Business Case for an ERP

Enterprise Resource Planning (ERP) Systems have evolved from stand alone IT solutions for discrete functions to fully integrated application encompassing the entire organizations and in cases its stakeholders. Islands of automation have evolved over the years - there is a separate system for payroll processing, another system for supply chain management and yet another system for production management, all having batch feeds the finance module.

The tough decision today's IT managers (and hopefully business leaders) face is to build a business case to move to a new system due to multiple issues - high cost of a new ERP system, risk of delayed or flawed implementation, lack of effective maintenance and support, lack of internet ready features and most importantly loss of control over individual applications.

What is required from the vendors is that they partner with the organization from the first step onwards i.e. help them build the business case that address all the concerns. Both the product (ERP application) and the service (implementation and maintenance) have to be right for a smooth transition.

Newer applications in the market have all the functionalities on a common platform and have plug and play features as well as scalable architecture allowing for phased roll outs helping ring fence the impact of the change, thereby mitigate the risks better. Second, an internet based solution allows for significantly lower cost than a traditional ERP as well as remote maintenance from a centralized location. This ensures minimal IT staff at the client site and experts ready to solve the tickets in the shortest time.

Go out there and build your business case for a new Enterprise Application.

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