Digital Transformation vs. ERP Implementation: A Comparison
For many business organizations undertaking a new enterprise software solution implementation such as an ERP (Enterprise Resources Planning) system, there’s one question they might need to consider: whether this is a straightforward ERP implementation project or it’s a company-wide digital transformation?
This might sound like an insignificant question at times, but the answer to this question will have a large impact on business organizations. Specifically, the overall objective of such an enterprise software initiative and how the project will be carried out, all will be heavily influenced by this decision.
First, let’s consider in details the difference between ERP implementations and digital transformations:
Difference between ERP implementation and Digital Transformation.
Business Processes Streamlining, or Neccessary Disruption
ERP implementation usually involves the integration of various applications to allow business organizations managing their operations and automate a variety of business functions related to services, and technology. Implementing an ERP system such as Odoo helps businesses to connect the people, processes, and technology through one single source of data truth, which provides an enhancement and streamline business processes.
Digital transformation services, on the other hand, significantly and necessarily disrupts and improves existing business processes. In particular, with digital transformation, business organizations will try to leverage innovative and emerging technologies to offer better products and services to their customers, together with an all-around improvement on business functions and productivity.
Thus, ERP implementation is more about increasing efficiency of a current business model, while digital transformation introduces changes and may disrupt existing business models and processes.
Business process re-engineering
Enterprise software solutions and ERP implementations alone provide the streamlining and harmonizing of business processes as well as increase efficiency on business functions. Digital transformation enables innovative improvement on current business models.
For instance, by adopting a new ERP solution, businesses can tie together their multi business processes and allow the exchange of data between them, helping individual employees fulfill their responsibilities. Ultimately, this enhances the business operations of getting their products and services to customers more efficiently, while digital transformation can change the ways products and services are delivered to customers.
Business process re-engineering is only possible with digital transformation.
Adoption through training vs. Acceptance
ERP implementation requires a high adoption rate by employees through extensive training to ensure success.
Digital transformation, on the contrary, is all about enabling adoption through acceptance of those new technologies - which may imply the definition and transition of employees into new roles and responsibilities, along with comprehensive organizational change. Digital transformation usually places a great importance on the people aspect of the whole initiative.
One Platform vs. Range of Technologies
Additionally, with ERP implementations, businesses would usually focus on one single software solution (i.e. ERP) to streamline their operations by integrating with other applications, as well as automating menial tasks. Sometimes, a single ERP system might not be a suitable answer for businesses.
With digital transformation, organizations can explore a range of solutions and technologies, in order select the best suitable option(s) for them. Modern technologies are increasingly becoming more affordable with low barriers to entry, allowing businesses to be more flexible in choosing what to experiment and invest, instead of locking into one system.
However, to conclude, whichever option your business chooses, it should be selected to solve key businesses problems, instead of adopting technology simply due to its hype.
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