develop your reports and dashboards. You can also use specialist Business Intelligence software and connect to your ERP. Modern ERPs offer open API and connectors to BI software.

5. Standardise business processes

ERPs force your business to adopt standardised business processes. Consider you have employed two Sales Managers. Without a centralised system (ERP), it is difficult to get them to follow company processes. But, by using ERP, both Sales Managers have no choice. They will have to use same workflows, templates, and documents. For example, they both will develop quotes/proposals with a consistent template. The approval on quotes/proposals will be set. Thus, both Sales Managers will follow the same process.

6. Measure and continuous improvement

ERP helps you to measure the effectiveness of your processes with ease. It helps you to see bottlenecks and limitations in the processes. With the right plan, you make necessary changes for continuous improvement. For example, the Customer Contact centre log reveals that most calls are due to a new product offering. So, to improve your customer experience, you start proactively informing and educating prospects and customers.

7. One Ecosystem serving as a digital backbone

ERP helps you to develop one central ecosystem to manage operations. Modern ERPs offer easy to integrate tools. So, you have an ecosystem – ERP integrated with other business applications. There are many benefits, for instance, it becomes efficient to source data for reports and BI. For example, consider your ERP manages manufacturing, Sales, Supply Chain and Finance operations. The Customer and Employee self-service portal integrates with ERP. It offers one ecosystem for all your business operational systems.

8. Easy Audits for all

Due to ERP’s inbuilt security and audit logs recording, you can easily report who has done what? For example, you can check who has removed a document, approved a Work order, etc. You can also supply reports and information to external auditors.

9. Security is inbuilt

ERPs offer robust security mechanisms. You can control access at an individual field level. For example, if required, you can secure the Data of Birth field to be not visible to certain users/user group. Modern ERP offers multi-factor authentication, password policies to ensure your data protection.

10. ERP offer a real agility

ERP offers heaps of agility to your business. You may want to improve processes, add a new capability, develop a new product/service. ERP is there to support these initiatives. For example, you can change existing workflows in ERP to support changes in business processes. If you want to add a new capability, say digital campaigns, then add on a CRM module or integrate CRM to ERP. So, ERP is the core of your digital business capabilities.

11. Gives you freedom, so you can focus on big stuff

ERP gives you freedom by offering one solution for all your day-to- day operational needs. For example, with ERP, you have a set automated processes for Procure to Pay, Order to cash. So, your basic operational stuff is under control. You can now focus on strategic initiatives, like Customer portal for self-service.

ERP is the heart of the digital capability of your business. It takes care of end-to-end process automation for your business. ERP has a lot of value to offer – provided you choose the right ERP product and committed implementation team.

Good luck with your ERP journey!

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Most prefer taking Panadol over resting and eating well. Often, it is too tempting to fire the employee we dislike rather than adapt according to their style. Similarly, we tend to spend money on marketing the average product rather than refining the product. Quick...

It is painful to acknowledge a small project getting out of hand. I have made this mistake a few times. I underestimated the grief a small little project can cause. The lesson learnt is to manage a small project respectfully and develop a light methodology to manage...

Should you have one software to manage all the processes within your business? Imagine one enterprise-wide software used by your Finance team, Inventory, HR, and all the other departments. The other option is that you have specialist software for every department....

The success of any journey depends on its preparation. The Digital Transformation journey is no different. One critical preparation area is freeing time for the senior managers (C-suite, General Managers, Department heads) so they can take an active role in...

I have come across Businesses in an extreme deadlock position. The organisation may have been in its comfort zone for years. They do not invest in technology or actively seek to enhance processes. Most employees eventually feel trapped by traditional business systems....

To make a perfect dish, we need a coordinated effort of planning, preparing and executing the tested recipe. Similarly, to win a game, we need experienced players to put every effort to coordinate and beat the opponent. The project execution is not different from the...

I have come across the following types of organisations: Discussion lovers: They love to talk, gain everyone's perspective, and try to keep everyone involved. The management keeps its people happy. No major disruptive decisions are made, and the organisation continues...

Whenever we find issues and failures within projects, the vendors, ex-Project Manager, and ex-Team Members are likely the culprits. They have a track record of screwing up consistently. They know this and no longer take the blame personally. The mature ones even think...

We will deliver the Statement of Work (SoW) by Monday. However, there can be further delay if we cannot receive the estimates. We can Go-Live as per the plan, assuming there are no further issues. We can hand over the product to the Support team if the Developers...

Business Process Mapping may sound like a good idea. However, note that mapping business processes with the input of internal departments is merely collecting one viewpoint (internal employees). We may miss the viewpoint of our customers, suppliers, regulators,...

