Who should use ERP software?

ERP software is ideal for businesses of all sizes seeking efficiency, scalability, and innovation. However, it is generally more commonly used by larger organisations and governments, with more than two-thirds of large businesses using ERP technology. Good ERP software isn’t cheap, so smaller businesses may find it easier to implement multiple technologies at first.

At TechnologyOne, we specialise in serving key sectors including local and federal governments, higher education and vocational institutions, asset-intensive industries, and healthcare providers.

Over 73% of residents in Australia and New Zealand live in councils powered by TechnologyOne software, and our solutions empower more than 60% of higher education institutions across the region. Government departments and agencies also rely heavily on our purpose-built ERP software to meet their unique compliance, regulatory, and operational demands.

Best-practice for comparing ERP vendors

Choosing the right ERP software is vital: the right ERP software will transform your organisation from top to bottom but getting it wrong can cost both time and money (more on that later).

ERP systems are not one-size-fits-all, so there are a few things you can do to thoroughly compare ERP vendors to find the right one.

When evaluating ERP vendors, look closely at their proven industry expertise, implementation methodology, and customer support model. Seek providers that deliver intuitive, fully integrated systems rather than fragmented solutions that rely heavily on third-party consultants.

Ensure they offer robust security credentials, such as IRAP accreditation, transparent and predictable pricing models, and a clear roadmap for continuous innovation and ongoing upgrades.

You can read a thorough guide to comparing and choosing ERP systems in our article below:

The top benefits of using an ERP system

There are numerous benefits to using ERP software if used correctly. We’ve narrowed it down to eleven – yes eleven! Click the links below to see each one:

• Long-term savings
• Increased productivity and efficiency
• Real-time data visibility and smarter decision-making
• Stability and growth support
• Better financial management
• Enhanced customer and community service
• Supply chain and asset optimisation
• Workforce mobility and increased collaboration
• Environmental and sustainability benefits
• Faster implementation and time-to-value
• Broader economic impacts

ERP benefit #1: Long-term savings

One of the key attractions of ERP software, particularly SaaS ERP solutions, is the significant long-term savings they can potentially offer businesses. By streamlining processes, removing duplication, and reducing infrastructure overheads, ERP systems deliver considerable cost reductions over time when done right.

Research from IBRS and Insight Economics, commissioned by TechnologyOne, confirms that migrating to SaaS ERP typically leads to substantial Total Cost of Ownership (TCO) savings, accounting for about 32% of total benefits realised. Additionally, Panorama Consulting’s 2023 ERP Report highlights that 83% of organisations reported their ERP projects successfully met their expected ROI targets, underscoring ERP’s strong track record in delivering anticipated financial benefits

ERP benefit #2: Increased productivity and efficiency

A core benefit of implementing an ERP system is the significant boost in productivity and operational efficiency it provides. ERP software automates and streamlines repetitive tasks such as payroll processing, inventory management, financial reconciliation, and data entry, freeing up valuable employee time to focus on strategic initiatives and higher-value work.

According to the 2023 ERP report, approximately 78% of businesses reported improved productivity after ERP implementation, with 66% specifically highlighting increased operational efficiency.

Real-world examples reinforce these findings. At the City of Newcastle, adopting TechnologyOne’s ERP system allowed staff to eliminate 80% of manual timesheet processing, significantly reducing errors and administrative overhead.

As a result, the team was able to redirect their efforts towards more strategic, community-focused initiatives.

ERP benefit #3: Real-time data visibility and smarter decision making

ERP software centralises data into a single, easily accessible system, providing real-time insights critical for making strategic decisions.

That 2023 ERP Report revealed that more than three-quarters of organisations implemented business intelligence to become more data-driven. Of the companies that successfully realised benefits from implementing ERP software, 65.9% of them found their real-time data use was better than before.

Real-time analytics from ERP systems enable organisations to proactively manage resources, forecast accurately, and respond quickly to changing circumstances—enhancing both operational agility and competitive advantage.

ERP benefit #4: Stability and growth support

Modern ERP systems, particularly SaaS solutions, offer the scalability organisations need to support sustained growth and operational stability. ERP technology simplifies expansion by eliminating infrastructure constraints, allowing organisations to seamlessly adapt to growth without significant additional investment.

This flexibility is crucial for councils, educational institutions, and businesses alike, providing the capacity to manage increased workloads and respond swiftly to evolving demands.

ERP benefit #5: Better financial management

Effective financial management is crucial for long-term organisational sustainability, and ERP systems are instrumental in achieving this goal. As an example, 61% of local councils in Australia and New Zealand see financial sustainability as an immediate priority, according to research from KPMG.

ERP software provides detailed, real-time financial data, supporting more accurate budgeting, forecasting, and expenditure tracking.

Metro Memorial Parks (MMP) in Sydney recently transformed its financial planning and budgeting capabilities by TechnologyOne’s integrated Financials solution, driving significant savings.

“We’ve gone from having three different finance system licences, two procurement licences, and two budgeting licences, to having one agreement in place, which is a SaaS service,” Simon Officer, Chief Financial Officer at MMP said.

“Overall, we are saving well in excess of the investment we made with TechnologyOne.

“Our team members have embraced the system, and it’s great to see the difference it’s making in their daily tasks."

ERP software not only enhances financial oversight but actively promotes smarter financial management practices across organisations.

ERP benefit #6: Enhanced customer and community service

The numbers don’t lie: just over 70% of organisations reported an enhanced customer experience because of implementing new ERP software. With most of the world’s information available from a smartphone or computer, people expect seamless and easy interactions online.

