Why ERP?

Help reduce operating costs

  • ERP software attempts to integrate business processes across departments onto a single enterprise-wide information system
  • The major benefits of ERP are improved coordination across functional departments and increased efficiencies of doing business
  • The immediate benefit from implementing ERP systems we can expect is reduced operating costs, such as lower inventory control
  • cost, lower production costs, lower marketing costs and lower help desk support costs.

Facilitate Day-to-Day Management

  • ERP systems offer better accessibility to data so that management can have up-to-the-minute access to information for decision-making and managerial control.
  • ERP software helps track actual costs of activities and perform activity based costing

Support Strategic Planning

Strategic Planning is "a deliberate set of steps that assess needs and resources; define a target audience and a set of goals and objectives; plan and design coordinated strategies with evidence of success; logically connect these strategies to needs, assets, and desired outcomes; and measure and evaluate the process and outcomes."

Part of ERP software systems is designed to support resource-planning portion of strategic planning.

The Competitive Business Environment and the Emerging Digital Firm

Four powerful worldwide changes have altered the business environment.

Emergence of the Global Economy

Today, information systems provide the communication and analytical power that firms need for conducting trade and managing business on a global scale. Globalization and information technology also bring new threats to domestic business firms.

Transformation of Industrial Economies

In a knowledge and information-based economy; knowledge and information are key ingredients in creating wealth. Knowledge and information are becoming the foundation for many new services and products.

Transformation of the Business Enterprise

The traditional business firm was and still is a hierarchical, centralized, structured arrangement of specialist that typically relied on a fixed set of standard operating procedures to deliver a mass-produced product.

The Emerging Digital Firm

The intensive use of information technology in business firms since the mid- 1990s, coupled with equally significant organizational redesign, created the condition for a new phenomenon in industrial society. The digital firm is organization where nearly all significant business processes and relationships with customers, suppliers, and employees are digitally enabled, and key corporate assets are managed through digital means. Business processes refer to the unique ways in which organizations coordinate and organization work activities, information, and knowledge to produce a product or service.

What are the benefits of an ERP System?

The functions of ERP project are both direct and indirect. It is possible to measure the effect of the direct functions very easily. Some of them include saving money on huge margins, proper communication and avoiding procedural delays. However when it comes to indirect functions, most of them are not visible to the naked eye. They can be easily observed when a person gets more and more conversant with ERP process.

Some of them are as follows:

Enhances flexibility

Organizations followed rigid procedures and formalities prior to ERP intervention. One had to seek permission to view the details or data of the other department in the same company. This had to be routed through departmental heads. Of course there was nothing wrong because confidentiality had to be maintained at the interdepartmental levels itself in order to ensure the security of data. With the advent of ERP, this practice has been given a go by. Whatever a person needs can be immediately accessed by him subject to the delegated authority and essentiality. ERPfunction has thus helped individuals.

Improves Quality

ERP support has vastly helped to improve the quality of services and products offered by the companies. ERP has been instrumental in identifying the areas for improvement in the event of speeding and improving the manufacturing process or other core functions of the company. This has greatly helped to improve the overall quality. For example, in the course of implementing ERP software, the company would have found some obsolete practice. They can devise a novel and productive measure in consultation with the ERP vendor which will double the benefits given the ERP software implementation. Thus ERP project helps to identify the existing mistakes and improve upon them in a better manner. The ERP function will accrue only if ERP is carried properly in an organization.

Economizes the resources

ERP support will help to save manpower, time and money not only on a large scale but also in the case of many sub-processes. During the course of ERP implementation, the company can identify many areas that where resources are not properly put in use. This will help the company to decide on them and devise a suitable measure to properly use those resources. For e.g. during the course of ERP implementation, the company can get to know the misallocation of the resources due to reasons like wrong organizational structure and procedures. These would not have been otherwise possible but for ERP function.

Helps decision making

ERP support has increased the autonomy and thereby the process of decision making process becomes easy in departments. Formerly, departments had to get the consent and consensus from one another before finalizing or processing the end information. ERP has eliminated this need in the right time. Individual departments can function like separate entities (with good faith) because they can access the information required from other departments from the system in their table.


These ancillary functions need not necessarily be unique for every organization. Some organizations might experience lesser and some might expect more. It depends on the nature of the organization and how effectively they have made use of ERP project.

What would be the Return on investments (ROI), once ERP is implemented?

This article can form the basis for a research namely "ERP Industry paper". The intervention of ERP has resulted in lot of discussions among IT professionals, employees, and market and so on.

Some of the instructions that have to be followed to ensure adequate Return on Investments are given below:

Working out the Myths of ERP in the Initial stage

The question of ERP's ROI remains a puzzle to companies who are experiencing difficulties even in implementing it. There is a simple and straight answer to the question of ROI on ERP. Companies can definitely be assured of ROI from ERP if they properly follow the procedures and implement the right practices.

This is often well said than done. One common blunder committed by the company is following the age old methodologies and thereby the ERP process will not add any value to the company and business process. The difficulty in implementation process makes them think it is difficult to embrace ERP and the returns will not be guaranteed. This mindset is not true and hence companies have to work more as the process deepens and not vice versa, in order to achieve optimum benefits from ERP. Otherwise the operations done by ERPROI calculator will not be true. Even using ERPROI tools will serve no purpose.

