Business Automation and Software Blog

Risks and Rewards of ERP Selection

Posted by Robert Baran on Wed, Apr 29, 2015 @ 11:28 AM

Over the past month, we have taken a close look at Enterprise Resource Planning (ERP) selection. This included understanding the possibilities and potential results, grasping what ERP selection findings mean for businesses and the challenges and yet inherent opportunities of ERP selection. There is much to contemplate and consider. For the purpose of review and clarity, the following summarizes the risks and rewards associated with ERP selection.

Risks of ERP Selection, Implementation, and Use

  • Massive undertaking of switching systems over to ERP. Without an IT department capable of such an undertaking, it is important to have a consultant/vendor to help with the process.
  • A large investment in time and money selecting, implementing, learning, and using the system. Even the process of choosing a system can take a year or more. Don’t expect an urgent need to be met instantly.
  • Lack of implementation support and help if a consultant has not been hired to help with the process.
  • Possibility of ERP implementation failure. Don’t be overly optimistic of timeline and budget estimates, and plan for unexpected situations and expenses to arise.

Rewards of ERP Selection, Implementation, and Use

  • ERP systems have the potential to greatly increase sales by streamlining all internal and external information into one solution to better track and respond to customer demands
  • ERP systems streamline processes and are able to reduce costs by tracking and eliminating unnecessary expenses
  • ERP systems are designed to be used over a life cycle of ten or more years. This means new systems won’t be needed all of the time. Instead, a prospective buyer can rest assured that their selection of an ERP solution will not only meet their current needs based on growth but is scaled to handle their needs for years to come. Their needs will be met for five to ten years down the road.
  • ERP’s whole premise and goal is integration, and integration is vital. Integration of business processes and systems is what ERP does. This integration is for both existing data and future data that will need to be added. Integration also means that all departments will have current and correct information instead of needing to double check with other departments or systems to verify or enter data.
  • Automation is another reward of using ERP. This means that manufacturing automation is furthered because those working within the manufacturing spectrum and inventory areas of the business don’t have to manually enter data. The manufacturing automation leads to less down time and more production.
  • ERP can be deployed in a variety of ways. One of those is in the Cloud making it more accessible and affordable. Manufacturing Cloud ERP allows for inventory management and transactions to be carried out and viewed from anywhere. Manufacturing Cloud ERP also allows for a more affordable option because it is scaled to the size of the business instead of a one-size-fits-all pricing model. On the other hand, on premise deployment through a server is beneficial because of its robust capabilities and ability to manage the system in-house.

Our hope is that this will be helpful for you in having a clear and realistic picture of the risks and yet a good understanding of all of the rewards and potential having an ERP system offers. We want to help you in the process of selecting, implementing, and using ERP software. This can transform business operations and streamline them into a cohesive unit that will handle and encourage growth. Please contact us for more information.

It is also important to not only understand the current outlook of ERP software but to also understand where things stand from a manufacturing perspective. Then, the two can be linked together to further success. For more information on the manufacturing outlook for the business community, view our pre-recorded broadcast “A 20/20 Look at Global Manufacturing”

Topics: ERP, Manufacturing, Cloud Based ERP Solutions