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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Kids rely on their parents to help do chores, play, work and make decisions. The parent's job is to provide enough support and nurture them, so they become self-sufficient. The ultimate goal for the parents is to make their role redundant. A similar dynamic takes...

Getting Managers to make a decision can be challenging at times. As a Business owner/Project sponsor, try to estimate the cost of making a decision by your Managers. It is the total of the hours your team spends in discussions multiplied by their hourly rate. You may...

What happens when something seriously goes wrong within a project? Typically, the senior stakeholders get together for a fact-finding mission. They assess the situation and usually find a culprit (scapegoat). The scapegoat is generally not part of fact-finding mission...

Consulting services on massive sale! Take while consulting hours last! Buy 1, Get 1 free! While we have enough consulting hours! Get an additional 30% off when buying consulting services for the next six months! It sounds absurd, isn't it? Yet, we compare professional...

Life is the way it is! So, keep grinding it and have fun! We have all good intentions and still suffer misfortune. We may follow all the traffic rules and drive safely, while another person can strike us from the back. Projects may go out of control due to things...

We must pay attention to whom we are listening to! For instance, if I have a headache, it may not be a good idea to listen to the advice of someone else's who has suffered from a headache. Instead, I will be much better off consulting a physician. We often hear and...

Sometimes we feel alone in the busy crowd we are in. We believe people around us do not understand or care about us. Our simple message doesn’t appear to get across. We often wonder - why no one understand my problems. Look, though we live in the same world, we live a...

The easiest way to make things useless is not to do anything about them. Stop maintaining, and they indeed will become useless. For example, the perfect building, machinery, business process, or software without maintenance will become useless with time. It will...

When we are experiencing positive emotions, we tend to give more. For example, in emotional states, when we are fulfilled, happy, excited, and peaceful, we like to share new ideas, put in extra work, and sacrifice to get the job done. To get maximum output from your...

A soap bar deals with a lot of dirt, grease, and strains and remains unaffected by any unwanted substances. The soap bar does not get dirty with use. Leaders must be like a soap bar! The leaders deal with many negative, insecure, depressed staff members and must...

The first reason is that we know too much about each other. We intimately know the likes, dislikes, thinking patterns, priorities, preferences, values, goals of each other. Their body language communicates the whole heap of stuff to us. Hence, there is seldom a need...

There is a big difference between entertainers and leaders. The entertainers cajole, tell us what we want to listen to, mesmerise us, and make us feel important. The leaders take complete control of the situation, take full ownership, challenge us, and deal with the...

Ask your parents to change their habits. I bet you are going to struggle. We naturally get rigid in how we think and operate as we grow. As a result, our habits become difficult to change. The business world is no different. Ask the executives/managers to change how...

We all have different standards of delivery. For example, one may consider delaying the delivery, and few product issues are normal. Whereas for other vendors, product issues and delays may not be acceptable. Rather than relying on the vendor’s definition, define...

Our world is a collection of concurrent drama stages. We all are participants and audiences of the drama at the same time. As audiences, we are busy watching who is on the stage. We hardly remember the previous stage artists and the injured, sick artists. Let us see a...

Organisations have various types of non-financial debt: For instance: The software does not fully support the business processes The software integrations are manually managed The are quite a few bugs in the software The staff is not fully utilising the given...

Achieving goals, meeting targets, and changing the world tends to take our pride to the next level. We believe we have the power to make things happen. It gives us confidence that we are someone. It boosts our ego too. However, we feel too helpless when we struggle to...

Most of us don’t have time to think about others. Everyone is busy fighting their demons. So, if someone stops to offer some advice, then pay your full attention. Stop giving excuses, sharing other problems and wasting time. You may unconsciously satisfy your pride by...

The biggest obstacle to improving our condition is not additional budget, time, resources, knowledge, or expertise. Instead, it is a very simple but profound thing. It is called ‘action’! We will find a way if we consistently take action to improve our condition. It...

We all have emotional connections to past events, things, places, people and experiences. Our past is part of us. Sometimes we want to re-live our past and cherish memories. Where we stand today is the result of our journey so far. If we are not standing in a good...

We talk about the company's vision, mission, values, strategy and goals. But what about corporate habits? Corporate habits are the default or standard way the employees operate within the organisation. These habits also form part of the corporate culture. For example,...

Do not waste time changing others to think like you. We all view and perceive the world around us very differently. We are slaves of our habits. Our viewpoints, thinking patterns, and values are unique to us. So, save your time and energy by not trying to change...

We love to talk about others. We speak behind their back about how bad they are. We criticise their work, habits, dressing sense, relationships – almost everything possible! But why do we do that? One reason is that it takes focus away from ourselves. Getting in front...

