On one hand it is an expense in that you must pay some one for the software, the training, the hardware and your people spend a lot of time setting it up and keeping it running.
On the other hand it is a tool because it passes information freely between departments. It does calculations and holds key information that would normally be in some one's head, so it not only houses but spreads knowledge within your organization. Automating, streamline business processes. No matter what the answer is, how you view it will go along way to telling whether or not you get the most out of your system and whether or not your business is as efficient as it could or should be.
In my experience those that think of it as an expense even a necessary expense don't get everything they can out of a system. These organizations do not embrace the technology as a whole generally and staff struggle to use the system even to a very basic level. They have processes that clearly waste time and money and they have a tool that can help them manage and streamline these processes, but the just don't see the value in investing further in the system. Generally using the bear minimum to get buy.
Those that view it as a tool generally take a very proactive approach to implementation of ERP or business management software. The systems in these organizations are vehicles for continuous improvement. They start out with a clear vision of where there are and where they need to get. They can see the ROI on their investment. Increased productivity, enhanced customer relations and a better flow of information. These companies will often customize or change the system to match their own business processes.
Organizations that use ERP as a tool seem to continually assess and address the flow of information, the productivity of processes and more importantly they continually learn how the system can be used to aid them. They become thirsty for more knowledge and chase after information rather than being told they have to learn this or do that.
The outlook of a company can be bad if they have had poor experiences or have heard horror stories of failed systems. But the reality is the outlook you have going in can have a great effect on what comes out in the end. If your small to mid-sized business has a need for business management software, be sure to:
Understand what your organization needs from a system today and in the future.
Pick a vendor or partner that can provide the support you need when you need it.
Ensure that you organizations mind set is right going in. From the owner down.
Ensure any monies spent are done so because there is pay back?
There is no doubt that there is a price tag attached to business management using software, the question your organization must answer is what is the price tag compared to not having business management software or the proper software.
At some point the pendulum is going to swing and business will be back into full swing, does your company have the tools it needs to stay. Please feel free to comment with your thoughts on this or any other of my ERP Advice blogs topics.
Ken is in the marketing department of IntegrateIT, the solutions provide affordable ERP software to Small Business Contact Ken by email at keybel@integrateit.ca. Request a demo by sending an email. Need some ERP advice or definitions http://erp123.biz/integrate-it/first-time-erp-buyers
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By Ken Eybel
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