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Competitive Advantage of Highly Effective ERP System

Effective ERP system in many organizations it is the accounts and finance departments which are the biggest supporters of the ERP implementation. This is because by using sales and operations planning process, they will be able to tie financial implications to the forecasts and determine where the organization should be headed financially for the period, year or even longer. This information can be used to insure that you meet bank forecasts, growth forecasts and increase the value of the organization.

For any organizations, if you can achieve the sales targets the departmental budgets generally fall in line so that profit goals are met. Use this process to plan for profits, growth or to manage through difficult period.

It is a fact that it is easier to implement the accounting applications than those for resource planning. This is because less time is typically required for process definition and also because the implementation path is more straightforward. Most companies that have some sort of a computerized information system would have computerized their finance and accounting processes. The reasons for this are based on the relative immaturity of effective formal resource planning and scheduling processes versus the high degree of maturity on the finance and accounting side.

Finance and accounting people have an important role to play in the ERP implementation projects. In addition to implementing their own new processes, they have role to play on the ERP executive committee, the project team and spin-off task forces.

They will need to devote some time to getting educated on ERP system. It is necessary for them to understand the logical structure of ERP, the benefits to be achieved from running the business with only one set of numbers and the competitive advantage that highly effective ERP can provide.