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COMPETITIVE ADVANTAGES OF IMPLEMENTING AN ERP

14/10/2013
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Having and integrated Enterprise Resource Planning system (ERP) helps companies to obtain better financial, productive and internal organizational improvements. These improvements should be analysed from different points of view.

 


 

 


First, the economic benefits will depend on the functionalities that the ERP software possesses that we consider. This software should adapt as good as possible to the company requirements, its working circles and its information needs. Not every ERP are the same/equal and, unfortunately, much of them have adopted ERP but actually are – programs + - integrated. They don’t have one of the main ERP’s characteristics: the absolutely adaptation capacity of its functionalities as well as its users interface to the specific needs of each company.

The benefits don’t show when implanting an ERP software. In order to achieve significant improvements, it is essential that the existing Information System has been studied previously and that objectives has been set for improving the system and the organizational culture, redesigning processes and eliminating inefficiencies.

We should also have in mind that developing and appropriate Information System places the organization in the possession of a competitive advantage as it will allow better support to the operational activities and decisions making.

 

The improvement produced by the Informational System and the adequate software election of the product will result in concrete benefits of major incomes and/or productivity profits and the lower costs.

 

Some of the advantages that can be obtained are:

  • Efficient and effective management of the organizational resources.
  • Improves relationships with customers and vendors
  • It facilitates the adaptation of the organization to the market changes
  • Enables the implantation and execution of planning and control efficiently efficiency control and planning systems.
  • Incorporates efficiency and effectiveness in the administrative procedures
  • Allows easy detecting facility threats, opportunities, strengths and weaknesses
  • It helps to reduce corporate risk
  • Generates and accumulates knowledge and experience

These advantages could (must) be perfectly measure and evaluated, obtaining a real ROI of the investment in the ERP.

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