In B2B sales, we think we are powerful as customers. The vendor's job is to understand our requirements, problems and offer solutions that fit our needs. The vendors try to develop a good relationship with us and adapt to our priorities and constraints. For instance,...

What is so special about Ford, Tesla, Apple, Dyson, and Open AI? These companies did not ask customers what they needed. Instead, they did hard work and imagined what their customers should have. Whether it is an affordable car, an electric luxury car, iPhone, iTunes,...

The success of our journey depends on how well we have prepared for it. Projects are not different. Projects are a journey to move from existing to the desired state. If we feel projects are painful, it may have to do with our preparation before their start. We may...

In B2B sales, the Sales team’s role is to help us decide. Making an executive decision is a difficult task. So, if someone is facilitating this process, then there is an opportunity for us to show appreciation. After all, the Sales team is helping us decide at almost...

In business and life, making the right decision may not count much. To be successful, we must learn to make the right decisions consistently and efficiently. So, having a refined decision-making process is more important than making the right decision. Things that...

More businesses are likely to fail due to a lack of decisions rather than bad decisions. Projects go south rarely due to bad decisions; they are likely to fail due to executives sitting on the key decisions. Many people live in misery not because they don’t have...

In business and life, we usually know our next step. It could be an investment decision, dealing with business problems or making critical decisions on available opportunities. Generally, we understand what our next step should be. However, calling another meeting,...

Our extraordinary listening skills, ability to lead, strength, courage, ability to persevere, and dedication can be one of many gifts. The point is, what do we do with the gifts that we have received? Most of us compare our gifts with others and either take pride or...

Taking care of someone is our choice. It is not due to our capacity, skill or capability. Instead, it is due to the virtue of the management decision stipulating that – we care! Customer service, employee care or supplier relationships does not happen by accident. Nor...

Yes, software implementations are too complex. During the implementations, we find it hard to articulate requirements. The development work takes too long. It takes ages to test and get it right for the Business. The Business stakeholders keep changing their minds and...

We can solve a problem in a million different ways. The key is understanding the problem's context before jumping straight onto it. For example: What is the problem's scope, constraints, dependencies, pain point, upstream and downstream processes? Who are the...

When I look at someone from a distance, I naturally form opinions and have judgements about them. Over time, when the same person comes close to me, I get an opportunity to learn more about them. It consistently reminds me how wrong my original opinions and judgements...

We can plan to control our actions but not the outcomes of our actions. When we say that we expect to improve the customer experience by 20% with the CRM implementation, it is mere anticipation. We are likely to have little influence over the outcome of the project....

Sometimes it takes a few times to start liking a song. It does not impress us the first time. But we eventually start loving it as we hear it more and more. It may take us some time to start liking a dish. The first few times, we may swallow it. But, eventually, we...

Sometimes we plan, work hard, persevere and still do not see the intended results. Other times, we sit back, relax, and don’t even think about our goals. Suddenly, circumstances change overnight, and our goals appear so attainable. Life has mysterious ways of...

In a business, we may decide to slow down, stop, or take a breath. We must know that while slowing down, the world around us will continue to move ahead. The market growth, technological advancements, and competition continue to move forward and challenge our business...

Walk the talk is difficult! As knowledge is becoming a commodity, talking is becoming easier. For instance, we can read a book, ask Chat GPT, undertake a course, and learn about leadership. Then, we may decide to talk about our newly acquired knowledge. For example,...

Most of us never go underwater wearing our prestigious divers watch. Many will not get onto the basketball court with their favourite Jordans. We may not do any sport on our luxury sports sedan. These are all marketing hooks, so we spend money and feel special. They...

When I see myself on the top, all others appear small and feeble. And, when I see myself with humility, all others seem to be part of me. When I see the fulfilment in achieving the goal, the journey tends to suck. And, when I see the fulfilment in making progress, I...

Do you ever wonder what is the difference between an artist and a leader? An artist is the one who creates art. He may have made pieces of art one or multiple times. We still refer to the creator of art as an artist. However, to be a leader, we must have to lead...

Our real values may not be what we publicise on our website, flyers and posters. Our real values are a reflection of our current state of business. For example, the high employee turnover, manual processes, lack of a safe environment, and non-compliance notices from...

Without a doubt, our day-to-day work (Business as usual – BAU) is keeping us busy. Any initiative that will make a real difference in our business is likely to be on our back burner. Why? Because we can say to ourselves and our stakeholders that we are busy. BAU work...

