A study conducted by Allied Market Research has shown that the global ERP solution market will cross the $40 billion mark by 2020. The study clearly shows the importance this business tool holds for entrepreneurs. That said, it’s also true that many business owners are yet to comprehend the benefits that ERP brings to their business.
For the uninitiated, enterprise resource planning, or simply ERP, is a centralized system to help companies manage their business functions. From staff and customer management to inventory control and stock management, ERP helps in streamlining every business process. It is highly applicable in supply chain management. No wonder healthcare, hospitality, construction and many other industries rely on ERP for better business operations.
Let’s take a look at why ERP software solutions are even more so important in 2019:
Improved Return On Investment (ROI)
Although ERP software solutions may come across as a sticker shock, this big investment also brings along many cost saving benefits that eventually lead to a remarkable ROI.
The first and foremost advantage is unifying of many fragmented business processes. This centralized system helps you bring account payments, product development, many tools can be integrated into one ERP solution. This gives you a one stop solution for your organization in the form of a simple dashboard.
Unifying all the systems and processes on one platform makes operations more time effective. A central database ensures all the required information is accessible to everyone using the ERP software. One stop solution also saves the time required to train users for multiple tools.
Features and interface of an ERP solution may vary depending on the nature of the ERP software you choose, but the core idea is to enhance teamwork. Easier and more streamlined communication and collaboration between various teams keep the synergy optimized.
The centralized system of ERP solution ensures minimised data redundancy and thus, plays a vital role in keeping data optimization costs low. At the same time, being a single source of all the records helps staff members access the information from one point.
With company-wide data at their disposal at one point, process management and decision making get quicker and more efficient in comparison to relying on various tools. Data is also updated, compiled and stored in a secure way, minimizing data error instances.
With a localized data storage and all the ERP records stored at one place, ERP solutions are an amazing business intelligence tool. Generating reports the conventional way may take days, if not weeks, but with ERP, it’s just a matter of a few minutes.
Ask your ERP software solution partner to create a dashboard that suits all your requirements. ERP development, contrary to the belief, is not rocket science. It’s just a matter of experience and expertise. Ask your ERP developers for a dashboard that compiles incomes, expenses and KPIs and other insights on a routine basis.
Such enhanced analytics give you access to insightful data that helps you in making more informed decisions. Moreover, access level reports also make sure only the concerned person or profile is able to view the reports.
What’s common between managing inventory, tracking timesheets & delivery, monitoring orders and reporting & generating reports? They are all tedious processes and take up a lot of time of staff. Doing all these tasks the traditional way renders them prone to human error, while bringing employee morale down at the same time.
ERP’s automated system can take these hassles and risks away, giving your team the time and freedom to focus on tasks that matter more. Better management is all about getting more things done within the same time window, making ERP development even more so important.
Improved Customer Satisfaction
Customer satisfaction has always been a major point of concern of every business owner. The digital age has witnessed more customers coming on board on a daily basis. This is where the power of automation saves the day for entrepreneurs.
ERP software solutions we know today are made CRM compatible. As a matter of fact, many ERP development companies also ensure to integrate a CRM within the system.
This allows business owners to deliver high quality customer focused services. Such a holistic approach can help business owners improve customer satisfaction and also improve their lead conversions.
Better Risk Management
With all the financial and operational data stored at one location, analysts can predict any and most of the upcoming risks. This gives them ample time to find a solution or create a new plan of action. Moreover, automated systems minimize accounting mistakes, thus making the accounts and finance department even more efficient.
Improved Business Compliance
The biggest challenge of a growing business is to stay compliant with industry policies, especially when they scale into foreign markets. Automated ERP solutions help you create work policies that meet the industry regulations of these countries, including, but not limited to human resources, information security and environmental regulations.
Better Resource Management
Enterprise Resource Planning, the name it all, doesn’t it? ERP software solutions not only help businesses in stock keeping and inventory control, but also aid in streamlining the operations process. ERP helps in assigning resources as and when required, ensuring there are minimum bottlenecks and deadlocks.
Enterprise resource planning is nothing short of a backbone for smooth business operations. With the plethora of benefits the software solution brings to the organizations, businesses of today’s digital age simply can’t expect to work efficiently without one.
ERP software solutions are expensive, and yet, they bring a whole new level of ROI with:
- Improved ROI
- Improved Teamwork
- Enhanced Analytics
- Better Productivity
- Improved Customer Satisfaction
- Better Risk Management
- Improved Business Compliance
- Better Resource Management
So, now the question is, do you want to maximize your business efficiency with an ERP solution, or do you want to maximize your business efficiency with an ERP solution?
Gautam Sharma is a Senior Content Writer at Code Brew Labs. He is a keen researcher and likes to write blogs that are easy to read and deliver information effortlessly.