Enterprise resource planning (ERP) has been defined by IT managers as an integrated whole approach that encompasses all facets of an organization from its smallest details down to its most vital aspects. This includes such things as technology, people, processes, and data. In order for ERP to be effective, it must be able to integrate all of these aspects into a way where decisions can be made as efficiently as possible. The value of having a well-oiled working system is priceless in the competitive business world today. In fact, most businesses would struggle to survive if they did not have ERP at their helm. Having a system that functions effectively can mean the difference between success and failure, and sometimes when a company fails to remain up-to-date with its business processes, it can lose out on opportunities that may arise in future.
So how does one go about achieving total cost effectiveness in Enterprise Resource Planning? This is primarily done by taking risks in developing the new business model for the enterprise. Entrepreneurs and venture capitalists usually support new ventures which provide a very high likelihood of being successful; however, there is always a risk in every venture no matter how safe they appear to be. For a company to take risks and develop new business models that are more lucrative, it needs to take risks. If it does not, it cannot be expected to grow and expand indefinitely.
Taking risks and developing new business models is a constant requirement of enterprises no matter how large or small their enterprises are. There is a proverb that states, “The race is not giving to the swift or the strong, but is giving to he or she that endured to the end.” That implies that the enterprise that gave the strongest effort in developing a new enterprise was the one that will ultimately prevail and flourish. It could be said that those enterprises that took the risk and developed a viable business model will be the ones that will succeed and blossom. In order for an enterprise to excel, it needs to take the initiative to take risks and be willing to adopt new techniques and strategies that could change the face of the enterprise and its market sector forever.