Introduction
When it comes to ERP software, organisations are sometimes hesitant to implement it or change their current software. This can decrease costs in the short-term, and organisations do not need to disrupt their current ERP processes, however, in the long-term, it could negatively impact the productivity of a business. But what exactly are the reasons why organisations are hesitant or undecided when it comes to updating their ERP?
Organisations that do not have an ERP system
Some of the reasons why organisations do not currently have an ERP system include the following:
- The business is too small in their eyes
- Those businesses believe they can function without it
- They feel the cost of ERP systems is expensive
- It takes too much internal effort to implement
There are most definitely smaller businesses out there, however, there are many cost-effective ERP solutions and systems that are designed to cater to smaller businesses. Furthermore, if you are one of these businesses that think you can function without an ERP system, you run the risk of hindering your growth due to your lack of technology.
Challenges associated with not implementing an ERP system
Many organisations have admitted that they face challenges due to not having an ERP system in place. Challenges can include:
- Redundant & inaccurate data
- Business systems that cannot interact
- Business processes that cannot be tracked
- Data that is difficult to share
- Data that does not have the capability for collaboration
The overall challenge that these businesses are facing is the lack of visibility. Thus, they do not have the ability to track their data in real time and make informed decisions when they need to be made. Moreover, not having an ERP system can make internal and external engagement more difficult.
Organisations that have an ineffective ERP system
On the other hand, there are companies that have an ERP system, but they feel it is not producing the results that they require. These organisations are experiencing:
- Obsolete technology
- Lacking features
- High maintenance costs
- Technology that is not tailored to the organisation and its changes
- Lacking resources
However, there are also companies that feel that they are satisfied with their ERP system, but they are searching for new functionality, more ease of use, better flexibility, and emerging technology.
Why organisations are in need of an industry leading ERP system
Not having an up to date ERP system can cause you as an organisation to not thrive or reach your full potential. Companies that have invested in the latest ERP system experience:
- Reduced outstanding sales
- On-time delivery
- Schedule compliance
- Inventory accuracy
- Higher levels of customer satisfaction
- Real time data
- Business analytics
- Social business capabilities
- E-commerce functionality
- Accurate financial reports
Effective ERP systems allow you as a business owner to keep up in this ever-changing business environment. Furthermore, every person in the organisation will have access to the company’s data whenever they need it as most ERP systems of today come with mobile compatibility. All in all, having the right ERP system for your business will allow your business to implement the best possible practices and solutions.
Invest in the right ERP system
At the end of the day, you cannot afford to get left behind by not investing in an ERP system that will take your business to the next level. By adopting an upgraded ERP system, you will be able to be miles ahead of your competition.
Find out how Lorge can offer you the ultimate ERP solution
