According to the latest Mckinsey research, agile organizations are healthier and more likely to meet long-term performance KPIs than their counterparts. Moreover, such organizations are more likely to achieve:
- greater customer centricity,
- faster time to market,
- higher revenue growth,
- lower costs, and
- a more engaged workforce.
One way to improve the agility of your organization is to employ an ERP solution. Here we explore the advantages of utilizing an ERP system and outline five ways the right ERP system can improve agility and help you grow your business.
of all companies won’t survive in the next ten years if they fail to figure out how to change and transform their business to accommodate the latest technologies.
Source: East Innovations
Benefits of Implementing an ERP Software Solution: Key Areas
Enterprise resource planning (ERP) as a business process management tool can enable organizations to manage day-to-day business activities like:
- human resources,
- project management,
- risk management,
- compliance, and
- supply chain operations.
The right Enterprise resource planning software application allows these different departments to communicate and share information with the rest of the company.
Figure: 1Different departments integrating through an ERP
In other words, ERP software helps your business by making it easier for different departments to cooperate with just one interface.
Book a assessment to learn about the right ERP system for your company.
5 Ways a Modern ERP Can Help You Grow Your Business
Large ERP solutions often slip to the bottom of IT management’s agenda, but the growth benefits of ERP solutions—seamless, end-to-end integration across functions and business units—make them a fundamental asset for most large companies.
Moreover, the next generation of modern ERP solutions offers even more promising capabilities, both functionally and technologically. Below we explore just a few of the ways a modern ERP can help you grow your business.
Enhanced Insight and Visibility
ERP software provides complete access to important business processes by making data from different departments easily accessible to senior management. It provides a birds-eye-view of daily business operations like:
- Financial Accounting
- Management Accounting
- Human Resources
- Order Processing
- Supply Chain Management
- Project Management
- Customer Relationship Management (CRM), and
- Data Services.
The boost in visibility enables decision-makers with the information they need to not only control daily operations but also improve inefficient processes and reveal opportunities for growth.
Better Reporting and Analytics
Accurate and complete reporting helps businesses plan, budget, forecast, and communicate the state of operations to the organization and other interested parties, such as investors and shareholders.
ERPs make big data and big business a good match because they enable your team with a single, unified reporting and analytics system for every process. You also enable your team to analyze and compare functions across departments, without the hassle of multiple spreadsheets and emails.
Greater Efficiency and Performance
By linking far-flung departments, ERP systems make it easier for your team to interoperate. The easier it is for your team to interoperate, the easier it will be for them to produce high quality work, and perform at their best.
“Higher the efficiency, the higher the profitability!”
Properly implemented, an ERP software suite can greatly reduce or eliminate repetitive manual processes, which frees up your team to focus on revenue-generating tasks. ERP systems can also aid in the adoption of industry best-practice, and alignment across the organization.
Stronger Data Security
ERP software improves data security by limiting input to a single system, thus eliminating the avenues by which a hacker could infiltrate the system and/or steal information. Both on-premise and cloud-based ERP systems provide a higher degree of security than the alternative, i.e., merging information from multiple systems.
Additionally, most ERP software runs on a single database system, which enables centralized backups of your critical and sensitive data.
Improved Supply Chain Management
The feature-rich working environment of an ERP suite provides a range of important supply chain advantages and play a key role in several aspects of the creation and maintenance of a superior supply chain management process, including:
- Supply Chain Planning – ERP systems offer an easier and more flexible way to establish and alter the supply chain parameters.
- Purchasing, Procurement and Execution – ERP software applications provide a more effective way to manage the procurement and supply of goods, services and other resources that are needed to operate a successful supply chain.
- Monitoring and Maintenance – The ability to monitor, review and alter supply chain efforts and activities in real-time is essential for ensuring your business can maintain the flexibility needed to stay competitive and ensure cost-effective operations.
- Measurement and Assessment – ERP systems offer superior information aggregation and organization, which makes it easier to identify and address undesirable variances throughout the supply chain.
How to Choose the Right ERP System
There is no one-size-fits-all ERP system for every business, but there are features that distinguish it from other types of business software, including:
- Common database – Most ERP advantages stem from a common database that enables organizations to centralize information from numerous departments, and eliminate the need to manually merge separate databases.
- Single user interface – ERP systems provide the same user interface (UI) and have a similar user experience (UX) across all departments and roles. In other words, everyone uses the same interface and sees the same thing when they interact with the software.
- Process Integration – The right ERP system will enable your team to unify a diverse set of processes, and connect workflows that play crucial roles in the company’s success.
- Automation – A basic feature of most ERP systems is the ability to automate repetitive tasks like manual data entry, which saves time, improves efficacy and minimizes human error.
- Data Analytics – the most valuable aspect of an ERP is how it breaks down information silos, enabling your team to mix and match data from any part of your business into insightful reports.
The prospect of streamlined business functions and major boosts to productivity make ERP systems a good investment for any business owner. But which ERP system is right for your business? The answer to that question depends on your business.
Ultimately, the ERP system you choose for your business should not only make work easier, but also enable your team with the tools, time and information they need to improve business processes and set your company on a trajectory for growth.