ERP implementations or Enterprise Resource Planning software are generally centered on providing incremental improvements for managing the back-office systems of businesses or enterprises through customizing the suite of applications that make up this software. Digital transformations, on the other hand, aim more on delivering advanced business value by integrating new innovative technologies for a better future that may or may not be restricted to the usage of ERP software.
Speaking of technological differences between these two that is understood well by the best web development company, ERP systems like Microsoft, Oracle, SAP are just a substitute of the traditional enterprise back-office functions like marketing, financials, human resources, inventory management, etc within a single user interface, database or an application. Digital transformations on the other hand, with an aim to renovate the business models, are influenced by a diversified range of technologies like Industry 4.0, CRM, AI, IoT, HCM and even ERP and other technologies to deliver value.
Technology in the Era of Mobility
In today’s organizations where employees are allowed to work on the go with the rapid increase in the usage of mobiles and smartphones, EMS or Enterprise Mobility Software is being adopted by business enterprises for assisting the IT team in the implementation of ERP or digital transformation.
It is opined that allowing employees to work on the go increases productivity but that entails a threat to organizational security for access to corporate resources. Enterprise Mobility Solutions
in such a scenario helps prevent loss of critical data or unauthorized access by hackers ensuring the productivity that organizations expect from their employees by harnessing the power of mobility.
Now to ensure smooth connectivity between EMS and the desired ERP or digital transformation platform, organizations need to hire an enterprise mobility service provider who can assist with a strategic decision on choosing and implementing the right technology and framework.
A custom software development company not only helps a business to hire the best enterprise mobility service provider, but it also helps to customize the ERP tailored to the requirement of the business. With the best possible technical solutions of a custom software development company, an organization can reap the benefits of a fast project launch that ensures speed, efficiency and thus productivity of the business.
Decision-making ways between ERP and Digital Transformations
Simply speaking, if businesses are accepting and adopting their first strategy to remain ahead of competitors with the integration of the latest technology, then digital transformation is what they need to embrace. While the implementation of ERP is carried out with an object of attaining better effectiveness within an organization’s existing business form, digital transformation interrupts and alters the existing business form. So let us understand the below tips that will help decide the right technology for an organization.
- Enhancements or leapfrog technologies
This is the first and foremost point to consider about what exactly is required of the business. If it is felt that the ongoing operations are already efficient and effective and that new technology will enable prospective improvements to it, then ERP is the one suited for the business. But if the organization has targeted to bring about a spectacular change in its business operations by disrupting the ongoing process, then digital transformation is the right choice.
- New technology and competitors
If it is observed that competitors of the same industry are more tech-savvy and that adoption of new technologies by them are disrupting the ongoing process, then digital transformation is necessary as it is sure to make things better. But if it is found that tech-savvy competitors cannot disrupt or pose any threat due to the existence of a fairly stable and mature operational model, then it is appropriate to go for an ERP implementation.
- Organization’s risk tolerance factor
It is customary that an initiative in the change or introduction of any type of technology entails a reasonable amount of risk. It is very obvious that apart from the utilization of more time and hence cost, an intense digital transformation is associated with more organizational risk as the entire business process gets altered; roles and responsibilities of employees get changed, all leading to operational disruptions in the short run. So an organization needs to align the level of risk associated with the expectations of the initiative of transformation to prevent unnecessary loss of time and money.
- Investment power
A business process involves the investment of time and money. Apart from the risk tolerance factor, an organization must be aware of the magnitude of the time and money associated with the change and whether it is worth withstanding. So if the significant investment of the required time and money is not affordable, the organization should go for incremental improvement of the ongoing process, which is the implementation of ERP. But if an investment of these two critical requirements is not a problem for an organization and it is willing to leap forward to remain ahead of its co-competitors, then going for a digital transformation makes sense.
- Overarching enterprise and IT strategy
Without a precise alignment between the overarching enterprise and its IT strategy, all the above four will have no importance in the entire decision-making process. It is most crucial to have a concrete and defined IT strategy that is aligned with the overall business objectives and strategy of the organization before deciding to choose between ERP implementation and digital transformation. And the best web development company can assist the organization in choosing the right technology.
To sum up, whether it is an ambitious startup business or a large organization with an international presence, integration of robust features and improved functionality employing technology plays an important role in giving a competitive edge to the business. So enterprises must make a correct decision between the two cutting edge technology – ERP implementation and digital transformation keeping in mind the challenges involved in both the cases. After all, unlocking the potentials of technology can make a business ready for future challenges.