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Focus Research Insight: Some 41% of buyers are researching ERP to consolidate multiple systems…
In a recent study, we found that nearly half of those considering a new ERP solution are doing so with the intent of unifying or streamlining their current systems. Another 30% claimed their initiative was to improve organizational efficiency. Clearly, system consolidation is a specific type of efficiency, so it follows that most buyers see ERP as a critical platform to DO MORE WITH LESS. But, what about that investment? An ERP conversion can cost a significant amount of money, to say the least. So, where do you see the efficiency really making up for the cost? Where should buyers look for the REAL ROI in ERP?
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The real ROI in ERP is not achieved by modifying, replacing, or integrating these applications. The cost, risk and disruption is too great and no practical ROI can be expected.
Instead companies should utilize the next generation of enterprise software which leverages their existing systems. These "old" systems stay in place and all of the control and management they have established is retained. The "new" systems then build on top the missing process, data and technology business needs but cannot achieve with the old system. These needs arise from a number of areas including compliance, regulation, competition, customer demand, new product lines, new geography, M&A, etc.
Toyota had a need to increase accuracy to meet corporate standards. Their ERP was not able to support the process, data or technology to achieve the goal. Without replacing, integrating or modifying in anyway that system (JDE) they were able to not only meet 6 Sigma accuracy in their operation but they also accidentally increased productivity by 290%; all in one week.
To achieve real ROI in ERP leave your existing systems alone. Build the operational innovation business constantly demands with the next generation of Enterprise Add-On solutions. They are proven, non-disruptive, agile and support a try it before you buy it approach that allows you to measure true results before committing to a solution.
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