How ERPs can help gather nonfinancial measures for monitoring business success

ERP Help in Gathering Non Financial Measures for Monitoring Business Success

Introduction

Each and every organization either, small or large, for profit or not for profit, has this need of assessing the performance in measuring the overall progress of the company on regular intervals that it makes (Bhatt, 2000). There have been many ways through which any organization can measure its business performances and cater its success. Usually, the financial metrics are the basic reasons to use which can judge that either the organization is on the flow of success, having its base on the positive trends along with various other key figures. Though, additionally in determining the overall success, every other organization need to make sure that it takes serious account over the non financial success measures along with all the financial measures of the company. Those organizations which focuses on the financial measures of performance exclusively, often take no notice of the contemporary, opportunities of value creation and later fail in indentifying and assessing the threats of value destroying that company will face (Beretta, 2002). However, through no means the organization should ignore the financial measure instead of combining them with the ample number of all the non financial metrics of performance, which actually support the thorough processing of decision making inside the organization. This paper is the reflection of how the non financial measure can be gathered through the ERP system. This study will consider few of the non financial indicators of performance which should be considered within an enterprise which utilizes the application of Enterprise Resources Process (ERP). It will further analyze the implications which the non financial performance measures have on an enterprise and which make the mentioning of all the weaknesses that are resided with the measures of financial performances.

Discussion

The Enterprise resource planning (ERP) is software or a group of functions and programs integrating corporate accounting and resource management with the production schedules and the customer orders. ERP is not directly related to the operations and design engineers, however the ERP is the most critical technological shift an organization can make. ERP programs are convoluted and costly, and businesses often dedicate important human assets to ERP tasks, chartering advisors or schemes integrators to assist them apply them. Companies can conceivably spend millions of dollars and several years on ERP projects. The promise payback is, although, high. A mindfully designed ERP scheme can supply an association with a dependable, incorporated database that can be utilized to organize enterprises more effectively (Croteau , 2004). The fact that ERP programs are modular ensures scalability, flexibility and adaptability to change. That is, we can install a number of modules in the present and then implement new modules if business needs have increased.

Another advantage inherent in this feature of the program affects the ERP financial and economic aspect: pay only for the services that our company needs. That is, the cost varies depending on the size of the ...