Traditional financial performance metrics provide information about the past performance of an organization but are not particularly suited for predicting future performance. By taking into account factors other than financial ones, the management of a company can convert the company’s strategy into practically achievable goals and assess how well the strategic plan is being carried out.
An organization has to devise strategies and do careful planning before implementing ERP techniques. ERP helps to reduce costs and enhance the quality (efficiency) of working time. ERP techniques help maximize the value of technological advancements and align their utilization to the goals of the organization. For example, ERP enables a manager in the Sales Department to answer a customer query immediately by seeing the real-time status of the customer’s product delivery, which would not have been possible otherwise. ERP techniques have facilitated organizations’ ability to do away with tedious and time-consuming processes (Ptak & Schrgenheim,2003).Enterprise software is built around a large number of predefined business practices based on best practices. Best practices are the most successful solutions or methods of solving problems an organization uses for regularly and effectively achieving business goals. Enterprise systems help increase efficiency and help mangers make better decisions by providing them updated information from throughout the firm. It also helps form a more ‘customer-driven’ organization by facilitating faster responses to customer queries and requests for information.