There are many reasons companies implement ERP systems, but one of the biggest ones is to bring all of their systems together into one central solution, all the way from accounting to HR.
This need for change could be driven by various different concerns. Maybe you have outgrown your current software. Maybe your company is dealing with disparate systems that do not work well together. Perhaps your supply chain is inefficient and you need a better handle on inventory management. Maybe all of these things are true.
Whatever your specific needs, Enterprise Resource Planning (ERP) software can help you transform your business as part of a digital transformation. ERP can support your greater effort to add value to and improve your business through advanced technology.
So, when you set out to increase the efficiency of your organization, you will likely find that an ERP system will help you achieve this goal — along with other efforts.
CIO.com describes digital transformation as the “application of digital capabilities to processes, products, and assets to improve efficiency, enhance customer value, manage risk, and uncover new monetization opportunities.”
Digital Transformation is not the same thing as Enterprise Resource Planning. ERP is essentially the platform on which the digital transformation initiative is launched.
Digital transformation is reimagining the human experience. It is remaking how people live, work, play, and connect. Everything is being rethought, simplified, and improved — even things people have taken for granted throughout their lives.
An great example of digital transformation is in the retail industry. Years ago, consumers would travel to a physical store, shop for clothes, try them on, and purchase them. These days, retail — like many industries — offers many channels to their customers. We have the ability buy clothes online, try on clothes in a store and later purchase them online, reserve clothes online and pick them up in-person — and that’s just one element of the experience. Buyers can even get personalized recommendations before they ever set foot in a store and pay via their mobile device. Needless to say, this digitally-transformed business model also transforms the customer experience.
Uber may be the best example of a successful digital transformation. Uber took a long-standing industry and completely reinvented it. The taxi industry has been around practically since cars were invented — even before then, when people purchased or traded for rides on horse-drawn carriages and wagons. Through digital transformation, Uber disrupted the norm and forced the entire industry to evolve to compete with Uber’s ride-sharing technology.
Uber’s offering is not a physical product. Uber sells a technology that exists on your phone, your computer, or your laptop browser.
Today, many cannot imagine traveling or navigating a city without the use of Uber. Uber has completely changed people’s lives. People are fully dependent on this technology, whether that be as a means of transportation or a means of employment.
ERP News explains the role of ERP in an organization’s digital transformation like this: “ERP has a major impact on digital transformation. It has the capability of bringing revolutionary changes in various processes of modern business.”
It’s true. Digital transformation is about changing your organization through significant process improvement by giving your customers, vendors, and stakeholders the greatest flexibility in interacting with your business. ERP software integrates all aspects of your business operations, leading to greater efficiency, speed, and customer satisfaction. Put simply, your ERP software is the platform for your digital transformation.
Without an ERP platform that helps with integrating orders, inventory, accounting, returns, shipping, etc., making the next leap towards transforming your customer’s experience will be impossible. Having a software platform to spring from makes the next steps of transforming how your employees, customers, and vendors more easily interact with newer technology without disrupting your industry or geography.
We help individuals go through this process of determining what they need to do with their software, what the benefits of changing are, and then specific apps to go with. And then making sure implementations are a success — that's ultimately what we're all about. We don't let our clients spend a dime without ensuring that it’s going to meet their business goals.
Questions about how an ERP platform can transform your organization and support your digital transformation? Contact ERP Advisors Group at 866-499-8550. We advise businesses every day on how to invest in the right ERP solution to achieve their digital transformation and other goals and can do the same for you.