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ERP and Digital Transformation

The term “digital transformation” is now in the spotlight in the business world. Business
transformation helps companies and organizations improve their services, productivity,
provide better customer experience and resource planning, etc(Fingent,2019). ERP system
not only helps organizations thrive but also let the talent in organization shine and make a
difference. Enterprises all over the world are using business transformation to make their
business more efficient and profitable. ERP system with digital business transformation has
changed the way businesses used to make decisions.

Through an effective flow of information with all the departments informed decisions can be
made.

Correct business software helps organizations to avoid blunders such as lost orders,
exploding data, bad customer service, and inventory shortage, etc which in term helps in
making more informed decisions.

Enterprise software can help organizations share only necessary information with other
departments without the risk of leaking confidential data. Enterprises now are more than
ever skeptical of ERP implementation due to Lidl software disaster. Digital transformation is a
process, a system for organizations in the business world. The digital transformation uses
strategies as well as technologies like artificial intelligence, Internet of things, big data
analytics to help businesses improve (Fingent,2019). The digital transformation approach
intervenes with the business model to make changes in the management. Enterprises that
have adopted the digital transformation model have witnessed a significant increase in
annual revenues on one hand and a decrease in costs on the other hand.

In comparison with ERP system digital transformation prefers to improve an enterprise’s

Enterprises can even benefit from digital transformation through Cloud integration. With
cloud computing organizations can run companies finance, customer service, and operations
management in the cloud (business,2016). Digital transformation and ERP software have
open new pathways for enterprises to take their business to the next level.

Another great feature of enterprises going for the digital transformation model is that you
can use various tools to scale your business no matter the size of your enterprise. You will
have access to better tools for your business and create an enterprise-friendly system at the
same time (business2community,2019). With all that said some of the benefits of ERP system
with digital transformation include increased productivity.
As information is easily accessible employees don’t need to get in touch with other
departments which saves time and energy. The flow of data is streamlined which is gathered
in a single location becoming easily available to every employee. Collaboration is improved by
leaps and bound. With a good ERP system, you can reduce the cost of operations, something
that small businesses are striving to do in every possible way. Small enterprises usually have
limited resources that they have to be careful with. A good ERP system helps organizations
manage their resources Since the data is always up-to-date and organized in an efficient way,
it is easy to make informed decisions.

A highly organized ERP system can help companies stay ahead of their competitors. The main
focus of the ERP has been to combine all business management operations under one roof
and provide with revolutionary business value via better and improved technologies. Many
ERP system selling companies claim that their system creates true value for businesses by
supporting digital transformation. But in reality, what is they do is that they replace the old
fashion back end operation into improved business process and model through new and
innovating technology (Thirdstage-Consulting,2018).

ERP system should not only promise a secure flow of management but also results. Along
with that, it should guarantee the safety of the data which should be the first and top most
priority. In the digital world, opening up to outside world makes you vulnerable to attacks by
hackers, criminals and spies but the ERP system ensures this safety regardless of software
running on cloud or site (Abas ERP,2019).

A highly organized security system is in place with multiple authentication, limited access and
encryption which is absolute necessity in today’s world. Today, large amount of information
flows, which with the help of statistical procedure and algorithms are analysed and
interpreted. What this does is that it helps the ERP system to take independent decisions.
These decisions are then compared with the desired outcomes and again put into the
system.

This helps the models exceed continuously, largely due to the adaptive control loop.
Innovative software are mainly outcomes of non-rigid and highly connective business models.
The ERP system should be able to produce comprehensible, evaluable and processable data.
It is not long before you will want your ERP to run on your smartphone and provide you with
comprehensible data and difficult analyses.

To be able to do this, that is have data available to you all the time, you need an always
updated system based on Cloud. No matter how big the data is, the ERP system should be
able to handle it (Manufacturing Business Rechnology,2020). To achieve this, a parallel
structure must be on hand as a backup plan so that you are able to process and use the
streams of data.

Conclusion:
One thing is for sure that is bigger the data in the business processes, bigger the problems in
business processes. And ERP being at the core of digitization is an integral part of the
process. If you want to avoid complex structural problems then you need a flexible and
scalable IT structure. And this is how it will work regardless of your viewing platform either
via Cloud, site or mobile solutions (Panorama Consulting,2016). ERP has been a way of
training employees while implementing new systems according to your needs and
requirements. On comparison, to be widely accepted by the employees what you need to
focus on is complete change in environment of the organization and programs. ERP are
famous for failures due to less investing in change in environment of organization and
comfortability of employees. Whereas, to increase your chances of success, you need to
focus more on the employees and their comfortability.

Long gone are the days when businesses used to manage their data, projects and documents
using traditional method. Today is the age of digitalisation, where most businesses make use
of digital resources such as Enterprise Resource Planning (ERP) to manage their projects, data
and documents. But the real quest for many companies nowadays is whether such
transformation to digital management systems has really been worth it. Let us see through
the eyes of expert what future does these digital management systems have. The biggest
consumer of the Enterprise Resource Planning (ERP) is the manufacturing industry. The usage
of the ERP system in manufacturing companies has surpassed more than 50% in 2018, while
many have already decided to implement the ERP system as their management system
(Objectiveflune ,2019). But manufacturing industry isn’t the only consumer of ERP system,
the application of ERP system is expanding. ERP system can be very beneficial for businesses
as it can save their resources and time as it allows them to manage all their projects and data
from a single location. For manufacturing companies, such centralisation promotes
collaboration between various units of the company and thus helps in handling the orders
more efficiently at every stage of the process (Digitalist Magazine ,2018). ERP system not only
saves time for the companies but it also improves their delivery rate by 24% which can be a
game changer for many companies. Moreover, it can help companies decrease their
operational expenses by 23% and admin expenses by as much as 22%. So, let's get back to
our real quest whether adopting a new ERP system is really worth it or you should carry your
company's heritage management system. Above mentioned benefits have obviously hooked
you to transforming your management system to ERP system if you already haven't. But this
comes with a lot of challenges to implement ERP system. About half of ERP systems fail to
implement the first time. If you are looking to implement ERP system then you have two
options either to implement ERP system by buying one and replace your old management
system. But keep in mind that nearly one third of ERP systems take longer to implement and
adjust in your company while they may cost three to four times than expected (Search ERP
,2017). There may be several reasons for this, it may be because system need adjustments
according to your requirements or your employees may take time to adjust to change of
system. It would be naive to assume that your employees will adjust easily to new system.
You should be really patient with your employees as they manage to cope with newly
adopted ERP system. Training and seminar should be provided to employees to efficiently
implement the new ERP system. Cloud based ERP systems are preferred by companies as it
allows them to implement and control all their operations easily, flexible framework helps
them avoid interference (SAP ,2020). Cloud based ERP also get along very well with
centralisation and help company better collaborate with remote units. It also allows you to
introduce new changes or upgrades very easily and is very easy to implement while keeping a
close eye on progress and output. Around 90% of medium companies and enterprises are
using Cloud based ERP.