As I discussed earlier, the ERP system is one that bridges the corporate interests with the presentation of the data required. As a system whose price is not cheap, the project must require a reason, "why should I do?" And in the year 2015, this Panorama Consulting, one of the world's largest ERP implementer that is headquartered in Denver, make a report that will be the answer of the above question. The following is a summary of the research Panorama related reason to implement ERP: from the above data, we can know that the difference of each reason is not too far away. But, that small different does matter. Let's discuss one by one, sort of the most widely used of the respondents.
17% Replaces the old system/ERP
Most respondents use reason to replace the old system/ERP as the basis for implementing a new ERP. This is quite understandable, given the implementation of the ERP big project is a very strange and there is a possibility that project to fail. Though highly supported by software, not merely speaking of ERP software. On another aspect of the research, pointed out that the biggest problem of the implementation of an ERP system is not in the software, but on systems implementation or in terms of the company's readiness to run the ERP. As mentioned above, very likely a company mutually ERP systems from a variety of different vendors to find the best system that best fits their company.
12% Increase business performance
An ERP system is a management system against the existing resources in the company, so no wonder if then improve business performance to be one of the most powerful reasons in implementing ERP. With a clear data logging, as well as calculations based on history is tracked, and reports that make analysis easier, makes a lot of sense, if the ERP is implemented, the goal of business performance will increase.
12% systems integration of a variety of different locations
In the era of globalization and the development of information technology is now already very prevalent, companies have different locations. In the manufacturing industry for example, could have been the location of the factory (factory) is different to the location of the warehouse storage (warehouse) and can also vary with the place of outlet sale is made. And surely, the Office of Finance also different place. To help integrate data from a variety of different possible locations of the city, the province, or even the country, ERP systems can indeed very helpful.
11% foster a corporate position
With an increasingly neat data system thanks to the ERP system, the possibility of growth (growth) of very large companies. It is very well understood by the Executive policy holders in the company to make it a reason for implementing ERP.
ERP system allows the leaders of the company to be able to know what activity is going on in the company. Whether it is done by procurement, warehouse, the person person sales, finance, HUMAN RESOURCES, and others. With the clarity of data like that, certainly not wrong if the process ERP implementation is done in order to enforce the rules. But, as we all know, some company executives do not mentally there's a violation of the rules, as long as the profits obtained by companies remains large. Hehe. So, don't be surprised if only 10% of respondents are implementing ERP in order to enforce the rules.
10% of the Global operations of Standardization
To facilitate the business processes within the company (be it a manufacturing company or otherwise) surely required a global operating standard. ERP has the ability to help the occurrence of it. Although global operations, standardization is not the main aim of the ERP.
7% Fun Shareholders or Parent Company
With the ability to present an ERP company activity data in real time, it's certainly the shareholders will be very happy if the company using ERP. But, it would also not be the main objective of the ERP implementation. Why? Because the goal of ERP may indeed be the basis of the company's real actions.
7% serve the Customer better
Previously I have to clarify in advance, ERP potential to help companies serve the customer. ERP can help control a sales order or work order from the customer, even in level: now the ordered goods to the production process is which? Are still in the stage of waiting for the DP, the purchase of raw materials in the production process, until the sequence 1, 2, 3, etc. or to the stage of delivery? ERP can help companies present that data to the customer. In addition, ERP systems can also help companies handle customer complaints related quality of the goods shipped. With the help of ERP systems, companies will be able to keep track of which product (finished good) it came from. Of the production process, from the engine which, a raw material from which vendors, and others. But, from this research indicates that the service of the customer is not the main aim of the ERP implementation is done.
7% of the employee's Work
ERP is a system that can greatly facilitate the work of employees. It can not be denied again. Why? Because the procedures that once had to be bypassed with a difficult calculation process, likely will be assisted by ERP software with one click only. Hehe. But, for the most part the company's leader, ease employee is not the main focus in the business process. In fact, in some cultures, there are companies that would intentionally add to the workload of employees if his Department look relaxed and lots of free time. So, it was clear that although the ERP will facilitate the work of employees, it is not the main aim of the ERP implementation within a company.
1% other companies having ERP
I don't know why this has even become an excuse. Just because other companies using ERP, the company decided to implement ERP? I mean, really? That was the last excuse of using ERP in the year 2015 which I took from the annual report of Panorama Consulting. May be useful. If you have questions and would like to chat to question an ERP system mainly in the manufacturing industry, please share in the comments box.