Three major reasons:
To integrate financial data. As
the executive staff tries to determine the company's overall performance, their
may find many different versions of the truth. Finance has its own set of revenue
numbers, sales has another version, and the different business units may each
have their own versions of how much they contributed to revenues. ERP creates
a single version of the truth that cannot be questioned because everyone is
using the same system.
To standardize processes. Manufacturing
companies — especially those with high mergers and acquisitions activity — often
find that business units across the company make the same product using different
computer systems and methods. Standardizing those processes and using an integrated
computer system can save time, increase productivity and reduce headcount.
To standardize HR information. Especially in companies with many business units, HR may not have an integrated,
simple method for tracking employee time and communicating with them about benefits
and services. ERP can resolve these challenges.