Proper Implementation and Finance

The implementation process should take place in a smooth manner and in accordance with the set standards .There should be no compromise or controversy in the funds allocated. One mistake which is normally done by companies is that they tend to cut down the expenditures on some areas in order to be monetarily benefited.

However the fact is that it will affect the company in the long run unless the step is meant to change the decision like partial implementation (provided it is supported by some logical reasons. While talking about the implementation process, it is important to ensure that it confirms with the standards and as per the instruction of the vendor/ERP consultant.

Strict Adherence to Changes

Many of ERP's welfare measures are visible to the naked eye. However there are some elements that are unseen but still impact the organization in a large manner. These elements make the company to assume that ERP is not worth the money and hence they even go to the extent of violating/discarding it halfway and not following the changes that were arrived after a long suggestion and deliberate planning. They will defeat the very objective of ERP ROI. There will be no use even in disgruntling on ERPROI tools.


As said in the initial part of this article, ERP success solely depends on successfully following the laid steps. It will be proper to use ERP ROI to find the quantum.

Why should I choose 24x7 ERP as my ERP Business solution?

The five main reasons to choose 24x7 ERP solution are


Automates all business and functional processes thereby increasing overall operational efficiency.


24x7 ERP solution help in enhancing internal business processes and enables organizations to improve customer satisfaction. EASY ACCESS

Our web-based ERP solution enables easy accessibility and availability of timely information, which results in better decision making and forecasting.


24x7 ERP packages have a flexible and scalable structure thereby enabling organizations to adapt and cater to future business expansions and requirements.


24x7 ERP for Small and Medium Enterprises is affordable, quick to implement thus enabling the SMEs to focus on growth and improvement of their business rather than worrying about software. And over and above, JA Solution work with you jointly to deliver the most favorable ERP solution for your organization, to help you further maximize your return on the investment.

What makes 24x7 ERP more ideal than server based solution?

Web-based 24x7 ERP solution simplifies back-office process automation for mid-sized and growing business enterprises. It provides real-time information about finance, order management, purchase, inventory, employee management, e-commerce and much more. With web-based 24x7 ERP solution, you can accelerate business cycles, improve productivity and reliability, and provide higher levels of service to customers, suppliers and partners.

Web-based ERP solution improves business among customers, suppliers and partners through self-service portals, providing for lead management, shipment tracking, bill payment and more.

As a web-based hosted solution, 24x7 ERP, significantly reduces your overhead expenses. There is no software to install, no hardware to purchase and maintain, and no up-gradation requiring complex re-implementation over time. Our team of IT professionals manages your maintenance, support, and up-gradation at our world-class data center. As a result, you can focus on running your business, while our web-based ERP solution takes care of your business plans with the backend software

Why ERP is considered to be the backbone of e-business?

Business enterprises in India are in the process of a major transformation due to globalization and the deregulation of Indian economy, coupled with fundamental changes in the business models due to the emergence of Information Technology based business practices.

Most of the enterprises in developing countries, such as India, are in the process of implementing Enterprise Resource Planning (ERP) system in alignment with organizational transformation and process of re-engineering initiatives. ERP system promise benefits range from increased efficiency to transformation of quality, productivity and profitability.

However, its implementation poses some unexpected organizational challenges and changes that can be structural as well as cultural in nature. ERP not only helps establish world-class best business practices and brings transparency to the organization but also results in empowerment and flexibility in decision making process.

The most promising argument is that, to thrive in the e-commerce world companies need to transform their internal business process with the deployment of ERP system. Hence, ERP is considered to be the backbone of e-business.

What are the benefits of the ERP for Manufacturing Industry?

24x7 ERP is a comprehensive enterprise resource Planning system that offers best-practice support for multi-mode manufacturers in a broad range of Industries.

In today's aggressive business environment it is essential to be prepared to face a vast and competitive world. In this time of diminishing global economic situation, the most worried sectors are the small and midsize businesses (SMBs). They are challenged by the requirement of the customer and compliance mandates, effective management of supplier, costs control and finding new customers to grow the business.

24x7 ERP offers solution that enables manufacturers to compete in the prevailing market atmosphere. 24x7 ERP Manufacturing has the capacity of both finite and infinite planning capabilities which assist you to develop original schedule. 24x7 ERP Manufacturing Management also transforms the supply chain to achieve production plan with your sales plan, manufacturing, finance and customers.

The most promising argument is that, to thrive in the e-commerce world, companies need to transform their internal business process with the deployment of ERP system. Hence, ERP is considered to be the backbone of e-business.

Benefits at a glance

  • Minimize manufacturing cost and increase in resource utilization
  • Cut down production bottlenecks
  • On-time delivery performance
  • Transparent operational control

24x7 ERP ERP is designed for manufacturing excellence. With visibility throughout the operation and embedded support for a wide variety of manufacturing processes - including make-to-stock, make-to-order, configure-to-order, engineer-to-order , just-in-time (JIT) manufacturing and materials control, and lean operations.

24x7 ERP is changing the competitive landscape for SMB manufacturers. With 24x7 ERP, small to midsize manufacturing companies benefit from a fully integrated, on-demand ERP solution designed to reduce costs, improve customer service, increase margins and generate new revenue streams.

Further, SMB manufacturers can improve business performance with a deeply functional, yet easily affordable, web-based ERP solution.