Getting involved in an ERP purchase decision is a conundrum for most CFOs. ERP systems can create a more efficient business with a stronger bottom line, but ERP conversations tend to linger around the use of technical lingo that CFOs may not understand. To top it off, an ERP implementation is a significant financial investment. While the financial impact of an ERP purchase will certainly garner the CFO’s attention, the financial officer needs to understand the consequences of either standing put or moving forward. Standing put equals stagnation, and in today’s business climate not doing something that can keep you a step ahead of your competition is costly risk not worth taking. Moving forward with the right ERP system for your organization delivers significant upside that could affect the company’s bottom line positively.
What does the CFO need to know in order to help make the best decision for the organization?
ERP Systems Help Businesses Run More Efficiently: ERP+ Efficiency= Cost Reduction
The purpose of ERP software is to provide a 360-degree view of all departments in your organization. It’s designed to enable maintenance of accurate records of activities such as warehouse orders, customer inquiries and service calls, and to then act upon this data. Ultimately ERP systems help businesses run more efficiently to reduce unnecessary costs.
High Return of Investment: ROI+ Productivity=Increased Bottom line
The CFO needs to understand that ERP, properly implemented and managed, can be a significant driver of ROI. ERP creates a common infrastructure that enables better access across business units to mission-critical data, and thereby makes for a more cohesive and efficient organization to increase productivity.
Cloud-Based ERP Solutions Are Easier to Scale: ERP+ Cloud= Easy Growth Adoption
A new consideration that has emerged in the marketplace is whether or not to embrace a cloud-based ERP solution; cloud based ERP solutions are great for scaling businesses with ease. It offers the flexibility to quickly add users and to be up and running in no time even without a full stack IT department.
Quick Financial Audit Reporting: ERP + Financial Auditing= Easy Time
Another key consideration for CFOs involved in ERP purchases is the matter of maintaining Sarbanes-Oxley compliance (not to mention other compliance requirements). Newer ERP solutions will enable much easier reporting for audits, making regulated financial reporting less cumbersome. There’s no question that the CFO should be involved in ERP purchase decisions; as the CFO can apply strategic business thinking to organizational requirements in order to move forward. And when the right ERP system is implemented the right way, the enterprise will experience lower costs and greater control—and that will make any CFO happy.Open modal