New Business Systems – But why, exactly?
The reasons for choosing a new ERP system have not changed significantly in recent years. The four most common drivers remain:
- Replacement of outdated technology / upgrade
- Streamlining of business processes
- Improved data foundation
- Implementation of a standardized model
That the first three reasons are cited most frequently is not surprising. What is interesting is that the desire to implement a standardized model across business units is becoming increasingly prevalent. Many companies’ wish to replace their ERP system in connection with an upcoming and demanding upgrade is, in many cases, driven by implementations that contain too many system customizations and too few process adjustments.
A company’s ERP system is often a crucial prerequisite for realizing its strategy!
The main reasons companies choose to implement a new ERP system can be divided into two primary groups:
- Business-related reasons: The company wants to streamline business processes and create improved management information.
- Technological reasons: The new system must replace outdated and often custom-built solutions that no longer sufficiently support the business, and which lack the scalability needed to follow the company’s growth.
The two groups are closely connected, because ultimately it is about the system’s ability to support the business and its strategy, enabling the company to realize its vision and goals. It is therefore striking that only few consider ERP implementation to secure the company’s strategic positioning. While an ERP system is rarely part of the strategy itself, we would argue that a company’s ERP system is often a critical prerequisite for executing the strategy.
