Since every organization is unique, there is no single and definite indicator that tells you when you need to invest in an enterprise resource planning (ERP) system. If the following characteristics describe your organization, perhaps it is time to consider investing in an ERP solution.
1) Your organization needs to store large quantities of data
In this age of instantaneous information collection, both large and small firms have gained access to large quantities of data. A recent report by Software Advice stated that 59 percent of small-business respondents said they were considering ERP solutions based on their need to better integrate data collected from various business processes.
2) You have lots of different software for different processes
Does almost every department at your organization have their own software system for completing tasks? ERP software integrates these systems so that every business function relies on a single database. With one source of information that contains accurate, real-time data, an ERP solution breaks up information logjams, helps staff make better decisions more quickly and frees up their time to focus on key operational practices.
3) Your IT is becoming very complex and time consuming
One of the biggest downsides of having multiple systems across your organization is that IT management can become a nightmare. Customizing these systems, integrating them and maintaining them with patches and upgrades can be complex, costly and use critical time and resources. Instead of adding more software—and complexity—to an already ineffective system, ERP technology can give you the agility to respond to changing business needs rapidly.
4) Your organization is growing
If your current IT system is unable to encourage and facilitate organizational growth, you should consider investing in an ERP. Since many are scalable and have features that promote organizational growth, implementing an ERP could be a great step towards growing your organization.
5) You’re having trouble extracting important data
With information being one of the most important sources required for making organizational decisions, it is key that management can retrieve data easily when needed. If you’re finding that your information extraction process is wasting valuable time, it’s best to start looking for an ERP system. These systems streamline the flow of data through the organization, allowing for simplified collecting, transferring, and analyzing of data.
6) Your operations involve manual processes
Are your employees required to manually insert important data or are you dependent on specific employees to complete the task? Do your employees deal with operational processes that require additional products for inputting financial and accounting information? Are you having trouble keeping track of paper documents, finding information, and keeping details secure and in order? ERP solutions can automate these processes, allowing you to install electronic payments, orders and alerts, automated data capture, and making you less prone to mistakes occurring from human error.
Want to learn more about how to choose an effective ERP system? Download our free eBook "11 Ways to Recognize an Epic Accounting System" below.