What Is the Role of ERP?
For any kind of business, ERP systems have established an extremely important role in the past years, even to be counted as the spine of the operations. Companies have become dependent on the large number of core services provided by these systems from accounting and inventory management, all the way to HR.
Why Is ERP Not Fully Serving Today’s Business ?
The fundamental ERP data model is based on the assumption that organization sells physical items in a one way or another. This traditional straightforward logic that makes the ERP systems so robust and capable make them poor in performing tasks which have become the new standard of the industry:
Business is radically transforming into Subsciption Economy from the Order-Ship-Invoice-Collect-Recognize-cycle, on which the ERPs have so long dominated the field.
In the last years the whole model of sales has been changing rapidly. More often than not companies find themselves packaging their products in the shell of services. Even the most profound traditional products have gained new life in service business model. Simultaneously the supply of intellectual products has multiplied.
For example, previously if data needed to be saved or backed up, an external hard drive was required. When the drive was full, an additional hard drive had to be purchased. But what if all of the capacity was not needed 100% of the time? It just wasn’t possible to go and buy half of a hard drive for 50% of the time.