ERP Champions Growth.
Don’t let the name fool you. Enterprise systems were designed for the enterprise market. However, today, ERP and other business systems are widely available to both small, medium and large enterprises. Due to digital technologies, businesses are growing at a faster rate ever experienced, and so the demand for systems to support such business activities also develops. You might not see any benefits immediately during or after implementation. You have probably been too busy dealing with training, finding any additional resources, ironing out creases, budgeting and so on. Once you are over the hurdles that come with an ERP implementation, you can reap the rewards. At the same time, you nurture your business to continue to grow. We have explored an infographic created by Salesforce, introducing us to the real gains of opting for enterprise software.
Why is ERP software so useful?
Addresses data silos
A silo mentality comes in when departments within a company become reluctant to share information. Working in silos can disrupt companies work ethic, duplication of work occurs often, and efficiency suffers as a result. The primary purpose of an ERP system allows a business to run centrally with a fully integrated system. All functions can access the same system to manage business operations. This accessibility means individuals can view other team functions and processes, ultimately ensuring that everyone is working, with maximum effort, in synergy towards the same common goal.
No matter how many locations a company has, or how far and wide they stretch, communication is almost guaranteed to be better with an ERP system. All parties regardless of device or location, will be inputting, storing and sharing data. This data is unified in the ERP system and produces one version of the truth for all to see. Interdepartmental relationships are much more transparent, and information passed on to each other or customers is much more reliable.
Control over costs and savings
Businesses not using ERP most likely pay for and maintain several disparate systems. Upgrade to an ERP system, and you should only then pay to use and maintain one system. This software offers up more accurate data, let us use the supply chain as an example. You can see operational activities in real-time, thus making more informed decisions on reviewing and altering the supply dependent on the demand. It can also automate operational and administrative tasks, in turn, reducing overheads.
Better Planning & Fast task completion
When you realise the potential of ERP software, and you begin researching, one piece of advice you should take on board is to ensure you have thoroughly scoped out your business and its processes before you start engaging with vendors or consultants. The main reason behind this is to find processes that need improvement, those that require no work and those processes that are currently duplicated or redundant and can be removed. Before you have even chosen, let alone implemented your new system, you should see the benefit of merely putting thought to invest in one.
This is just the start. Once implemented, the automation of tasks enables you to plan and allocate resources more efficiently. The system can provide better task management and organisation of who is to do what and when.
A threat can breach an ERP system in several ways. Breaches could be financial, down to internal corruption, related to GDPR, core application attacks targeting specific areas of your business. It’s inevitable that with any new technology come data security challenges. But who is responsible for ERP security in the company?
The system provides functionality for you to reduce the threat to data security. One example is how modern ERP software enables you to create tiered user roles controlling what each user can access and see. This feature could prevent those without the correct authority level from accessing sensitive or personal information.
More flexibility via customised deployment
ERP is deployable in several ways; the most common forms are on-premise, in the cloud or some sort of hybrid solution combining the two. Depending on the results you want from the system and how your business operates will decide the best deployment for the company. Every business is different in its own right. So there is no definitive answer to the choice of either cloud, hybrid or on-premise ERP. However, we have weighed up both options to help you make an informed decision.
How does ERP generate profit?
Reporting and forecasting
An ERP system holds up-to-date, accurate information which is easy to access and provides clear and actionable jobs equipping you to serve your customers better. Reporting is indispensable for understanding how your business is performing. It’s easy to focus on what has been done previously and what is happening today rather than planning ahead. However, this passive mode of thinking will leave you lagging with market opportunities and emerging trends. ERP systems configured correctly will use business data to provide intelligence such as:
- Supply chain shortages or delays
- Demand forecast
- Financial planning
- A budget
- Employee schedules
- Customer insights
The list goes on. It would be impossible to access this kind of business wisdom without the right software in place.
ERP software provides an encyclopedic view of the information you have stored about your company. This ranges from company inventory to personal customer data that must be secured within your infrastructure. Look at GDPR for example, not an IT or software issue but a complete legal responsibility that affects everyone who collects and utilises the personal data of others. You can reduce the number of systems your company uses to store customer data by using an ERP system. An effective ERP solution provides a single source of the truth when it comes to client data and how you use it. Use regulatory compliance as a means of achieving a customer-centric business that demonstrates the value of customer data protection, quality control, traceability and supports transparency.
Both internal and external relationships can be improved with ERP. Freeing up employees from tedious and manual tasks gives them more time to dedicate to your customers. By nurturing those relationships and using knowledge from the ERP system, your staff can cater to each individual need.
On the other hand, interdepartmental relationships should get better. All data is stored in one place, and each employee has access to see the performance of the business. No longer will departments work in silos operating as individual business units. Instead, the company, as a whole, can collaborate as one to reach the overall strategic goals of the company.
Book your ERP consultation today by calling 01282 463 710 or email firstname.lastname@example.org. Lastly, why not find out what it’s like to work with Gradient by viewing first-rate testimonials from our clients.