I read all the time that the “surveys show that ERP systems are the key to improved corporate performance.”
I have a slightly different opinion.
While I believe that standardizing, condensing, purging and streamlining can enhance business performance; I don’t think implementing an ERP system is the cause of all of these changes - and therefore improvements. I think companies that chose to replace their legacy system with a modern ERP solution, are improving their business in many ways besides focusing on the ERP implementation. Lets look at some other possible factors:
1. Companies that put in new ERP systems are probably already making money. Most struggling companies don’t say “lets put in a new ERP, that is our key to turning this thing around.”
2. Companies that put in a new ERP system are improving many parts of their business and the support of a modern, consolidated solution helps in those improvements.
3. This is just a hunch, but most people in leadership that choose to implement a new ERP system have done it before. It happens, but I’ll bet it is rare to have the legacy leadership choose to move away from the legacy systems. More often, there is a change in leadership, ownership, etc. that leads to these changes.
I believe modern systems can definitely have positive affects on the business. However, I think the positive performance of these companies due to many factors.
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