Should companies adapt to ERP or not?

Let’s start from what is ERP! According to Wikipedia, Enterprise resource planning (ERP) is an integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. ERP is used in various departments – Purchasing, Human Resource, Manufacturing, Finance and etc. In my previous company, we also used SAP for accounting and inventory control purpose.


Having said that, ERP is designed to cut cost of company, reduce unnecessary data maintenance and help quick decision-making of management. (Can find more pros from this website.) Sounds like it is good for all, isn’t it? Therefore, is ERP is sine qua non to adapt for all companies?


My answer is NO! ERP is the system to support business process around the world, but it needs to be customized to each company. Each company has unique demand and not all functions of ERP are required to every company, which means that some level of modification should be accompanied. Therefore, if the company doesn’t have enough scale to start this system and maintain regularly (Software upgrade cost is quite costly.) and doesn’t have qualified manpower to work on this, then better to reconsider of usage of ERP. If only becuase other companies have using this and this is the global trend so that companies decide to adapt this, it won't work as it is supposed to.


It doesn’t sound clear, but surely whether adapt or not is totally up to the circumstance of company. Also, even if companies decide to adapt, they should tailor ERP to their company's own system.

Ciao
E