Is enterprise resource planning the new way to optimise business performance?

Laban Biwott (seated) accountant Eldoret Technical and Cossigah Mokua CEO Optimum Computer Systems (PHOTO: Courtesy)

What makes businesses stand the test of time? The answer is simple; the ability to come up with fresh new ideas to keep the operation running and the products and services fresh.

The influx of fresh ideas into the business on a regular basis is simply innovation and needless to say Innovation plays a very important role in any business venture.

Innovation generally refers to changing processes or creating more effective processes, products and ideas. For businesses, this could mean implementing new ideas, creating dynamic products or improving your existing services

It is against this backdrop that businesses and institutions are embracing Enterprise Resource Planning (ERP) which is basically the integrated management of main business processes, often in real-time and mediated by software and technology.

ERP is also a process used by companies to manage and integrate the important parts of their businesses.

Many ERP software applications exist to help companies implement resource planning by integrating all of the processes it needs to run a company with a single system. An ERP software system can integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.

Some familiar names are leaders in ERP software. Oracle Corp. originally supplied a relational database that integrated with ERP software developed by SAP before entering the broader enterprise market in a big way in the early 2000s. Microsoft has long been an industry leader, with many customers using multiple software applications from the company.

As cloud-based solutions have grown in popularity in recent years, the traditional ERP industry leaders have seen challenges from upstarts

So how do these ERP software work?

To understand this better, let us take an institution that has installed the system. Eldoret Technical Training Institute (ETTI) runs on Ultimate Academia ERP provided by Optimum Computer Systems. With the system students’ admission and operations are made easy.

“When a student deposits money in a bank account, we are able to monitor in real-time and the details are sent to the admissions and finance departments respectively. This means we don’t have long ques in our offices especially when admitting new students. This system has seen the student’s population grow and from our end, it makes record keeping easier and more accurate.” Says Diana Kandie, Admissions ETTI.

Managed well, ERPs such as the Ultimate Academia can increase efficiency but Cossigah Mokua, CEO Optimum Computer Systems, insists on proper support and maintenance to ensure that the software is up to date to avoid downtime. The customer must also ensure that the service provider/installer has what it takes to manage the system. Mark you, ICT industry in Kenya is a sector calling for regulation.

“The ICT solutions are as a result of intensified exploratory interactions with customers from diverse business practices and observations of what slows down effective and efficient delivery of services. As a result, our ICT innovations are geared towards improving service delivery through tested and proven cost-effective solutions” Points out Cossigah Mokua.

Important to note is that these ERP software are not limited to such institutions. Hospitals, SACCOs and other SMEs can also take advantage of such Innovations. As they say, it’s a digital era and no one can reverse the technology clock but lest you forget, the software is just as good as the service provider.