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6 Reasons to Why Companies Choosing ERP System

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You may already be experienced with Enterprise Resource Planning (ERP) programs and the many advantages an organization can bring to an ERP program. But why are these programs introduced by organizations? Below, the top 6 reasons why businesses should implement an ERP system are outlined.

Legacy Systems simply isn’t worth

One of the most common reasons businesses purchase an ERP system is that their current legacy system is simply not worth the inconvenience or cost, and it is agreed that it is time to cut loose. We are seeing more and more legacy systems that are no longer supported and have thus exceeded their acceptance through stale functionality and increased risk of failure.

Companies that are still operating with legacy systems also find that they can have security issues, lack of modern features and functionality, and lack of flexibility to customize or integrate.

Your business is growing, but not your Legacy System

This growth, known as organic growth, often involves more than a simple system of accounting. Common complexities such as managing multiple locations, addressing increased staff communication needs, and the need to better manage processes arise during the implementation of the growth strategy, which legacy or basic systems simply can not handle.

Therefore, the value of departmental information management and information flows also increases as an organization grows. Department-wide sharing of information becomes a problem as the information is stuck in the department silo and is not easily accessible.

Organizations can also expect non-organic growth, such as fusions and acquisitions, along with organic growth. An acquisition strategy may include a process that can be versatile as different ways of managing and monitoring a company are implemented and integrated. This technique may also include a framework that can be easily and quickly implemented in newly acquired firms or divisions.

Divestiture

It is not unusual to see organizations trying to re-focus their activities, particularly when an organization’s branch is performing poorly or failing to meet future goals and direction. While a subsidiary as part of the larger company growing experience little to no growth, selling as an independent business may be quite valuable.

It is common for spun-off subsidiaries to invest in a different size system and start with clean data and tailor-made data fields. In fact, a modern ERP program may encourage the change of focus away from a product or service and help achieve a’ clean break’ for a business selling off a division or product.

Centralized Locations and Departments

ERPs offer knowledge of inter-departmental operations and situational awareness that can not be done without an ERP. We encourage organizations to use the same information across departments, stamping out the threat of repetitive data entry, time-consuming, money-wasting activity.

Organizations will also shift to an ERP when they need to set up governance and ensure that decentralized teams operate and work the same way throughout the company.

With Your Growth Your Legacy System Supports The Latest Technology

An ERP has become a ‘ must ‘ for any company that wants to stay competitive, as companies are increasingly looking for innovation to achieve competitive advantages.

Companies are looking for quicker access to information, facts and history to make decisions more quickly. We also aim to improve customer experience without adding additional costs to higher headcounts.

With hundreds of ERP implementations under their belt, IBBUZZ Team / YcfoERP Consultants know what questions to ask and what is reasonable (and unreasonable) when it comes to implementing and negotiating contracts. You wouldn’t go blindfolded into a restaurant and hope to pick the right meal for you, so why do you have to do the same with something as important as an ERP system?

6 Reasons to Why Companies Choosing ERP System

You may already be experienced with Enterprise Resource Planning (ERP) programs and the many advantages an organization can bring to an ERP program. But wh

Ryan

Business Development Manager

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