ERP – One Truth

ERP – One Truth

Many growing organizations, especially those experiencing fast growth through acquisition, struggle with disparate systems and the costs it encounters. Costs are piled on through such roadblocks as:

  • Duplicate Data Entry
  • Data Corruption
  • Incompatible Systems
  • Increased IT Support and Development
  • More & more training for support of multiple systems
  • Difficulty in accessing information
  • Timely information
  • And much more

The pain from operating disparate systems can be felt throughout the entire organization. From the front line customer support associates who need timely data to address the needs of the customer to the senior executives who demand timely information to make critical business decisions.  Easily accessible data that is timely as well as accurate is critical to the successful growth of an organization.

With a truly integrated ERP (Enterprise Resource Planning) approach, an organization that grows through acquisition (or otherwise) can control the process of information/support & growth by linking all departments together. This increases productivity, reduces the overall costs by creating efficiencies as well as increasing bottom line profits.  A centralized ERP can create a boundaryless organization that delivers critical business information for fast, effective decision making.

Understanding how to simplify the business process requires an organization to not only understand the benefits of a single system, but believe in those benefits as well.

  • Cost Reduction – Typically a company’s largest cost (besides headcount) is IT. With multiple, disparate systems a company is saddled with increased support costs, increased licensing costs, increased implementation/integration costs, increased training costs as well as increased hardware costs. There are more to be sure, thus, a single system will go a long way to virtually eliminating these costs over the long term
  • Eliminate Duplicate Data – When you support multiple systems the risk of duplicate data or even data integrity is high. Multiple systems can often mean different data schemes increasing the likelihood of poor information. It also increases the need for manually built reports as information is pulled from one system to the next. In a single system approach, data is entered consistently throughout the ENTIRE organization. Data integrity is almost always assured as there is a SINGLE source for data entry/storage.
  • One Point of Control – A single system allows an organization to have all business processes in one place. This can simplify workflow, increase productivity and make the entire organization more efficient.
  • Reduced Technology Spend – With a single system maintenance is reduced, training is simplified, support becomes more efficient, even the path to upgrade is made easier; rather than juggling all of the issues across multiple systems a single system allows the team to become much more targeted in their approach and learning.
  • Reporting to the needs of the Business – Responding to the ever changing needs of the business has always been a top IT challenge. Timely, detailed reports are critical to the business in order to make proper decisions. Analytics through a daily dashboard, as an example, can help a business to make rapid decisions. A single system can offer an organization the agility to navigate through the changing business requirements with flexibility.

Many organizations have touted the ability to integrate disparate systems and truth be told, this can be accomplished. But it does come at a great cost. Far more efficient as well as effective, the single system ERP allows an organization to manage their business in a simple manner (or as simply as possible). The benefits of such can lead to pain free and efficient growth.

Jim Toporski

Digital Business and Information Technology Expertise | CPQ | OCC | Program Management | Manufacturing | Healthcare | Team Leader

8 年

Good thoughts. This is even more important for global organizations.

Wayne Sadin

CIO of PriceSmart, the only operator of membership warehouse clubs in Central America, the Caribbean, and Colombia

8 年

#ERP data & process integration creates efficiency, but done wrong decreases #agility

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