Merging Islands into a Continent of Information

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Articles of Note, Tech Innovation, May 2008, No. 1

By Lisa Ahn

Integrate with ERP

Studies have shown that companies spend a good deal of their time inputting the same information into different databases. These non-integrated islands of information are stand-alone applications, sometimes called silos. It is difficult for these islands to communicate with one another, dealing with issues like wasted time, input errors, and inconsistencies of information. Such inefficient workflow processes make it difficult for a company to improve in their rates of customer satisfaction and to compete in today’s fast market.

ERP (Enterprise Resource Planning), however, integrates all departments and functions across a company into a single system, allowing employees to easily share important information. ERP eliminates consolidation errors and greatly reduces the time it takes to close the books, while also creating new revenue opportunities and cutting expenses.


Why upgrade to an ERP?

CIOs agree that financial reporting, cost control, and competitive advantage are compelling reasons to replace their old systems with ERP.

1. Integrate financial information—A CEO can understand the company’s overall performance from ERP’s single version of contributed revenues from different departments.

2. Integrate customer order information—ERP systems can track orders more easily, and coordinate manufacturing, inventory and shipping among many locations at the same time.

3. Standardize and speed up manufacturing processes—ERP systems come with standard methods for automating some of the steps of a manufacturing process, saving time, increasing productivity, and reducing head count.

4. Reduce inventory—ERP helps the manufacturing process flow more smoothly, and improves visibility of the order fulfillment process inside the company. This leads to reduced inventories of materials used, and more efficient deliveries to customers. In the end, you have a reduction of finished good inventory at warehouses and shipping docks.

5. Standardize HR information—HR departments with multiple business units may not have a unified simple method for tracking employees and communicating with them about benefits and services. ERP can fix that.

How are companies using ERP?

CIOs largely use ERP to cover the following areas:

Accounting and Financial Applications
Order Processing and Supplier Management
Inventory Management
Vendor Management
HR Management and Payroll Functions
Customer Service

What goals can be reached with ERP?

Operational Efficiency
Global Business
IT Cost Reduction
Customer Growth and Retention

Top Commercial ERP Sellers


ERP helps a company work as a team to reach business goals. When used efficiently, ERP provides strong competitive advantage. For further consultation contact Sales at sales[@]