ERP systems in a business world of digital transformation
These days, most businesses rely on electronic systems to manage their documents, data and projects. For many years now, they have been using Enterprise Resource Planning (ERP) and Electronic Content Management (ECM).
Yet with digital transformation, companies are wondering what the future holds for such tools. Do they need a full revamp or just a few changes? To shed some light on the matter, here are a few facts and figures on ERP use by businesses.
Benefits derived by businesses when using ERP systems
Even though the manufacturing industry is the biggest user of ERP systems, their use is expanding. In 2018, close to 50% of companies had already implemented, or planned to implement, an ERP system (Technology Evaluation Centers).
Businesses can save considerable time by having an ERP system: they can manage their different activities and systems from a single location. This enables them to centralize their information and improve collaboration between their various in-house departments. For example, in the case of manufacturing companies, orders can be handled more expediently at each step of the process.
By using an ERP system, delivery companies can increase their on-time delivery rate by 24% (Aberdeen). As a result, they can reduce their operational costs by as much as 23% and their admin costs by 22%.
Is it best to implement a new ERP system or maintain your legacy systems?
There’s no denying that you stand to gain from ERP systems. But introducing and implementing them can get complicated—especially when you already have an infrastructure in place.
So some companies prefer to start from scratch and buy a new ERP system to replace their legacy systems and upgrade their technology. But you need to know that almost half of new ERP implementations fail the first time around. In addition, one out of three times the implementation takes longer than estimated and can cost three to four times what was budgeted. The main reason they’re not on time or on budget is that their systems need to be made more efficient and more robust to support the new features.
Of course, if you make such a change, you should also overhaul your organizational planning. Don’t presume that employees are going to immediately and readily embrace the new system. It takes genuine reflection beforehand and guidance over the long term to change the organization itself.
At Objectif Lune, we are well aware of all the obstacles to introducing a new ERP system. That’s why we’ve developed solutions to help you solve the problem of integrating ERP systems with central, and even specialized, systems. Our technology acts as middleware so that you can bridge the gap between your different systems. Your employees will be happy because they can continue to work in their familiar environment while benefiting from additional features to optimize their efforts. To find out more, don’t hesitate to ask to speak to one of our advisors. It’s free!