Today, with theadvancement in science and technology, when all the businesses are looking forexpansion, ERP is in major demand and is gaining importance due to its multipleabilities to deal with complex problems and provide solutions at one go.
Reduced cost is inversely proportional to the revenue and the profitability ofa firm. Tasks become tedious and time consuming if performed daily. Cloud basedERP systems can be used to access information, automate the tasks, can make useof a subscription model that can divide the cost into small chunks, can providea single database and thus can give a holistic view of the business operationsat any time to the employees.
Many companies are gaining a competitive advantage with theimplementation of ERP systems. The top 3 ERP vendors include SAP, Oracle andMicrosoft.· ‘TalkingRain’ – a beverage distributor is expanding and generating a double digitgrowth with its ERP Solution – Microsoft Dynamics NAV and has the entirecompany information in a single system rather than in multiple spreadsheets.
· ‘Colgate Palmolive’ has adopted SAP ERP system and hasimplemented various modules such as supply chain management, human resourcemanagement, order processing, and production management and employeeinformation.· ‘DaimlerChrysler’ has adopted SAP ERP products and has taken care of finance,manufacturing and logistics management.· ‘FedExAir Company (Fed Express)’ is using Oracle ERP for electronic procurement,spending report and other activities. It has also used PeopleSoft assetmanagement module.
· ‘Accenture’runs on SAP and is now providing SAP Cloud based services (IaaS, PaaS) bridgingfrom the SAP core technologies to the cloud.· Similarly,’Oracle’and ‘GE’ run on Oracle Apps and have implemented various SCM, CRM and Financemodules and are now moving towards cloud. All these competitors have gained huge advantage and haveseen rapid growth after engaging with ERP systems and in order to survive andgrow in this highly competitive environment, it has become a necessity toinclude ERP in the business.
The growth of a business depends on all the segments and notjust one, be it sales, operations, inventory, marketing, human resources,finance or IT. Managing each and every segment separately becomes a tough taskand lacks synchronization which leads to inconsistency. A system is neededwhich can integrate all of these into one and can prove out to be advantageousfor the employees as well as for the business.
Employees will have access tothe up-to-date information, can alter or correct inconsistent data, can helpcustomer solve their queries, automate various repeating tasks, can ease downthe accounting and financial reporting. Cost reduction will happen by the useof a single software instead of using different softwares for differentpurposes. Also there will be an increase in the sales along with a positivecustomer experience. High performance will lead to high productivity which inturn will help the business to grow.