Aberdeen Research recently released a report entitled “Roll With The Punches: Select Flexible ERP and Be Prepared for Business Challenges.” In it, they highlight key benefits they have documented in organizations deploying what they call “flexible” ERP systems. Among the highlights…
- “Best-in-Class” organizations are 83% more likely to have an ERP solution that can be quickly tailored to reflect business change.
- Those organizations in turn are 59% more likely to be able to monitor regulatory compliance.
- They are 3 times as likely to be able to tailor interfaces to reflect user preferences.
- And they saw a 15% improvement in operational costs as a result of their solution.
Flexible here denotes a system that is “easily tailored to reflect business change.” The concepts of customizable and modifiable come into play, along with the built-in flexibility accorded by today’s more modern ERP systems, which include features like drill-downs, dashboards and business intelligence, and triggers or alerts.
The firm looked at key reasons that companies replace their systems. The two big ones:
- Obsolete technology foundation or infrastructure of their current system
- Lack of features
Aberdeen went on to list the ratios of improvement in operations that were seen by firms who implemented new systems, and their results are notable. According to a table from their August, 2014 research results, they include the following results when companies deployed such “flexible” systems:
- 45% improvement in inventory turns
- 24% change in stock to sales ratio
- 15% change in operational costs
- 13% improvement in administrative costs
- 20% improvement in complete and on-time delivery
- 14% improvement in inventory levels
- 16% improvement in internal schedule compliance
- 19% improvement in cycle time of key business processes
As organizations grow, Aberdeen concludes, it is necessary to change their technology as well. As they note in conclusion: “ERP is the key technology used to support an organization. Ultimately, flexible ERP creates a flexible organization that can take on any new challenges.”
You can download a copy of the full Aberdeen report here.