- 4 October 2017
Who do you want at the head of your company: a manager who makes business decisions based on an informed analysis of relevant data, or one who makes decisions based on instinct?
A 2015 survey commissioned by Epicor polled more than 1,500 financial business professionals in 11 countries. They found that:
- 46 percent of CFOs made important decisions based solely on instinct.
- Many others said that they relied on a combination of instinct and experience due to a lack of pertinent data.
- A third of surveyed companies attributed poor decision-making to not having access to internal data when they needed it.
The negative consequences of all of those poor decisions aren’t quantifiable, but it’s safe to say they are substantial.
While instinct can certainly have value, it’s clear that making the best decision requires starting with the right data. Making the decision quickly, meanwhile, requires having access to that information at a moment’s notice. Enterprise resource planning, or ERP, is designed in part to facilitate this decision making.
ERP Data Shows the Full Picture
Because ERP integrates across an entire organization and provides enterprise-wide visibility, it effectively puts the data needed for decisions at a manager’s fingertips. The data does not exist in a vacuum; rather, it is in the context of other aspects of the organization that are touched by the issue in question.
Interpreting the data remains a human endeavor, and this is where instinct and experience can help a company to prosper. An analysis of the causative actions and events that influenced the situation can yield uniquely human insight, getting beyond the what of the situation and on to the why. A deep understanding of these data-driven issues will aid industry experience and intuition in the decision-making process.
The Human Factor
Compiled together, all of this insight allows for managers to be well-positioned when making important decisions. Instinct alone is not enough, because the right decision for one company may not be the right one for another company facing a similar situation.
Also, not only does the information ERP provides not only eliminates the need for guesswork; it saves valuable time that would have otherwise been spent tracking down the facts needed. This allows employees to stay focused on their duties with fewer interruptions.
Lastly, ERP-based decision making also eases the transition of an aging workforce. Retirement-age employees were manufacturing products long before many modern tools were in place. As Baby Boomers retire, taking their skills, experience, and cultural knowledge with them, younger generations are left to fill their shoes. The younger generation, while more savvy with technology than any before them, lack this hands-on experience. By essentially hardwiring best practices into an enterprise’s processes, ERP bridges this gap to minimize the risk of the decisions they are now required to make.
ERP does not make decisions for a company. Rather, it leverages human insight by giving decision-makers everything they need to make the right decision for the benefit of the entire enterprise. For more on what a modern ERP solution can do for your enterprise, get in touch with Cre8tive Technologies & Design today.