Your Technology Strategy Must Include Plans for an ERP

No business school degree or even a diploma from the “school of hard knocks” could have prepared business leaders for the numerous challenges they have faced since 2020.

“With nearly three years weathering a global health pandemic, while also facing economic uncertainty and severe staffing challenges, business leaders have weathered unprecedented conditions, even compared to the Great Depression and Great Recession,” said Dwayne J. Clarke, CEO and Chairman of Aegis Living.

And while the World Health Organization lifted the Public Health Emergency of International Concern for COVID-19 at the start of May, there are plenty of problems still facing organizations in 2023 with strategic business advisor Bernard Marr listing these seven specific challenges:

• Inflation and economic downturn.
• Supply chain security.
• Increasing customer expectations.
• Accelerating digital transformation.
• Historically tight labor market.
• Cyberattacks on the rise.
• Sustainability demands.

“When devising a business strategy to cope with this, one word springs to mind – resilience! We need to build flexible businesses with the inner strength to adapt to anything the world throws at us,” wrote Lucy Thorpe for ERP News.

ERP Systems Can Provide Resilience and Agility

Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.

Businesses are finding that their technology strategy must include plans for an ERP as the software is essential to provide resilience and agility when challenges arise.

“Whether you are looking at finding a new ERP platform or implementing automation around your existing one there is plenty of scope for improving resilience. You can take steps to unlock the business value in the data you have been storing for years to create a business that can ride out the current storms – in time it may also be able to start to navigate itself,” wrote Thorpe.

Companies Can’t Afford Business Strategy Complacency

Companies that do not embrace the acceleration of digital transformation risk their business falling behind competitors, especially when the next unexpected disruption hits.

“It doesn’t take a global pandemic to turn a company on its head and force it to rethink its business model, processes, and the technology that supports its operations,” says Oracle. “Supply chain interruptions, catastrophic weather events, and natural disasters can all exact a toll on organizational productivity and profitability … companies can’t afford to get complacent about their business strategies.”

Thorpe acknowledges that economic uncertainty will have some enterprises throwing the brakes on technology spending but advises that doing nothing is not an option.

“Digital will help build more sustainable, resilient, responsible, scalable, and profitable businesses with huge benefits to the people that work in them. So, extend your ERP and financials with leading-edge automation and digital workflow intelligence,” says Thorpe. “And it is not dependent on your size – from enterprise to mid-market everyone is looking to reap the advantage of improved business systems.”

10 Reasons ERP Must Be in your Technology Strategy

Implementing the right ERP software can contribute significantly to maintaining resilience and agility for companies facing various business challenges, both today and tomorrow.

Here are 10 reasons that ERP must be in your technology strategy:

• Data centralization and real-time visibility: ERP software integrates and centralizes data from various departments, enabling real-time visibility into operations, inventory, financials, and more. This holistic view gives all organizational departments a unified and accurate picture of the business and helps companies quickly identify challenges and make informed decisions.
• Supply chain management: ERP systems provide end-to-end visibility across the supply chain, enabling companies to proactively address disruptions, optimize inventory levels, and identify alternative suppliers or logistics routes.
• Demand forecasting and planning: ERP software can analyze historical data, market trends, and customer behavior to generate accurate demand forecasts. This helps companies adjust production, procurement, and distribution plans, ensuring adequate inventory levels and reducing the risk of stockouts or excess inventory.
• Resource allocation and optimization: With ERP, companies can efficiently allocate resources, including materials, equipment, and human capital, based on real-time demand and production requirements. This flexibility allows businesses to adapt quickly to changing circumstances.
• Collaboration and communication: ERP systems often include features for collaboration and communication, facilitating seamless interaction among teams and departments. This enhances agility by fostering quick decision-making, problem-solving, and sharing of information across the organization.
  
  Oracle says the pandemic was a stress test on remote work management and collaboration: “Reality hit hard when organizations began to have difficulty managing critical processes with a remote workforce. Closing the books is just one example. Companies using basic accounting software, like QuickBooks, or an outdated ERP system, learned quickly that their standard approach wasn’t feasible with the entire accounting team working from home.”
• Business process automation: ERP software automates routine and manual tasks, reducing human errors and accelerating processes. This streamlines operations, enhances efficiency, and enables companies to adapt to changes faster.
• Financial management: ERP systems offer robust financial management capabilities, including budgeting, forecasting, and cost control. These features provide companies with financial visibility, enabling them to make informed decisions, optimize expenses, and mitigate financial risks.
• Regulatory compliance: ERP software helps companies maintain compliance with various regulations by incorporating specific modules or functionalities. This reduces the risk of non-compliance penalties and ensures resilience in the face of changing regulatory requirements.

Oracle says compliance is an increasingly complex issue: “Complying with changing rules and regulations is a major headache for both public and private companies. Recent revisions to Generally Accepted Accounting Principles (GAAP) have pushed many organizations to reconsider processes typically handled with spreadsheets.”

• Enhanced customer service: ERP systems integrate customer relationship management (CRM) functionalities, allowing companies to manage customer interactions effectively. By maintaining a comprehensive view of customer data, companies can provide personalized service, address issues promptly, and adapt to changing customer needs.

• Scalability and flexibility: ERP solutions are designed to scale with the company's growth and adapt to evolving business requirements. They can accommodate new processes, products, or locations, allowing companies to expand and pivot their operations seamlessly during challenging times.

Oracle says that companies that grow will be challenged without ERP systems: “Companies that initially rely on QuickBooks, spreadsheets or another basic accounting system generally outgrow those solutions as they scale and add complexity. When these organizations open additional locations, add subsidiaries and/or start handling multiple currencies, the need for a more robust, enterprise system increases exponentially.”

It's worth noting that while ERP software can significantly contribute to resilience and agility, successful implementation and ongoing maintenance are crucial for optimal outcomes.

Companies should carefully assess their specific needs, select the right ERP solution, and invest in employee training to fully leverage their capabilities. Need some help? We can help make this process painless. Reach out if we can help you.