Watch for signs of a data explosion that portend the need for ERP

2/21/2012 at 1:31 pm by The Sage ERP Team

There are many different metrics that companies have to observe to make sure they're on the right track. Particular investments should be scrutinized to ensure that their returns are sufficient to justify them in the first place. Profit margins should be tracked and recorded faithfully to judge the effectiveness of certain tactics. Even staff morale bears keeping an eye on numbers to make sure that operations run smoothly.

However, one unusual feature of modern digital businesses is that they're subject to an interesting phenomenon that requires observation. Data explosions come about when an organization has begun to collect information to help streamline operations and deliver better service. When an enormous amount of data appears and seems like too much to handle, the solution is likely to implement an enterprise resource planning system. Here are some warning signs to keep companies abreast of the possibility of an imminent data explosion.

Overworked clerical staff
The appeal of ERP systems is that they can easily and quickly collect the information that companies generally acquire. A surefire sign of an oncoming data explosion is that clerical staff members have trouble recording all of the information that expanding functions require. For example, if the data entry fields that workers are supposed to use are insufficient for not only the volume, but the variety of information that's being collected, there is an excellent chance the problem would be alleviated by ERP applications.

Difficult projections
The more data that a company has at its disposal, the more easily it can peer into the future and see incoming problems and issues. However, this requires that enterprises are able to organize such information into useful and readable sets. If businesses feel that they have more than enough information to make predictions about the future but are troubled by additional data that doesn't seem to fit into their projection models, it is likely time for an enterprise resource planning implementation.

Clients want more
Despite all the aforementioned situations, the clearest sign that a company should install an ERP system is probably that clients and customers want it. If the data required to do business with particular organizations is limiting the effectiveness of existing business plans, use an ERP system. It should satisfy the needs of even the largest and most complicated organizations.