We often perceive Sales professionals negatively. We see them as trained individuals who take our money to offer a product or service. However, it is a very narrow viewpoint. Sales professionals play a vital role in our personal and business life. They help us make...

In the business environment, we determine loyalty by the number of years in the service. However, it is one of the most crude ways to determine loyalty. Let us measure loyalty in a more real way. Here are a few characteristics of a loyal employee: They are prepared to...

“I didn’t like the design!” may mean: No one consulted me about the design before. Or, I didn’t want anyone to prepare the design. Or, There is no need for a design. Or, I reviewed it and didn’t like the design. For various reasons, we do not often communicate...

We often do not regret our wrong decisions in projects, business, and life. Instead, we regret the decisions that we did not make. For example: Holding off on the decision to fire the unproductive employee Holding off on a decision to invest in real estate Continue...

Projects are like painting on canvas. Few decisions are arbitrary; others are not. Few decisions are difficult to change. While we have a vague understanding of the end result, the destination, approach and outcome can vary. It makes sense to start with a Minimal...

The progression through Associate Consultant, Consultant, Senior Consultant, and Principal Consultant may mean someone has been a consultant for a long time. The progression of job titles may be because the consultant has developed as a professional. It may be because...

Consider ditching the weekly Project Status Report (PSR) meeting with the live Project Status dashboard. Consider replacing Risk registers and risk review meetings with dynamic Risk dashboards. Let the owners of risk call for meetings when and if required. Consider...

As leaders, we tend to do too much! We tell the team what to do, how to work which each other, and things to avoid. It may be because we know too much while working in the organisation for a long time. The Project team can be relatively new. But don't forget that the...

You may know someone whose house is a perfect mess all the time. However, to them, everything is normal. You may also see a few desks full of coffee mugs, paper, and junk in your office. However, the people who use the desks may be perfectly harmonious with clutter....

We often stress too much about the stress. We need to stress ourselves and others to achieve bigger things. We must sweat, persevere, and sacrifice to attain higher goals. When we are on our toes, we develop much faster as individuals and organisations. Stress is not...

Humans are a source of enormous energy. When we group and represent an organisation, we become an energy house. We may utilise our energy constructively or destructively. Where the majority of our energy will go depends on organisational culture, leadership, vision,...

Hiring an expert/consultant can be expensive. Therefore, many SMEs often try to avoid hiring them. They try to source resources in-house or other alternate ways. So, why do we need an expert? Here is a list of a few reasons: Experts help businesses to avoid making...

Making decisions is hard! When we make decisions, we own consequences too. If the outcomes of our choices are unpleasant, no one else is to blame. We are on the hook. So, to get off the hook, we often get others to make decisions for us. Should I buy new pair of...

When you are in pain, you may need help from others. However, others may know about your pain too. This can be an opportunity for others to sell to you. Unfortunately, many who lack integrity may use this opportunity to sell and exploit you further because you are in...

In the last few posts, we are grinding on innovation. So in this post, I am addressing the question – how to start innovating? So, what must businesses do to start innovating? In the last post, we covered that innovation starts by asking questions and challenging the...

We all talk about innovation. But how does innovation starts? What triggers us to innovate? There may not be one particular trigger. However, one of the most common and profound triggers is ‘the question’. The questions like: Why does the customer have to wait? Why do...

When you hear the word innovation, what comes to your mind? You may think about new or emerging technology. For example, Blockchain, Crypto, IoT, AI, and Robotics. Other things that come to your mind may be a lot of capital investment projects. It may sound too much....

We all are busy doing productive or unproductive work. We like to follow easy steps to achieve the outcome as soon as possible, with minimum effort, cost, and risk. A Business owner may not be interested in tax calculations. However, he may love to know all about tax...

It is excellent to stick to the agenda and tightly run meetings. However, we must allow freedom of new thoughts, ideas, and questions. These are all the byproducts of discussion. These topics may not directly relate to the meeting agenda but are essential to note. The...

We may have no idea about art, but we may not hesitate to tell an artist where to improve. We can have strong opinions about the look and feel of the software but no clue about user experience. Yet, we tell designers how to design all the time! As...

He made me cry! She gets on my nerves! The team is useless! My manager doesn’t have a clue what he is doing! My employees make me mad when they continue to work from home! We make such complaints all day. Although we may not say it out loud, and tell such narratives...

Give the best employees the convoluted software systems and see their motivation dissipating into thin air. Give average employees modern business systems and see their productivity skyrocket. No one likes to find information. We like the information to be available...

We buy for different reasons. There is nothing good or bad with our buying habits, but few practices are better than others. Let us look at the following three types of buyers: Demand-specific buyer: This buyer goes to the market to satisfy the demand. For example, if...

