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Top Five Reasons Why ERP Systems Work

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Article Index
Top Five Reasons Why ERP Systems Work
Reason Two: Single Point of Service
Reason Three: More Effective Communication
Reason Four: Higher Throughput
Reason Five: Better Security
All Pages

ERP systems, or Enterprise Resource Planning systems, are complex works of software which can cost you a lot. So why bother when you can manage using multiple smaller and much cheaper software? Here's why.

Reason One: Process Support

Automation is about support. Many people tend to forget that, even software vendors. Yes, registration is very important, so is the quality and timing of your data. Without it, you're lost, no doubts about it. But work is not about registration, it is about getting things done. In order to do so, people follow procedures and they communicate about it. It doesn't matter whether people follow formal procedures or their own; targets, followed by related procedures are the foundation of today's organizational work. Procedures include work flows, communication, decision points and timing.

Using a patchwork of many different software packages, procedures rely heavily on the willingness of people. As there is no support for their procedures, the registration process itself creates an extra burden on their already overloaded schedule. When there is no clear advantage in the registration of data for your workers, you will have a hard time motivating them to use these systems. What's more, you will experience difficulties in getting and maintaining a helicopter view of what's going on. That's not because your workers don't want to obey, it is because you as the manager pushes them to focus on overall results, not on entering data. From that perspective, dropping the extra burden of entering data streamlines their process of getting things done, enhances their throughput, raises their worth for your company and proves their loyalty to you and/or your organization.

ERP systems don't focus on registration, but on process flow. Registration is an integral part of following the procedures. Formal procedures that is; no individual routes or personal dependencies can be created. This greatly enhances the acceptance for entering timely and correct data and at the same time lowers the companies dependancy of individuals. As people can focus on their daily work, they don't need to spend extra energy on a seperate registration process or on extra communication. So there is no need to persuade people to use the system; without using it, they can't get their work done.



Last Updated on Wednesday, 13 January 2010 12:23  
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