Rethink ERP for better business outcomes

Tech organizations that reframe ERP as a strategic business imperative can improve top- and bottom-line results.

Any technology company willing to think differently now has a unique opportunity to employ enterprise resource planning (ERP) as an organization-wide value creator. How? Abandon the notion of ERP as purely a technical upgrade or software currency implementation. Embrace the idea that — if aligned to the strategic imperatives of the business — an ERP transformation can create a powerful, data-centric, single source of truth capable of reshaping the bottom line and your competitive edge.

Why? From evolving customer preferences to shifting supply chains: the pandemic has exposed countless new risks for technology companies. That volatility is making the need to streamline operations and create greater agility a top priority for tech organizations today. Simplifying operations and processes through seamless cloud capabilities, powerful data analytics and next-generation automation tools can help close the gaps. This is especially true in an inflationary market where every dollar of spend counts even more than usual. A new mindset around ERP holds so much potential today.

Done in the context of a broader strategic vision, aligning and integrating a holistic ERP system in the enterprise can foster meaningful and agile collaboration between IT and the business, unifying and enabling functional departments and leadership teams.

Imagine the possibilities that could create.

Consolidated and standardized business processes. Simplified solutions and access to the functions that drive additional business benefits. Clearer definitions for data and digital trust. Fewer disconnects between teams translating data across departments. Greater ease addressing—and improving—customer experiences. Happier and more productive employees motivated by reduced friction in their daily work. Fewer revenue leaks and a stronger ability to spot trouble in real time.

All these upsides speak to profitability, an ability to innovate and avenues to sustainable, long-term growth.

The business case makes sense. Put in today’s market context, it becomes a burning platform for change. Across the industry, tech companies transitioning from on-premise to cloud solutions will need to upgrade the legacy systems and traditional thinking behind ERPs. Why not do it with an eye to harmonizing business and IT processes and producing additional value?

Step one requires technology companies to shake up the ERP perspective. Stop positioning this as a technical exercise. Start embracing it as a chance to transform the business through a seamlessly connected approach. Put that stake in the ground and declare this the moment that begins to change everything. Then give some thought to how you can address ERP in ways that keep these three leading practices in mind:

1.     Harmonize and transform business processes. Do so by relentlessly focusing on key areas of value that are directly aligned to the organization’s strategic imperatives. These processes should be developed and work in tandem to effectively inform business-critical decisions around the use of artificial intelligence (AI), predicative analytics, process automation and more.

2.    Simplify the IT landscape via cloud solutions. Address this while minimizing deviations from standard. Take advantage of significant new functionalities to provide additional value for your business teams and develop better outcomes accordingly.

3.    Strive for meaningful data that generates a single source of truth. Create an organizational data fabric that knits your enterprise together. Doing so cultivates a single source of truth — a data management principle that prevents redundancy, inefficiencies and errors. Safeguard this source with strong governance and regular compliance checks so teams can trust the information and make mission-critical decisions with confidence.