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How Do You Know Your Company Requires an ERP System?

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ERP systems have many advantages, but they also have their costs including learning curves and the costs involved in adopting new habits and new ways of work.

Sometimes, it is tempting to confuse what you want with what you need, and such confusion can lead to waste of money and resources – something, which few businesses can afford. It’s no different with ERP systems. There are times when you have to make trade-offs and get an ERP system at all costs, and there are times when you need to think clearly and decide whether it’s time for you to implement an ERP system, or whether you should let things continue as they are.

In this article we take a look at the top signs that indicate your business or organization needs an ERP system immediately.

ERP System

Your business definitely requires an ERP system if:

1.You have a patchwork of Independent software systems creating information silos – this usually is the top reason why an organization may need an ERP system. What you need to find out is whether the cost/benefits of implementing an ERP system is actually better than the cost/benefits of letting things continue the way they are.

2.Information silos are slowing down operations and increasing response time – isolated pools of information would naturally slow down operations and increase response time. What you have to find out is whether they are affecting your business negatively, or whether there can be significant business improvement with the implementation of an ERP system

3.Key business information required for making decisions is difficult to access – this is one of the top signs that an organization needs an ERP system. If business decisions cannot be taken with speed and efficiency then businesses suffer. However if key business information can be accessed quickly then it can be a deal maker and help businesses gain a competitive edge.

4.Your worst staff keeps blaming software and info systems for failures and even your best staff agrees – in workplaces, productivity would fall and skilled workers would feel frustrated without the proper tools. Usually, if your best employees say they can do better with a different system or tool, if you can afford that tool or system – they would do better.

5.IT maintenance has become too complex and time consuming – a patchwork of independent systems leads to greater expenses on maintenance and coordination. An ERP system brings down those costs.

6.Customer experience and sales is taking a hit – a major part of business operations and existence revolves around sales, and everything revolves around customer experience. These can take a hit with uncoordinated or time-consuming processes, and, on the other hand, can improve significantly when information is transacted through a single portal.

If you find your organization facing one or more of the challenges mentioned above, then it might be high time for you to take a fresh look at the cost/benefits, and then implement an ERP system as soon as you can.

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Chirag Shivalker
About the Author: Chirag Shivalker heads the Content team at Hi-Tech iSolutions LLP. He has a long history in the BPM space and covers wide range of topics on BPM, Enterprise 2.0 and technology trends in business. He also enjoys writing about how active leadership and development plans can pave path for a process aware organizational culture that helps successful and sustainable process – based management.