Aberdeen Research Reports on the Key Benefits of Today’s ‘Flexible’ ERP

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Posted by: briansittley Comments: 0 0 Post Date: July 30, 2015

aberdeen logoAberdeen Research recently released a report entitled “Roll With The Punches: Select Flexible ERP and Be Prepared for Business Challenges.”  In it, they highlight key benefits they have documented in organizations deploying what they call “flexible” ERP systems.  Among the highlights…

  • “Best-in-Class” organizations are 83% more likely to have an ERP solution that can be quickly tailored to reflect business change.
  • Those organizations in turn are 59% more likely to be able to monitor regulatory compliance.
  • They are 3 times as likely to be able to tailor interfaces to reflect user preferences.
  • And they saw a 15% improvement in operational costs as a result of their solution.

Flexible here denotes a system that is “easily tailored to reflect business change.”  The concepts of customizable and modifiable come into play, along with the built-in flexibility accorded by today’s more modern ERP systems, which include features like drill-downs, dashboards and business intelligence, and triggers or alerts.
The firm looked at key reasons that companies replace their systems.  The two big ones:

  • Obsolete technology foundation or infrastructure of their current system
  • Lack of features

Aberdeen went on to list the ratios of improvement in operations that were seen by firms who implemented new systems, and their results are notable.  According to a table from their August, 2014 research results, they include the following results when companies deployed such “flexible” systems:

  • 45% improvement in inventory turns
  • 24% change in stock to sales ratio
  • 15% change in operational costs
  • 13% improvement in administrative costs
  • 20% improvement in complete and on-time delivery
  • 14% improvement in inventory levels
  • 16% improvement in internal schedule compliance
  • 19% improvement in cycle time of key business processes

As organizations grow, Aberdeen concludes, it is necessary to change their technology as well.  As they note in conclusion: “ERP is the key technology used to support an organization.  Ultimately, flexible ERP creates a flexible organization that can take on any new challenges.”
You can download a copy of the full Aberdeen report here.

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