The Project team expects you to make all the major project decisions as a Sponsor. It may be a default position and expectations, but you have a conscious choice. You can choose to be a decision maker or decision facilitator. There is a big difference between them. As...

As a business executive, you are responsible for making major business decisions. The challenge is making decisions in an area where you may not have the required domain knowledge. Often one such area is Information Systems. The entire business and organisation suffer...

Forming a Project team is one of the most crucial tasks for the Project's success. However, it is a challenging task to get the best people to work on your Project. Why? Because, firstly, they are already in demand. Secondly, there are in scarcity. Thirdly, the best...

"What Got You Here Won't Get You There" is one of the great books by Marshall Goldsmith. The central theme is that the tools and habits that have helped us to achieve what we have now may not help to get to the next stage in life. Hence, we must find new tools,...

The Project teams juggle multiple balls (tasks). They often wear multiple hats and pretend that they have got things under control. To demonstrate this, they must have a few balls with them. There should not be anyone waiting for a ball from them. Hence, it is common...

Human potential is the most underutilised resource. The existing structure of the division of labour makes it even worse. In the workforce, everyone is bound to have a job profile. The expectation is for the employees to operate within the parameters of their job...

It may sound strange, but it is true! Technology projects revolve around the Sponsor's focus point! The Project team, vendors, and Business executives ensure to keep the Sponsor in confidence. Ultimately, as a Sponsor, you are accountable for the project. You are the...

Project delivery teams love to standardise things, so it is easy to rinse and repeat! In the Project execution, the repeatable steps are easy to replicate and automate. Further, it increases the efficiency and profitability of the delivery teams. Standardising project...

Observing yourself is a fascinating thing to do. While parking my car in the city, when I see too many parking spots, I often catch myself taking my time deciding where to park. When there are too many choices, I take my time to select the best one. So, no other car...

Life has gifted us with expectations. We expect things to happen in specific ways. We assume that if we do the right thing, life will return good to us. We plan and think that we have things under control. Then, life does what it has always done! We get bitter...

It is a fascinating question: From where to start the digital transformation journey? There is no one answer to this question. You could say start by refining Business Strategy and goals or, Develop an Enterprise or Business Architecture or, Documenting current...

Let me ask you: Are your requirements futureproof? I know it is a tricky question to answer. How can anyone predict the future? But, we must have a vision for the future. When you buy a new house to live in, you may not know your exact requirements. However, you may...

Have you ever considered the following questions before implementing the ERP? Enterprise Architecture (EA) is not a discipline of producing nice drawings. Instead, EA practice is meant to answer these fundamental questions before embarking on the ERP journey. This is...

Before we start any physical development, we prepare architectural drawings for the building. Before developing software, the engineers create prototypes, wireframes, and technical architecture. Before developing any complex machines, engineers spend massive effort on...

Since morning, I have pondered the various facets of this question: What is listening? Here are a few leading thoughts: Many of us assume that listening is - not speaking. So, if we are not talking in the conversation, we are listening to the other person. However,...

In general, as customers, we hold a position of power. The service providers are meant to provide the best possible service, customer care and warranty. Therefore, when we speak, we are meant to be heard. We possess the position of power (either direct or subtle). The...

You may hear this common complaint from the Business Analyst or Consultants: But you do not provide clear requirements! Or The customer does not understand the requirements! Or You keep changing your mind about the requirements! It is one of the common complaints from...

When we get too busy with our lives, after a while, there is an epiphany moment. We realise that our house is a mess. There is too much stuff; things are unorganised and intertwined to present themselves as a perfect mess! The whole experience can be pretty...

What if my project is on track, but I am implementing the wrong software product? How about I am overeating because my fitness app reports I can intake more calories? How about I decide to watch TV rather than go for a walk, as my smart watch tells me I have enough...

There is a big misunderstanding about the role of ERP and CRM vendors. The common assumption is that ERP and CRM vendors are responsible for implementing their products based on your specific needs. If you assume that the vendors will offer a turnkey solution by...

Uneducated buyers lose the most in the marketplace. Seriously, it is not the seller's job to educate buyers if their offering is fit for purpose. The buyer must take the initiative and understand the problem, pain points, and how the proposed solution will fix the...

Any good host would create an environment to make their guests comfortable. The sensible host even alters the environment (lighting, food, music) that suits the guest’s preferences. Similarly, we must develop the habitat of animals and birds before bringing them to...

While preparing for advanced mathematic exams, I used to ditch a few unimportant topics, first. After all average student like me will not win by preparing everything. Similarly, when we go to the gym, we ditch a few exercises that do not assist us in meeting our end...

We hear a lot about greatness. Great products, people, experiences, and services. Then, there are more inspirational quotes like ‘Good is the enemy of great.’ We hear about greatness from the motivational speaker too! In addition, salespeople often refer to greatness...