There is always a better way of doing things. It may be automating and streamlining business processes, improving system integrations, or improving decision-making with business intelligence. There is no limit to improvement. The problem is that we get so used to the...

Are you wondering if you should engage a consultant to assist in the selection of enterprise software (ERP, HCM, Asset Management, CRM)? You may be wondering what value they may offer. You may be considering getting someone from your organisation to select the...

Problem 1: I am overweight. Solution 1: I started taking weight loss products. Problem 2: My weight is decreasing, but I feel constipated and dull. Solution 2: I started taking fibre supplements and drinking black coffee to stimulate my brain. Problem 3: Drinking...

Sometimes the thing we are looking for so desperately is in our hands. Often, things are right before us, but we cannot see. Similarly, solutions to our problems are so obvious, yet it takes too long to realise. In all these situations, one thing that always helps is...

Let us not limit our thinking by assuming that vandalism is constrained to damaging private and public property. Vandalism, at its core, is a deliberate act of damaging assets. The assets can be software assets, technology, or even process and procedures. Suppose the...

Imagine a world without nappies, GPS navigation, or even a microwave. These innovations have become such an integral part of our lives. Yet, for centuries, humanity has prospered without them. A few years from now, self-driving cars, robotic servants and drone...

One of the easiest ways to kill continuous improvement is by asking our team – Don’t give me problems; give me solutions. Some are wired to find problems, while others are skilled in developing innovative solutions. So, often it is counterproductive to expect our team...

Leadership is not about taking pride in fan following or the size of our team. Sometimes leaders decide to march alone. Their purpose can be more significant than themselves. So, they put everything into the cause they are serving. They stand strong to fight for their...

Revenue, number of offices and headcount - is just one way to measure the significance of the business. Unfortunately, it is one of the most common ways. The significance of business is multi-dimensional. It could be its purpose, social impact, employee experience,...

We often make decisions based on emotions and justify them logically. But what can we do about emotional decision bias? Consider formally reviewing and refining decisions with a fresh perspective, new data and experience. Consider the following examples: In the...

Change management can be a misleading term. Often we have limited influence over change. Hence, we can not often manage the change. Instead, we can predict potential changes and prepare for them. We can strategise and prepare to adapt to the change. We can plan to...

Managing a team needs our valuable effort, time and resources. It is much more efficient to direct them (rather managing them). However, it is possible only if we know enough about our people. Precisely, their strengths, weaknesses, dreams, aspirations, drive and...

Many brilliant products have failed because they were released at the wrong time. They could be decades ahead of their time.Many decisions are never made because the seeker approaches the decision-makers at an inappropriate time.Many investment decisions fail simply...

If I want to transform into a marathon runner, I must first make a committed decision and start to develop a belief system of a marathon runner. My beliefs will guide my daily decisions and my decisions will help me to develop new habits. Out of new habits and...

In technology initiatives, the vendors have numerous motivations to complicate simple things. The greater the complexity, the more professional service hours are necessary to finish the work. Adding to the professional service's bottom line. Further, more software...

The great idea I had three months ago, may well be quite stupid today. The methodology that worked for ten projects before, may not work in the current project. The perfect plan I formulated a week ago, may well be all wrong today. We may like to think that we are...

Digital Transformation is a long marathon. Let us not exhaust everyone by continuously running and stressing. People are likely to burn out midway through the initiative. Plan for it as a marathon where the specialist teams get together to offer a joint coordinated...

We love to have ‘more’ - bigger, better, unique and special. In business and personal lives, we are on a constant hunt for more. For example, bigger houses, more profit, more employees, more customers and so on. There is nothing wrong with finding more, but there is...

Winning is great! We all play, work, and perform to win. We work hard, learn things we hate, and persevere to win. Yet, we hear the importance of failure. And not the significance of winning! We hear that failure is a great teacher. Our failures teach us what didn’t...

We all need attention from someone we value or care about. From toddlers to the elderly, seeking attention is one of our basic needs. We love to demonstrate our effort, expertise, courage, commitment or any other qualities. It is human nature to seek validation,...

Sometimes we feel stuck. As our next step appears to be a big jump. We think there is a risk. We feel overwhelmed and confused. Hence, we often make no decision and make no progress. In business and personal life, we experience such situations. For example, investing...

Things that worked for us yesterday and made us successful may not work today. Our old tricks to optimise operations and save costs may not be relevant today. The perks and incentives which were special before may have become a norm today. The point is that there is...

