How to Drive Innovation with Your Enterprise Resource Planning Software
The tech world is fond of a good acronym. While most of them make a degree of sense when spelled out, ERP (enterprise resource planning) manages to remain as inaccessible in its longer form as it is in its acronym form.
In essence, it’s the software and systems that underpin and support the many daily activities that make up business operations, from accounting to manufacturing.
When used the right way, ERP systems can be empowering, but poor installations are so common that the very mention of ERP is enough to elicit groans from even the most battle hardened of IT managers.
In this article we burst some of those perceptions and highlight how ERP can be invaluable to driving innovation in your company.

Ways to Innovate Using ERP
Arguably the biggest benefit ERP brings in terms of supporting innovation is freeing up time.
Any innovation effort will require time, energy and other resources, and ERP frees up those resources in a number of ways.
1. Consolidating Many Distinct Systems into One
Many organizations use dozens of different IT systems, each requiring managing and maintaining. With effective ERP, you bring all of those systems under one roof, thus reducing redundancy and making it much easier to manage. It also makes it easier to look across the entire organization for processes that can be improved.
2. Providing Access to Information
The most innovative businesses need employees to make decisions at the frontline. To do this, those employees need access to the right information, at the precise moment of making their decision. They can’t hang around waiting for approval or for due processes to take their course. ERP can provide the right people with the information at the right time.
3. Learning What to Stop Doing
As with many technologies, the key is to develop new processes and standards. ERP is no different, and it will allow you to reevaluate a range of business processes to ensure they work well with the new ERP system. This can be a valuable process in itself as you’re almost certain to stumble across redundant processes and ones that are holding your organization back. Breaking with the past is as important for innovation as forging the new, so this should not be underestimated.
4. Focusing Resources
A natural consequence of stopping various processes and activities is that it frees up resources for use in new and exciting ways. By driving efficiencies across the business, you can allocate resources that are so crucial for innovation to flourish.
5. Supporting Collaboration
ERP systems provide fantastic real-time information on what is happening in your business, and who is responsible for it. This will allow you to identify the right people for every project and ensure that innovation is suitably resourced.
To achieve these benefits you will need to overcome some common pitfalls that trip up many ERP projects.
Investing in Innovation
Gartner recently estimated that 75% of ERP projects will fail to deliver a good ROI. However, Investing in ERP can set you apart from your rivals and give you a real innovation boost. By following the tips outlined above you’ll avoid some of the pitfalls and ensure your efforts pay dividends.
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