Some experts say ERP is on its way out. Not so, says Dan Woods, a technology leadership consultant, in an article on Forbes. But there is a problem: Many ERP customers are not fully using the power their systems provide.
ERP remains essential for optimal business processes, especially after companies get over the initial hurdle of adopting an ERP system. As adoption rates increase, ERP is becoming more valuable to businesses around the world. When ERP was born, business computing was robust. To have a single shared database to integrate all different business processes was — and still is — quite amazing.
But ERP has evolved and is getting stronger. The only failure in the market, according to the article, is that customers are spending money for something they’re not fully using. The Forbes article outlines how companies that understand their business processes usually have a better grasp on how to fully utilize their ERP systems, so making sure a business grasps its processes is essential to capitalizing on the benefits of ERP.
There’s value in understanding the full potential that the solution offers. The key is to look at the major business processes in the organization and question if the ERP software is ramping up efficiency among these processes. Many times, there are companies that still do manual workarounds. That’s a sign of adoption failure.
Reporting is the cornerstone to any process in ERP. By using the system to its full potential, companies gain a more robust reporting structure.
Source: Forbes, March 2012