Best reasons for integrating eCommerce into ERP

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 by Curt Smothers

Think of ERP (Enterprise Resource Planning) as the glue that binds the different computer systems for a large organization. So, is ERP more cost effective than running an eclectic silo of individual software applications? The answer is yes and here are threemain reasons:

1. Individual software applications, even if networked within separate departments, for obvious proprietary reasons, do not interact. ERP does.

2. The growth and proliferation of ad hoc business and manufacturing solutions work fine in their orbit but are of little use and applicability across the entire organization. Upgrades and maintenance of ERP software can be applied across the organization.

3. Individual applications cannot be customized without clunky workarounds. Those applications frequently hoard valuable data inaccessible to marketers, financial planners, and other key players in the organization. ERP software is made to order for the organization.

Key cost and business advantages of ERP over individual software use

So, the bottom line is that without ERP the organization's business activities are either slowed or lack the optimization to keep it competitive and moving forward. Here are another three essential advantages of ERP over individual computer systems:

1. With thoughtful and well-designed ERP integration, business information moves and is shared across the organization. For example, known or estimated product development costs become part of the financial planner's repertoire. Does a new product require employee training and development? Now the Human Resource Team is privy to the data.

2. Whether the transaction involves purchases, sales, or supply pipeline administration, the data is kept in a single database, rather than spread out among individual software applications. Standardization of business processes and reports soon become common denominators in the business culture.

3. ERP is the gateway to taking full advantage of business analytics and harnessing the power of big data for business innovation, better customer feedback and communications. Every ERP process and transaction becomes part of the organization's treasure trove of actionable business intelligence.

ERP software is only an accessory

For ERP software to accrue its inherent advantage over multiple software, the organization must have the right processes in place. ERP software melds into processes and those processes transform the organization to become more productive, efficient and profitable.

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