ERP, An Intelligent Tool For Business Success

Sudhir Nair

It is not a surprise that enterprises all around the globe are relying heavily on ERP systems as a cost efficient alternative to their legacy software systems. Till recently implementation of an ERP system required high financial investment. However, many mid-market organizations are implementing web-based low-cost ERP to manage their business process smoothly and effectively.

The selection of ERP system that suits a company’s requirements plays an important role in its success rate. An ERP system deployed should provide an organization with a solid foundation, incorporating all of the fundamental aspects of running its business. What we all must remember is, if the ERP system deployed  is a good fit for the organization, they stands to gain tremendous cost savings and service improvements across the enterprise.

Implementing an ERP system has many advantages. A successful ERP implementation can reduce costs in three primary categories: inventory costs, manufacturing operating costs and administrative costs. It has been roughly calculated that an ERP system can bring down average 15 per cent expenses on the above categories. Its benefits are myriad and go beyond the tangible cost reductions. It can improve an organization’s customer service and response time when solving issues. It can solve issues of interoperability among multiple locations. It can standardize and accelerate all business processes in a company including in its plants and other manufacturing sites.

The direct advantages include improved efficiency information integration for better decision-making, faster response time to customer queries, etc.

The indirect benefits include better corporate image, improved customer goodwill, customer satisfaction and so on. Some of the benefits are quantitative (tangible) while others are non-quantitative (intangible).

With the implementation of an ERP system all manual processes in the enterprise are automated, production scheduling is more efficiently managed and inventory is more accurately assessed. Also, business performance can be measured in a much more holistic fashion than ever before. This gives executives real-time visibility into all business processes, enabling them to make better strategic decisions.

There are a number of factors that contribute to a successful ERP implementation process. It is very important to carry out a thorough analysis of the ability of applications to meet core business process needs and identifying gaps between core needs and existing application’s features and functionality should be documented well with alternatives, including estimates of all resources and schedule impacts.

Basically ERP system is a complex application when it comes to handling multiple functions. Earlier many of the ERP packages available in the market were more prone to serving individual functions. Even though some of them served multiple functions they did not always cater to different functions from different category. However, this scenario has changed now. Many of the ERP system today has been transformed into web-based or cloud-based system that could not only integrate different functions from different departments but also different function from different branches and places.

Customers are moving from best-of-breed to a best-for-business approach, implying that they prefer extensions to their existing ERP for applications like planning and optimization, business intelligence and knowledge management. This has resulted in the emergence of reliable indigenous ERP,systems with their latest web-based and cloud-based ERP packages that suit large organizations and SMEs alike.


Increases organizational transparency and responsibility Accurate and faster access to data for timely decisions Can reach more vendors, producing more competitive bids ; Improved customer response Saves enormous time and effort in data entry More controls thereby lowering the risk of mis-utilization of resources Facilitates strategic planning Uniform reporting according to global standards