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ERP software considered competitive advantage

5/10/2012 at 11:55 am by

Enterprise resource planning software is considered helpful for all types of organizations looking to improve their cost efficiency and operations. ERP software is especially ideal for small and medium-sized businesses working with limited resources and in competitive markets.

Market research firm Aberdeen Group recently announced the publication of several industry reports, including one highlighting how ERP is essential for SMBs. In fact, the organization asserted that ERP software allows companies to keep ahead of their competitors. Of the SMBs surveyed, 75 percent said they are currently using such solutions and have noticed significant performance improvements as a result.

Aberdeen also noted how far ERP solutions have come in recent years and how companies are leveraging the technology for a number of benefits.

"ERP began as material requirements planning, and as a result is most widespread in the manufacturing industries, it is now used in organizations of all types and sizes to manage business processes, reduce costs and provide visibility to managers," Aberdeen Group announced.

Planning key to ERP migration

Choosing an ERP migration can be a difficult task for organizations not fully prepared to upgrade their systems. While some SMBs may be eager to adopt ERP software to reduce spending and improve their capabilities, experts agree that such a move should include careful planning. A recent Daily News & Analysis report asserted that all departments of a business should be supportive of an ERP migration and company managers must educate employees on how to effectively leverage the technology so they do not perform tasks with older platforms.

Organizations are also encouraged to ensure potential ERP systems can adapt to their changing needs.

"There's no such thing as 'one size fits all' and it's important you choose a system that can adapt to your business goals and objectives and not the other way round," the DNA report stated. "Vendors may try to change your business practices, but you shouldn’t give in, especially if it’s working for you. The functionality of the system should blend with your business practices."

The news provider added that businesses should identify ERP solutions that can be implemented quickly to ensure a fast return on their investment. Options that do not meet their criteria may cause more harm than good, especially regarding rising costs and potential disruptions.

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The Sage ERP team report on various topics related to ERP and business management.

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