The Value of ERP As an Organizing Force

In concept, the more robust enterprise resourcechanges right along with them. Therefore, ERP
planning solutions (ERP) combine data and processesimplementation can be seen as way organizations
by using integrated software and hardwarebuild relationships; to perform effective, repeatable
components and a unified database to captureprocesses; to drive efficiency into every process;
information from all areas of an organization. Ofand to share information accurately and as needed.
course, the most immediate use of ERP solutions inAnd, of course, to drive profits to greater success.
business is found in applications for manufacturingIn short, top-tier ERP applications will directly link the
(discrete and process). An ERP solution must bespecific attributes that inform the positive financial
many things to many people within an organization,performance of the business. By connecting the
but at its base it should be both scalable and flexible,application functionality to business-process
as well as transparent to end users even as itimprovements in all areas of the manufacturing
continuously works in the background.operation (including finance, production, supply chain
ERP functions through the ordering of businessmanagement, customer relationship management,
processes that are themselves organized accordingdata warehousing, and human resources), the entire
to common business flows (i.e., lead-to-order,organization benefits in terms of operational and
order-to-cash, purchase-to-pay, etc.). Such unified andactionable intelligence. In this regard, ERP is more than
consistently flowing business processes are producedjust business communication.
through core applications that are usually built, in ERP,With the power of the comprehensive inclusion of
on a single platform to help consolidate informationbusiness data, ERP becomes an organizing force for
and reduce IT costs. Doing business today-particularlymanufacturing, and ultimately provides efficiency
manufacturing business-without ERP is tough, and issolutions that are otherwise difficult to imagine. To
at best much less efficient when viewed through thethe extent that ERP is a totalizing tool designed that
very focused lens of bottom-line metrics.easily integrates diverse data, the single source
What does ERP do? It helps to organize the varioussolution approach offers the best and most efficient
factors found within emerging and presentmethod for organizing and interpreting such data.
opportunities, and can:Summary: A good ERP solution can offer a strategic
- Improve productivitylink between business objectives and IT, and do it in
- Enhance financial performancesuch a way that drives profitability and productivity.
- Streamline processes and workflowsERP organizes real time data from all areas of the
- Improve reliability of tracking and forecastingmanufacturing operation. In doing so, it provides the
- Lower production costscapability of making informed decisions rapidly, and
- Improve customer service (CRM)with information that is both timely and relevant. In
To these ends, a good ERP solution offers aturn, such decision-making capabilities resulting from
strategic link between business objectives and IT. AsERP produce improved productivity, improved
well, it can be justified to management in veryfinancial performance, lower production and
measurable returns. A robust ERP solution isadministration costs, enhanced forecasting, and
configurable at the business-process level so that asimproved customer service.
company objectives change, the ERP solution