Page 6 - CxOs ERP Guide

3. ERPs Bring About “Best Business Practice”

 For an ERP to be termed World Class, it must encompass the state of the art management and financial
reporting standards. Example of which are: Activity Based Costing, Just in Time Inventory

Management, KPI monitoring, Balance Score card etc. We even hear of systems that say
“Environmentally Friendly” since they reduce the need of paper.

4. Importance of Business Intelligence

 When an ERP is implemented, the Top Management and Divisional Heads specify all reporting
requirements, they deem necessary at that time to the Software Vendor. However it is not possible to
anticipate ad hoc reporting requirements that will occur over a period of time. Thus ERPs provide for
report generation tools and Dashboard creations.

5. ERPs Create a Competitive Advantage

 When you do business with “on time delivery” at a “lower price” and “reasonable quality” means you got
your customer and beaten the competitor to it.