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ERP gives insights across the value chain

By Suzanne Franco, Surveys Editorial Project Manager at ITWeb.
Johannesburg, 11 Feb 2015
An ERP strategy needs to align with the business on all levels, says New Era Solutions' Stuart Scanlon.
An ERP strategy needs to align with the business on all levels, says New Era Solutions' Stuart Scanlon.

Enterprise resource planning (ERP) is imperative for South African businesses in this turbulent time of many challenges.

So says Stuart Scanlon, sales and marketing director at New Era Solutions, who notes today, businesses are under more pressure to perform, and ERP systems provide valuable insight, not only within a business, but across the entire value chain.

On this note, New Era Solutions, in partnership with ITWeb, is conducting an online ERP Survey during February to gain insight into the ERP strategies within South African organisations.

"We have a baseline of data from the 2014 ERP survey; therefore, the results from this year's survey will be valuable to see how trends have shifted in this turbulent market, particularly around priorities and challenges."

He points out an ERP strategy needs to align with the business on all levels. "Without a clear technology strategy aligned with businesses objectives, often an ERP system can be the cause of frustration as you have isolated pockets within a business."

However, Scanlon says ERP systems are not the proverbial silver bullet. "ERP systems simply enable collaborative communication, automation and provide a repository of data. Where there are no systems or processes being followed, often decision-making is reactive, and too late. That said, the same can apply when businesses do not know how to extract the benefits from their existing systems."

Knowledge journey

Scanlon says cloud computing, big data and mobility are the latest trends in the South African ERP space.

"Another major trend that businesses are starting to understand is 'tribal knowledge' and how ERP systems can play a fundamental role in facilitating this sharing of process information, industry knowledge and accountability. This is seen where social media has started to play a role in how companies design or tailor their offerings and services."

Scanlon says South African organisations have much more educated buyers on board, therefore the success rate of ERP projects have improved significantly.

"The challenge is more a case of gaining long-term success with your ERP system. An ERP implementation is a journey that requires the business to take ownership of their newly-acquired systems right from the start. If a business is able to do this, they gain incredible benefits as the system will evolve to become a part of an organisation's DNA," Scanlon recommends.

He also adds IT trends drive investment in ERP in organisations.

"One example is the Internet of things that is becoming a part of our daily lives. Even if we don't immediately realise it, we are creating massive amounts of valuable data around how we consume products and services. Organisations that are able to harness that data and react, will lead," Scanlon says.

He advises, even though the long-term benefits far outweigh the short-term pain, organisations still underestimate the effort required to implement an ERP system.

"This education is an important role for the system implementer to fulfil, in driving this process of ownership and accountability home, when it comes to an ERP project," Scanlon concludes.

Click here to complete the ERP Survey and you can win a Specialised 29" CAMBER COMP Mountain Bike.

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