1. In a situation when you don't have, but need:

• Full control over what is happening in the company, including the control of business processes;
• Efficiency and accuracy of fulfillment of operational processes.

For example, if the accounting in production is maintained in Excel tables or in a specialized program. Warehouse accounting works in its own accounting system, accounting - in the accounting software. Data is transferred from division to division in the form of paper documents, and sometimes even verbally, and then manually entered into the necessary accounting system.

This approach is very dependent on the human factor, as a result, information comes with delays, often significant, and in some cases some data do not come at all, which leads to malfunctions, the need for regular reconciliations, etc. Moreover, any error and subsequent correction can lead to significant losses. There are downtime, write-offs of scrap or excess goods in stock, failure to meet deadlines under contracts with customers, etc.

In case of implementation of ERP system a single database is created, in which all information used by different departments is gathered. In this case, the percentage of errors is significantly reduced, because the data is entered into the system once by a specialist, and then read out automatically by all departments in the format and coding necessary for work.

ERP system is necessary for companies for which the speed and accuracy of data transfer between departments is a critical factor.

2. In a situation where there is automation, but business processes are too complex: integrating different systems no longer helps. Another case when you can not do without ERP-system is situations when, as the company grows and develops, complex processes requiring a significant amount of data exchange appear. At a certain stage, integration between several software solutions becomes complicated, cumbersome and unprofitable. An ERP system becomes the solution to this problem.

3. In a situation when current systems do not allow to quickly adapt to market conditions and customer requests. Also in a situation when a company plans to scale. If a company is aimed at maximum compliance with constantly changing market conditions and customer needs, it simply needs an operative data exchange between departments and making management decisions.

A small company, in the case of atypical orders or changes in the volume of purchase of certain goods, can do without ERP-system. When all employees work in one small office, it is always possible to coordinate actions among themselves, and the order is formed based on data from orders, even in Excel-tables. In medium-sized businesses, where there are several subdivisions, branches, possibly their own production, the availability of a unified database and operational data exchange in the face of changing customer needs become critical. It is important that all information is collected in a short time, timely purchases are made, and prompt changes are made to the production and delivery plan. This is where a unified system with a common database is essential.