Table of contents
Resources, the most important term in today’s generation! Don’t you all think so too?
For the growth of an enterprise, it is important to manage its resources most efficiently. The term resource can imply anything – stock or supply of money, materials, employees, and any other asset of the organization, that enables the business to function effectively. An ERP (Enterprise Resource Planning) solution helps you do the same.
It simply is a business process management software that manages and organizes a company’s finances, supply chain operations, reports, human resource activities, and so on. Multiple software managing different business processes like HR, finances, Marketing, etc, that never communicate to each other doesn’t allow an organization to function to its full potential. An ERP integrates the solutions to manage all business processes in a single platform bringing together all the processes and helps to create a seamless workflow.
It enables cross-functional collaboration between departments by connecting them and gives more opportunities to plan and streamline business processes.
Read more about Industry Specific ERP Solutions
Why is ERP necessary for a company?
We know that data has become the most important resource of the century and organizing and planning are necessary. An ERP stores all your business data into a single database, allowing all departments to work with the same information and thus break data silos within organizations. An ERP system thus enables organizations to manage all their business processes using a centralized and integrated system improving operational efficiency and productivity. It also brings improvements in making data-driven decisions.
Benefits Of ERP System
An ERP system provides better reporting tools with real-time information. Moreover, the advantage is that since it acts as a single source of truth for all business information and there will be no data redundancy.
Since there is better access to customer data, it improves response times, order accuracy, and on-time deliveries resulting in higher customer satisfaction.
With better inventory planning, customer service, and vendor relationship management, the company would save a lot.
Better Data Security:
Dedicated security resources, user-based access, and access restrictions, stringent password policies and encryption standards, etc in an ERP system ensures data security and prevents organizations from malicious software attacks.
Here is how an ERP system will help companies to stay ahead of the competition. Use data to help staff find new business opportunities.
- Configure and deploy applications that meet your requirements with little to no code development.
- Modernize business functions.
Where does ERP offer improvements in business?
An ERP finance module gathers financial data giving an overview of your finances and creates reports including financial statements, ledgers, profit tracking, balance sheets, etc. Thus, an ERP helps you cut down on entering information manually and lets you access data any time anywhere. The worries of accurately managing costs are also taken care.
An ERP HR module gives ideas on hiring, incentives, payrolls, and other tasks. Employee performance can also be tracked and even loopholes in the functioning of HR can be brought under control. When integrated with the Project Management module, it also gives an analysis of how much manpower is required on different projects.
An ERP system simplifies business communications within manufacturing organizations and automates daily processes. It offers manufacturers the ability to fulfill customer needs and also manage their resources seamlessly with the provision of real-time data.
No longer do the company’s sales details have to be handwritten or managed in Excel sheets and tracked manually, instead the ERP can track the inventory in the warehouse and a lot of time and money can be saved.
Signs that your company needs ERP:
What you already have isn’t letting you grow.
This is a sign that perhaps it is time for a new system that helps you work more in real-time and follow data-oriented processes. It is time to expand beyond the basics and grab the opportunity to grow beyond the competition.
Dealing with disparate systems
When your systems and software of different departments aren’t compiling and working well together it leads to a lot of confusion and wastage of time.
If your employees and customers are mobile and your system isn’t accommodating them, invest in one that meets everyone’s needs.
Why is it that some businesses are afraid to implement ERP?
FEAR: Are we choosing the right ERP solution?
The catch that you are missing is that ERP is a growing platform and it has a huge scope of growth, alteration, and development allowing you to scale the system as your business needs grow. This means that your solution doesn’t have to be perfect. The solution you look for must be one that helps your company to bring all systems together and helps you organize the resources. The right technology partner can guide you in selecting and implementing the right ERP by carefully assessing your business needs.
FEAR: What if the ERP solution is too expensive?
The Software you purchase doesn’t have to be the whole solution but can be modules that could be sold separately. This way there will be a lot of room for the teams to get accustomed to the software as well as the price won’t be as high as you fear. Later, you can keep adding modules as your business grows.
FEAR: We don’t want to disturb the current systems.
It is very common that organizations tend to delay upgrading to an ERP due to the fear of disruption that may be caused due to a new system, training the employees to use the new system, and so on. But the truth is delaying ERP implementations will in fact cost organizations more due to several untracked costs like delays in information sharing, errors due to system integration issues and manual work as well as rework, your employees’ time lost switching between systems and tracking spreadsheets, and so on. A well-planned ERP implementation project with effective change management can help you make the transition to the new system much more easily and can have a strong impact on the future growth and profitability of businesses.
Why are organizations afraid of getting into an ERP project? – Click here to read more
Reasons you should use ERP:
Readily adopt new technology
The use of new technology like AI or machine learning becomes very important to stay ahead in your business game. With ERP in the scene, it becomes easier to manage the change and the systems.
Access better tools
ERP helps you manage the changes and thus makes working with tools very easy and helps in the growth of the company.
Try to avoid the third-party system
With ERP helping all the systems to work together, they need to have a third-party help with the organizing and planning becomes null.
More security resources
The security invariably increases with 24/7 availability, especially for ERP on the cloud, meaning that there are full-time teams that are exclusively dedicated to proactively monitoring and staying current with cloud security issues and threats.
Attract in-demand talent
The next generation has grown with the access to the internet and technology. No company that relies only on basic technology will be able to recruit such young talent causing a huge loss to the company.
If you are still looking for some help on ERP system selection or implementation contact us
- 8 Step Checklist for Selecting the Right ERP Software for your business in 2021
- Why Do Businesses Need ERP Systems?
- Top 7 ERP Software for 2021
- Epicor ERP vs Microsoft Dynamics 365 – A Detailed Comparison
- Epicor vs Netsuite – Differences in Overheads