Importance of ERP
With the increasing use of ERP, the value of ERP is estimated to be $41.6 billion by 2020 the significance of the system is realized. While it is a big number, the businesses who have not implemented the ERP system yet, find it difficult to understand the importance of the ERP system. The increasing edge of competition these systems offer, it is inevitable for the businesses to implement whatever tools they can lay their hands upon. These systems optimize the business processes and operations by giving a centralized access point to the business and allows the data communication between the various business departments. For many companies, this goal is realised through the implementation of ERP.
Let us see why ERP implementation is significant to the growth of the business.
Uses of ERP
With ERP system implementation, the businesses integrate their business functions using a centralized system. Usually, ERP systems are used by the companies which involve business functions like supply chain management that keeps track of the movement of goods during product manufacture and distribution. However, ERP is not limited to these industries and business functions. These days, ERP is implemented in various fields that include healthcare industry, non-profit organizations, construction and hospitality management. ERP benefits are reaped by the organizations that are required to manage their staff, customers and the inventory.
The most significant and beneficial feature of the ERP system is that it allows all the data to be centralized. This centralized data can be accessed by various departments of the company allowing the flow of data and information through various departments.
Why should you use ERP systems?
ERP is capable of managing a lot of business functions but why is it so advantageous to the businesses how is it better than other systems that integrate the business data and modules. We will see five reasons why ERP system holds so much of significance.
1. Cost Effective
ERP systems remain a large investment even though system vendors have introduced reduced rates of the system. For many businesses, this cost remains significant and hence, one would ask how is it cost-effective. But once, you move on from the shock about the initial cost, it becomes obvious how ERP systems can provide an increased ROI in any business.
ERP unifies many business modules, functions and internal processes and centralizes them, which may seem disconnected in your business before ERP implementation. From product developments to payable accounts, your employees will be able to access every information because of the centralized nature of the system post ERP implementation. With the centralization of the entire system, comes the time-saving tactics.
As information is easily retrievable through every department, it saves time and the employees can direct their strength to different tasks that require more importance. Moreover, it saves you money from training its users across various systems in various departments.
2. Enhanced Collaboration
The benefits of ERP systems vary slightly depending upon the type and version of ERP you have implemented, but each of the version provides and improves collaboration and integration in one way or the other. Erp has become unique because of its ability of integration and centralization. With the integration, errors in the functions can be reduced significantly.
Moreover, the delay in executing any project is almost removed because all the employees are given centralized access to the system. Plus, the need to merge information from all the departments is eliminated. Because of the compiled data, that is shared, integrated and accessed through centralization, the concern about the accuracy of data is almost negligible.
3. Enhanced Analytics
The integration and centralization provide ease of analytical report generation. As ERP stores all the data and information centrally, it turns your database into a powerful business intelligence tool. And this leads to enhanced report generation that is quick and easier. Moreover, different kinds of reports can be generated according to the changing factors and parameters.
Most ERP systems provide a customizable dashboard that is easily accessible to the executives as soon as they sign into their respective systems. With the ease of access to quick reports, the decision-making process becomes fast thereby eliminating the delay in executing the business functions. You don’t have to rely upon the IT staff to generate the report.
4. Increased productivity
In the absence of ERP implementation, the tedious tasks become unavoidable. With ERP implementation, comes the time-saving methods because of tasks like report generation, inventory management, tracking the timesheet taking up lesser time than usual. In addition to this, human error is also reduced to a great extent. The ERP database management does not allow redundant data and tasks which in the long run, increases the ROI of the business.
5. Satisfied Customers
With the increasing importance of the role of the customers, customer satisfaction has become primary and of high priority. ERP is equipped with CRM module which is easily integrated into the existing business system. While the storage of contact information of the client, it also displays and stores the information about the order and billing history of the client. This information gives the business a holistic approach towards their clients and understands their requirements better. Eventually, it helps to strategise your sales and marketing strategy.
The gist of the story
The importance and benefits of the ERP systems outrank the cost behind its purchase and implementation if you know the solution that works for you perfectly. Our team at Upstackers can guide you in finding the right ERP solution for your business and its functions and operations. They can help you research your requirements and help you in buying the right system that can eventually help your business grow and increase its ROI, with increased customer satisfaction.