ER what?

Should companies adapt to ERP or the other way around?

Before even considering who needs to adapt to who, I need to find out what ERP actually is?!

Electron Paramagnetic Resonance? Well perhaps that too, oh no...but wait a minute... that's EPR...

Ok... 'Enterprise Resource Planning' on track again...

The following image helps to understand what ERP is about!

'Enterprise Resource Planning'

TPCmag.com defines it as:  

"An integrated information system that serves all departments within an enterprise" 

 As the image above illustrates, ERP is a central system which provides flow of information within the differnt part of the company internally, as well as customers and other external stakeholder such as suppliers externally.

What are the benefits of ERP?

Is simple words, it increases efficiencies within each department of the organization. "It improves the coordination of the company’s process into one streamlined process where everything can be accessed through one enterprise wide information network."

As an example; supplier>inventory>customer. By linking these, the system identifies what products are selling well, when stocks are low and an order will be placed accordingly.

"In order to have a successful implementation of your ERP system, you need to make sure you have your information in line to help make the process swift.  It doesn’t matter whether or not your company deals with paper or plastics, ERP provides your company with the right system and performance needed."

According to the above statement, both ERP and the company need to be adapted to one another. 

I would however argue the company's need to adapt to the ERP would very much depend on how much the given ERP would increase the company's efficiency and if the cost of this adaptation outweigh the benefits. 

Implementation of an ERP system and the integration of the enterprise in itself is a complex procedure and great care should be taken when choosing such system. If in addition to that, the company is required to make major changes to be able to utilize such system, it is most necessary to carry out a cost analysis and estimate the time in which the benefits would be appreciated.