What are the business “pain points” that an effective ERP solution addresses?

What are the business “pain points” that an effective ERP solution addresses?

The stress posed by the increasing pace of change in the competitive environment is encouraging firms to rethink their use of management and reporting resources. And the same holds for business growth as firms move to the next level of size, complexity, and performance obligations. International expansion or potential mergers and acquisition decisions can also place new demands on organizational resources. Something as basic as working with multiple currencies and localized legal requirements (including taxes) can be especially challenging. Companies, in part because of their success, can feel that the business is getting out of control, especially if different systems have evolved over time. This can show up as a difficulty closing the books in a timely way, an inability to tie financial results to inventory, or an inability to quickly bring forward profit and loss, balance sheet, and cash position reports. The need for a “single point of truth” can also be apparent over time in growing firms, where there may be multiple pockets of information that are assembled independently. The ability to coordinate and align multiple information streams in a way that’s compatible with growth (i.e., a scalable solution) is essential if managers are to understand and guide operations. In addition, companies of all sizes can face a lack of data-driven insights when making decisions and identifying potential opportunities and risks. They can be challenged with tedious, sometimes duplicative manual processes that slow employees down and ultimately impede cash flow. Organizations can also face new requirements that push the limits of existing IT solutions and tools. Having multiple processes for the same pieces of information across the business means managing the information workflow twice, recreating data points and additional audits of the business processes. One point of truth, transparent to the entire organization, removes redundant workflows and allows the organization to quickly move to fact-based decisions.

 

Source : IDC ANALYST CONNECTION
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