Modern ERP systems empower organisations across various industries - such as local and federal governments, education, healthcare, and asset-intensive sectors - to significantly enhance their customer and community services.

TechnologyOne’s Digital Experience Platforms (DxP), DxP Local Government and DxP Student, offer user-friendly, intuitive digital portals tailored specifically to council residents and university students, respectively.

By enabling easy access to information, streamlined digital interactions, and real-time service requests, DxP solutions enhance customer satisfaction, improve community engagement, and ensure a seamless digital experience tailored to each user's unique needs.

ERP benefit #7: Supply chain and asset optimisation

ERP software significantly enhances supply chain and asset management capabilities by providing real-time visibility, streamlining procurement, and optimising resource allocation. Effective supply chain management is crucial, as automating inventory management processes substantially reduces handling costs and optimises cash flow, improving overall operational efficiency.

In the 2023 ERP report, optimised inventory levels (90%) and interactions with suppliers (76.2%) were the most common and fourth-most common benefits among organisations using ERP for at least one year.

Organisations across industries face substantial pressure to manage increasingly complex assets efficiently. The Australian Local Government Association, for instance, estimates that local government assets in poor to very poor condition have replacement costs ranging from $50 to $55 billion.

TechnologyOne's Enterprise Asset Management (EAM) and Supply Chain Management (SCM) solutions address this by providing organisations with a single, centralised digital database, replacing fragmented manual systems and enabling strategic, informed decisions regarding asset maintenance and replacement.

Some examples of these products in action include:

• Southern Downs Regional Council using TechnologyOne’s software to centralise asset management and enhance decision-making, significantly increasing investment in community infrastructure and assets.
• Clarence Valley Council leveraging TechnologyOne’s mobile Field App to complete a full year's worth of bridge maintenance tasks in only six months, leading to substantial operational savings and improved asset reliability.
• Shoalhaven City Council using AI-powered TechnologyOne asset management solutions to proactively find and repair more than 10,000 road defects in three months, dramatically improving road safety and optimising resources.
• Noosa Council similarly employing TechnologyOne’s AI-driven asset management system to rapidly identify and repair road issues, enhancing public safety and maximising council resources.

These practical implementations illustrate the transformative impact ERP solutions can have on asset management, supply chain efficiency, and overall service delivery.

ERP benefit #8: Workforce mobility and increased collaboration

Modern ERP systems play a crucial role in supporting workforce mobility and enhancing organisational collaboration. With cloud-based ERP solutions, employees can securely access critical information and systems remotely, empowering teams to work efficiently from anywhere. According to research from Randstad, 63% of employees now structure their lives around hybrid and remote work, making mobility essential for productivity and employee satisfaction.

By providing a unified, accessible platform for collaboration, ERP software such as TechnologyOne’s Human Resources & Payroll (HRP), helps eliminate departmental silos, enabling smoother communication and more efficient teamwork. Real-time access to centralised data ensures all team members are aligned, informed, and able to collaborate seamlessly, regardless of location.

ERP benefit #9: Environmental and sustainability benefits

Adopting ERP software plays a significant role in achieving environmental and sustainability goals. According to the IBM Institute for Business Value, organisations that deeply integrate ERP into their processes not only outperform their competitors financially but also achieve superior environmental outcomes.

This is largely because modern ERP systems provide comprehensive data visibility, enabling better tracking and management of resources, waste reduction, and improved energy efficiency.

TechnologyOne’s experience demonstrates these benefits clearly. For instance, the City of Newcastle significantly reduced its environmental footprint through ERP-driven automation, eliminating approximately 12 tonnes of paper annually—a saving equivalent to one billion litres of water each year.

Similarly, the City of Unley leveraged TechnologyOne’s Enterprise Content Management (ECM) solution to digitise records management, reducing off-site paper storage by 70 linear metres each year.

By enabling digital transformation, ERP systems not only streamline business processes but also actively contribute to sustainability objectives, making them essential tools for modern organisations aiming for greener, more sustainable operations.

ERP benefit #10: Faster implementation and time-to-value

One significant advantage of modern ERP systems, particularly SaaS-based solutions, is their accelerated implementation timelines compared to traditional on-premise systems. With solutions like TechnologyOne’s SaaS+, organisations can dramatically reduce the time-to-value. Metropolitan Memorial Parks (MMP), for example, was able to completely implement TechnologyOne’s software in just six months in 2024, a record at the time that minimised downtime and disruption.

According to the 2023 ERP Report, the median implementation time for ERP projects was 15.5 months, and almost exactly half of organisations reported these projects being completed on time. The general rule is that larger companies need longer ERP implementation timeframes, with the median time for large companies rising to 18 months.

Faster implementation means businesses and councils can swiftly adapt to changing conditions, capitalise on market opportunities, and immediately start reaping the rewards.

ERP benefit #11: Broader economic impacts

The broader economic benefits of adopting ERP, specifically through a SaaS model, could be transformative on a national scale. IBRS and Insight Economics' research found Australia’s economy could save approximately $252 billion over the next decade by shifting to SaaS ERP technology.

These savings predominantly stem from improved productivity (54%) and significant reductions in Total Cost of Ownership (32%). Furthermore, increased adoption of domestic SaaS solutions could result in substantial employment growth, creating around 75,000 new jobs and boosting GDP by 1.3% annually.

“There are numerous benefits to moving to SaaS, which is clearly highlighted in the research. SaaS can deliver both the public and private sector substantial cost savings and other business benefits including increased productivity, an enhanced customer experience and reduced cyber security risks,” the report said.

For the full findings and more information on the economic benefits of SaaS, download the research here.