Public Sector

Why ERPs Are Not the Best Solution for Public Sector Budgeting

Originally designed for the manufacturing industry, Enterprise Resource Planning (ERP) system have expanded to other industries, including public sector organizations like local governments and related agencies, higher and K-12 education and healthcare.


Acting as a jack-of-all-trades solution, ERPs contain multiple generic applications designed to manage the flow of data between business units of an organization, including finance, human resources, procurement, distribution and other departments.


However, how public sector agencies budget is always evolving. ERPs are too generic to keep up with the rapid change taking place across organizations including the flexibility and functionality to budget successfully. The ability to handle forecasting, scenario budgeting, allocations, priority-based budgeting, and other functions key to the public sector, are severely limited in most ERP systems. Data is notoriously difficult to retrieve from ERPs and while work-arounds like spreadsheets provide a quick method for getting a budgeting report, they don’t provide the insights public sector agencies need to make data-driven decisions.