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Is an ERP Solution Worth the Investment?

Every business owner, whether running a big enterprise or a small startup, strives to achieve efficiency. This is an important goal as research indicates inefficiency costs an organization up to 30% of their revenue each year. Moreover, it also wastes time and valuable resources of the company. There are several ways to reduce inefficiency, the most effective of which is to integrate digital solutions that can streamline all tedious tasks. ERP implementation is a common example of digital integration which leads to smoother operation and better results. It is a big investment to think of, but it comes with countless benefits. An entrepreneur makes big financial decisions every day, therefore it is essential to conduct a cost-benefit analysis before investing in a new solution. Listed below are a few benefits of an ERP system:


Effective Communication
Automation of the communication system in an organization results in a faster and easier correspondence between the employees and the customers. It allows a quick and steady flow of information down the value chain. It can also lead to more effective and transparent internal communication. Easier access to information through ERP leads to greater productivity. Reports can be generated and shared in a shorter time, problems can be detected quickly, therefore, timely solutions can be formulated. The availability of the business objectives and real-time data at the fingertips empowers the employees and motivates them to work harder.

  1. Centralized Information
    Multifunctional ERP systems store all the date in one place and allow it to be accessed independently. Information from all departments such as Human Resources, R&D, Marketing etc. can all be stored consistently in one database. This allows greater efficiency as disorganization of data can lead to misinformed decisions.
  2. Freeing Up Labor
    Instead of working long hours manually filling spreadsheets and exporting data, the employees can focus on work that actively requires their attention such as building customer relationships and focusing on revenue-generating activities. ERP eliminates the need for repetitive manual data entry, thus reducing the cost associated with errors made by overworked employees. The staff will, in turn, be able to channelize their energies into areas where they are needed which will result in better decision making and increased productivity.
  3. Competitive Edge
    Even though an ERP system might cut a big portion of your company’s finances, it is the best tool in this age to keep up with your competitors as all modern businesses are moving towards digital solutions. According to a study conducted by Gartner, Inc., 25% of businesses will lose their competitive ranking due to inefficiency in adapting digital business solutions.
  4. Unified Costs
    A centralized, multifunctional ERP eliminates the need for multiple systems to conduct the various tasks in any business. Dedicated programs and their associated costs such as infrastructure, licenses, training, staff etc. are no longer needed when an ERP can unify all functional areas of an organization, thereby, cutting costs in the long term.
    In light of the above-mentioned benefits, it is evident that a one-time investment on an ERP that is customizable and caters to the needs of your company can expect to prove extremely beneficial for the growth and development of the organization.
Are Cloud Computing Solutions the Way Forward?

Are Cloud Computing Solutions the Way Forward?

Cloud Computing is a technology that has become relatively common recently and thousands of companies all over the world are using this technology in order to move forward in their fields. Basically, what cloud computing does is that it allows its user to get the same level of IT-based services without the need of having a physical server at the workplace. Web-based access to different applications as a service are provided by the vendor on either contract and usage basis. There are multiple advantages of computing solutions which indicates that it really is the way forward. Some of these advantages are discussed below.

Flexibility:

A major advantage associated with cloud computing is the flexibility that it offers. If your business is in a growing phase and your requirements for different computing services is fluctuating with demand then cloud computing is perfect for your corporation. Scaling your services becomes extremely easy when you are using cloud computing which gives you a major advantage against your competitors.

Reduction in Capital Required and Overall Costs:

One of the keys to the success of cloud computing especially in small and medium enterprises is that it is cheap. At one hand you won’t be needing any sort of capital that would be required if you were to set up your own on-premise IT department. Furthermore, the actual cost of cloud computing is very less. You can choose any package according to your needs. You can either pay for whatever services you are using or you can select a package according to too your needs. As opposed to this if you don’t choose cloud computing and want to set up your own IT department, the upfront capital required is very high. Not only will you have to buy different computing machines but you will also have to buy servers, data centers and hire extra people for its integration and maintenance.

Work from Anywhere:

Cloud computing has really revolutionized the way we used to think about work space. Cloud computing gives you great freedom in terms of where you want to work from and what device you want to use for work. It essentially removes the need to have any proper working space by allowing all of your employees to work directly from their houses. This is great in terms of saving money as well as giving your employees the freedom to work from home. Another advantage of this is that you can do all of your important on the go. You don’t have to wait to get to the office if you want to send a quick reply to any customer, with cloud computing you can do that directly from your cell phone or tablet.

Security:

Another advantage of cloud computing is the security that it provides to all the sensitive data of your organization. As all of the data is saved on a cloud you automatically get the disaster recovery option and you don’t have to spend any extra cash. If you are worried about data theft from within the company cloud services allow you to have complete control over the files and only the employees with permission can access different types of files.

Conclusion:

As evident from the information mentioned above, it won’t be wrong to state that from the business point of view, failure to switch to the cloud computing solutions disables you from having the edge that you could have in the market. Since your competitors are already making use of such solutions, you would only be left out of the competition if you don’t make the right decision today. The losses may seem minute as of now, but they accumulate quickly and can turn into a major loss of profitability for your business in the long run.