One of the biggest challenges I encounter is to stop thinking about myself. To get me out of my mind and focus on others around me. However, whenever I can give quality time to others, I feel liberated. By quality time, I mean listening with genuine interest and...

For a few teams, everything is too difficult. Most tasks are complex and full of risks. Projects take too long. Most meetings end up with more meetings but no concrete outcomes. The team members want to protect themselves from vulnerabilities. Everything appears to...

Life is a journey, we must keep going. or, We must practice mindfulness to live our life the fullest. or, When we set goals, we do not rethink, we put everything to achieve them! Advice like the above is going to be very shallow, useless and possibly frustrating for...

There is a common misconception that managing change is the job of a Change Manager. Change is constant. Slow or fast, there is a constant change within our environment. Our external influencers (economy, technology, competition, customer priorities), and internal...

In our daily lives, we frequently enjoy accumulating more stuff. The bigger, better, latest, fancier, and trendier, the better. Similarly, we frequently seek to expand our influence and power. We're putting in time and effort to fulfil new desires. It appears we are...

Why is it so difficult for us to actively listen?Why don't many of us make an attempt to speak effectively? For example, we do not think before speaking. Likewise, we do not create intellectual narratives. We do not communicate intentionally, altering tone, volume,...

Private corner offices, fancy job titles, and people vying for our attention are all indicators of power and influence. They frequently boost our egos while hurting others' egos.Leadership is a reflection of our character, not a position or status.There must be a...

What do luxury watches, purses, and automobiles have in common?They are significantly more expensive. They may not be widely available, which adds to their rarity. Their possession inflates our ego since they indicate wealth, elite status, and position.There is a...

Most common things are assumed to be commonly available. However, common sense is an exception. Common sense is uncommon! If we observe ourselves closely, without thinking, we repeat our past patterns, habits and approaches. We tend to do things the way we have always...

Band-aid remedies make sense!They are a fast fix, allowing us to move on and focus on more serious matters.They are inexpensive, so we can save and invest elsewhere.We don't need to wait for a professional, either.The issue arises when we do not know where the...

Refer to the generic business reference model for a holistic view of any organisation. Use the reference model to gain a big-picture understanding of your business.

Types Of Requirements! 61+ and counting....

Meetings are frequently regarded as a waste of time within organisations. There have been numerous strategies and tips for shortening meetings. We've been working hard to keep meeting times to a minimum. As a result, various tactics, such as stand-ups and planks, are...

Women have long been denied their fundamental rights. Sati pratha was widely practised in India for a long time. Similarly, apartheid was widely practised as a legal principle.Various parts of the community struggled for their rights over time, shedding blood, tears,...

If we cannot recognise good qualities and strengths in others (people, organisations, or communities), it is merely a manifestation of our own emptiness.

As a contractor, completing a six-month project in three months may result in a pat on the back and a notice of premature contract completion. On the other hand, if I complicate matters, I may be given the option to extend my contract.My profile as a project manager...

The true essence of transformation: Transformation is the planned and coordinated move from our current state to our desired new state. Organisations, things, and people are always changing, but not always transforming. Transformation is a deliberate effort that takes...

Why wait until the end of the project to communicate the lessons learned? Every day, lessons are being learned. Why not add five minutes to the end of recurring meetings to share and discuss lessons learned?Furthermore, knowing something is not the same as learning...

The world around us is evolving at an unprecedented rate. Workplace culture, ethics, and methods of operation are continually evolving. As a result of technological breakthroughs, the landscape of our working lives is shifting. In the midst of such huge disruption,...

When God creates us, he quietly says to our ears, "I have not created anyone else like you; you are special."One of my friends told another friend about it to help him overcome ego and pride issues. Most of us are wired to believe that we are unique, we are smarter,...

There are likely valid explanations for where we are presently. We might desire to advance, expand, and win more. However, we are more likely to stay where we are until we acknowledge the factors that are holding us back and take consistent action to unleash our...

Our activities, ambitions, plans, and motives are all centred on the fulfilment of our hopes.

A man who knows nothing about music can tell when a musician has messed up. Toddlers can sense when their parents are not in a good mood. Our visage is, in fact, an indication of our mentality.When we make mistakes as leaders, our natural impulse is to hide, deflect,...

Disease, confusion, lethargy, and other negative forces are continually working to make our bodies, societies, and organisations weaker and dysfunctional, only to push us backwards.We will automatically regress if we do not consistently push forwards with positive...

Consider your Customer Relationship Management (CRM) system making suggestions for Sales and Marketing strategy. The CRM assessed your sales data over the previous ten years, as well as publicly available data on consumer purchase tendencies, competitor products,...