In the past, ERP implementation was a relatively simple task – as long as you followed the advice of an independent consultant like ourselves. However, like everything in industry at the moment, ERP has been impacted by our digital world, and ERP implementations are now part of the digital transformation of your business.
But what is digital transformation? And how does it differ from traditional ERP Implementation?
Enterprise Resource Planning (ERP) software is the name given to a suite of applications which help businesses to manage their processes. So, ERP implementation is the name given to the process businesses go through to update and/or replace their back-office systems.
Digital transformation, on the other hand, is concerned with a broader transformation within the business through the use of innovative new technologies – and is not restricted to just ERP software.
So, what are the key differences between ERP Implementation & digital transformation?
- Business Process Management. ERP Implementation is about automating your existing business processes to help you deliver your products and services to your customers in a more efficient way. Digital transformation, on the other hand, takes a more disruptive approach and looks to re-engineer the way you deliver products and services to the customer to improve your business value.
- Organisational Change Management. With ERP implementation, organisational change management will focus on making sure the people within your business are trained on how to perform the business processes they already deal with using the new system. Digital transformation is about transforming the business, and so your employees may find their job role changes in order to support your new business model.
- Providing Business Value and ROI. We know from experience that ERP implementations can deliver great ROI for businesses, but it can take a few years for the new processes to bed in. Digital transformation tends to show a greater ROI through reduced costs and an increase in revenue at a faster rate.
- Technology. ERP applications tend to focus on back-office operations such as finance, inventory management, and product planning. Digital transformation takes into consideration every piece of technology that could be used to impact your existing business model – and will include such new technologies as Artificial Intelligence and the Internet of Things.
So, how do you decide whether an ERP Implementation or Digital Transformation is better for your business?
As with most things, there is no one right answer – it just isn’t as simple as that. Every business is unique and so the best thing to do is to contact the experts at Greenbeam Consulting to help you take a closer look at the best way for your business to move forward.