Competitive advantages about using an Integrated Management System or ERP

Having an Enterprise Resource Planning (ERP) helps the company to have a financial and productive improvement and a better internal organization. These improvements can be analysed from different points of view.

In the first place, the economic advantages will depend on the functionality that the ERP we choose has. This ERP has to be adapted as well as possible to the requirements of the company, its workflow and information necessities. Not all the ERPs are the same, and unfortunately, most of them have taken the acronym ERP but they are invoicing programs with an accounting system, or only a program with project management, but without the accounting system. They do not have one of the main characteristics of an ERP: the full capacity of adaptation in its functionality, in its user interface and in the specific necessities of each company.

The monetary profits do not appear by simply installing an ERP. To get significant improvements, it is important that the existing information system has been studied. It is also important that you have thought about improvement objectives in the system and organizational culture by redesigning processes and removing inefficiencies.

We also have to consider that having a proper information system places the company with a competitive advantage because it will give you better support in the operating activities and decision-making.

The information system improvement and the choice of the right software will produce specific benefits of greater incomes and/or productivity earnings and cost reduction.

Some of the advantages that you could get:

  • Efficient and effective administration of the company resources.
  • Improvements in the relationship with clients and vendors.
  • Better company adaptation when you have to face changes in the market.
  • A planning and control system is implemented and executed more efficiently.
  • The administrative processes are efficiently and effectively incorporated.
  • Threats, opportunities, strengths, and weaknesses are easily detected.
  • The company risk is reduced
  • Knowledge and experience are created and gained.

These advantages can (must) be perfectly measured and tested by obtaining a real ROI on investment in the ERP.



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