IT Agility in ERP and its impact on Business Outcomes

What is ERP?

Enterprise Resource Planning or ERP was a term first coined in the 1990s and referred to a process that was designed to help mainly manufacturing companies handle their material requirements and manage more effectively, their demand and supply chains. In fact, the earliest ERPs were relatively simple software programs that were capable of integrating with other systems across different departments within an organization.

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These systems began to increase in scope and complexity with the rapid growth of IT and Computer Technologies and gradually systems that were earlier thought capable of handling only back-office functions began to make their appearance in integrating front-office tasks as well. The 21st Century saw the unprecedented explosion of the Internet and ERP solutions saw a proportionate increase as well – to the point where today they form an indispensable part of an organization’s working structure – regardless of the size or domain of the said firm.

Modern ERP software is designed to fully automate the sharing of vital information across departments, avoid unnecessary duplication of data and provide data integrity in facilitating informed decision-making. This allows for a significant increase in productivity, organizational efficiency, and ROI.

The need for Agility:

The technology landscape is changing at an almost unimaginable pace. What was once “cutting-edge” is now outdated. Even advances made in IT and IT infrastructure at the start of the pandemic are now ‘par for the course’ and will soon become outdated. In such a scenario, businesses using ERP software and solutions to automate and manage their operations are perpetually vulnerable – unless the tools in question are adaptable and capable of quick, seamless and effective upgrades to match evolving market needs. For organizations that find themselves stuck with traditional ERP solutions, this is easier said than done. To achieve upgrades and system improvements, reconfiguration or complete replacement of the existing technology is often the only way of achieving IT agility in the ERP. Post the pandemic, this has become even more important as global markets are currently at their most volatile.

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IT Agility in ERP Software:

Having an Agile Framework in your IT Infrastructure refers to the capacity of a software system to handle uncertainties. When an organization achieves IT agility in ERP, it is able to swiftly adapt to challenges and respond to opportunities. Traditional or ‘Legacy’ ERP systems have long since reached their peak maturity and organizations still reliant on them need to urgently replace them with systems more suited to modern technology.

What are the signs that your organization needs to make its ERP and IT more Agile?

1. High Operational Costs: The most important ‘tell-tale’ sign that your ERP solution might be outdated and obsolete is the very high costs of operations. Organizations that find themselves stuck with traditional software and ERP solutions, end up needing to hire a larger workforce than required – a process that inevitably drives up overhead costs.

2. The Software no longer satisfies its intended purpose: This is a stage that every small to medium firm goes through, as it expands its operations and business. The business management solutions that are in place are typically designed to match/satisfy the organization’s original needs and are not compatible with growth and changes. This is another reason why IT and ERP solutions need to be inherently agile.

3. Lack of Access to Critical Data and Insight: It is often said that in the modern world, Data is the ‘New Oil’. We live in a digital world as much as in a physical one and for an organization to survive and sustain itself, it is extremely vital that it has regular and unfiltered access to data and valuable business information. Only then can business decisions be sustainable and effective. If you find that there is a certain amount of constraint in this, understand that your IT infrastructure
and ERP needs to be urgently upgraded.

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Benefits of ensuring IT Integration in your ERP Software:

1. Increasing Organizational Efficiency: The more an organization grows externally, the more its internal workflow grows. This is when the need for IT Integration starts to get felt. The primary function of any ERP system is to ensure the centralization of all work-related data – even if that data is from different departments. Once IT integration in ERP Software is ensured, systems can use advanced tools such as Data Analytics, Artificial Intelligence, Machine Learning, and Process Automation to dramatically increase operational efficiency. This also has the impact of greatly reducing Human Error, thus increasing Data Accuracy.

2. Increasing Employee Creativity and Innovation: An organization only grows if it has a highly motivated workforce that is capable of innovative thinking. This is where an Integrated ERP Solution is most useful, as it enables employees to focus on ‘Value Creation’ activities while taking care of tedious and repetitive tasks.

3. Match and surpass Customer Expectations: Thanks to Globalization and widespread Technology, markets have become hypercompetitive. Meeting and surpassing a customer’s expectations is today more difficult than it has ever been. With so many options to choose from, a customer is typically spoilt for choices. This is also why it is vital that an organization looking to succeed, cuts down its Order/Service Processing Time, to ensure repeat sales. This is where an Integrated and Agile ERP Software Solution can help as it automates your order management or service processing workflows, lets you complete multiple processes together, and improves internal communications while reducing redundant back-office administration tasks. This improves the overall business productivity and enables you to serve your customers better and improve sales.

Choose the best ERP Solutions for your Business: While there are several excellent Agile ERP solutions on offer, it is important that you choose the one that best echoes your business needs. At Triway Technologies, we provide Integrated and industry-ready Agile ERP solutions that are capable of integrating your business flow and managing market needs.

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