If you decide to implement an ERP (Enterprise Resource Planning) software strategy, you probably do so for multiple reasons. Your system may be outdated and in urgent need of replacement. Perhaps you have new employees who are making a difference, or you want to improve your competitiveness and bring new products and services to your customers faster. However, one of the most compelling reasons for companies to choose a new ERP platform is the desire to significantly and sustainably increase the value of their business.
An ERP system is a major investment.
Implementing a new ERP platform takes not only time, but also resources and money. Many people, inside or outside your company, are involved in such a project, including both your own employees and external consultants. Add to this the financial investment in the software and the technical resources behind it, as well as the time required for careful planning and implementation and the go-live.
When does ERP pay off?
This is a legitimate question you should ask yourself. Here are the typical phases that can be seen during the ERP implementation process:
Phase 1: The ERP software is implemented and all employees are trained for it.
Phase 2: The „burn-in“ period, during which the new system is used companywide by each employee either area-specific or cross-departmental depending on the user profile.
Phase 3: The „post-burn-in“ period, during which the technical teams fine-tune and optimize the systems for the continuous operation within the company.
The real magic begins when companies can use the application data in an expanded form. The true value of the ERP system is to collect the data and to know how to use and apply it to improve your business.
Data is the new gold, but the treasure must also be lifted.
Perhaps if you are in manufacturing, your new ERP software would allow you to automate more of your manufacturing operations, collect data and perform advanced planning and forecasting, streamline the supply chain and avoid unnecessary costs.
You could give up enterprise value.
There is one more way to look at the value that an ERP system provides for an organization. If you were to sell the organization today, a dilapidated ERP system would probably require you to significantly reduce your selling price or even meet with little buying interest. But the opposite could also be true: If you have a modern and future-proof ERP system in use, this would justify a much higher sales price, or at least one that corresponds to the market value.
Consider the company value when considering a new ERP system.
It seems that implementing a new ERP system has many immeasurable, economic benefits, but the truth is that you can validate the actual value of the company. If you want to take the time to relate your ERP selection directly to maintaining and increasing the value of your business, we can help you with our proven business management tools.
We know that the decision to implement a new ERP system can be difficult and that it sounds easier than it is to create additional business value with a new ERP system.
Do you have any questions? Please contact us. We are here to help you!