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:
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.
- 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.
- 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.
- 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.
- 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.