5 Reason Why ERP Software Can Improve a Company's Business Performance?
by Omprakash N | 4 min read
Earlier, ERP software was considered a viable solution only for the large multinational companies and they used to have a dedicated IT team for deploying and maintaining this software. This was because there were a smaller number of business owners who were familiar with the features and practicalities of such software and solutions. And those who have had a misconception that only large businesses require ERP software to manage their convoluted and elaborate processes.
As any business expands and takes off to reach greater heights, the workload of administrators increases exponentially as the tediousness and complication of the tasks rise and the customer base expands. Inability to manage and fulfil these customer demands can derail your business, that too is a key phase of growth.
Moreover, with the accelerating need for faster response time, enhanced accounting and financial reporting, better regulatory compliance and security, mobility, and flexibility, businesses need a comprehensive solution like ERP software to cope with the cut-throat competition and meet the distinct demands of customers.
ERP software is an all-inclusive and integrated system that enables you to manage your business with just one system, thus, streamlining processes and increasing robustness. If you do not deploy enterprise-wide software like multi-faceted ERP software, you might juggle between different tasks, making it more complicated for you to manage everything. There are high chances that this mismanagement might lead to data errors, duplication of records or functions, lack of visibility into the business, lack of communication between different departments or areas of your business, and so on.
Further, to make it even easier and simpler for you to understand, we have collated a few reasons as to why you should incorporate ERP software for making your business a huge success:
Aspiring business leaders always look for innovative ideas and ways for expanding their business. However, considering the availability of funds or other complications, they might not always be prepared to take up the risk. Herein, ERP software can be efficacious for them as it will help the business owners stay ahead of their competitors by seizing opportunities based on the analysis of data and market dynamics achieved using software tools and capabilities. Furthermore, an ERP software plans resources to optimize processes and helps in minimizing costs.
When it comes to collaborating and gathering insights, companies relying on spreadsheets or hand-written notes to organize tasks and data will have to suffer as it is difficult to consolidate or share such data, leading to disparate information and departmental siloes. A competitive ERP software, which might be inclusive of asset management software as well, integrates and coalesces such data in one place and allows users to access this well-sought information. Moreover, advanced ERP systems have an easy user interface that is rich in features and provides a best-in-class user experience.
Employees would be able to search for any kind of information they want and would not lose track of data or struggle with deciphering someone else’s incomplete piece of information. Furthermore, such systems make drilling and collaborating data into reports simple.
Accurate accounting and financial reporting are pivotal to determining your business’s success during the growth phase. As your company grows, the complexity and tediousness of your transactions may become overwhelming, therefore, keeping a track of all the transactions may become difficult, leading to increased chances of errors, missing out on transactions, and faulty records.
However, with an efficient centralized system like ERP software, you need not worry about such challenges. These advanced systems increase the visibility and transparency of crucial operational data and negate the need for repetitious data entry work, helping your employees focus on other important tasks which directly impact the revenue of your organization.
Best-in-class ERP solutions have restriction controls that help in preventing data breaches. The ERP software keeps the important and valuable data concentrated on one point, such that the access points will be able to monitor easily. The dedicated admins who are responsible for integrating and managing the company’s crucial data can provide access rights only to employees who need it. For instance, HR managers can easily hide important and confidential information which shouldn’t be visible to every employee. They can customize and grant permission to employees just for viewing the financial data.
Additionally, admins can deactivate laid-off employees’ access when the employees leave the organization, keeping the privacy and data security intact. They can even track user activities to find out if there are any suspicious activities noticed in the system.
Irrespective of your business structure and target audience, usually the customers have high expectations and stay loyal to the brands who serve exactly what they want at the minimum cost possible, without compromising on the quality. The scope of customers’ expectations is inclusive of multi-channel experience, uninterrupted services, customized products, and so on.
By deploying an ERP system, all the departments of your organization can have access to a centralized communication tool that gives a 360-degree view of every customer’s communication, from the first point of contact to the latest one. Whenever a customer would get in touch to have his/her issue resolved or make an additional purchase, the employee assisting that customer can quickly review the communication and transaction history of the customer with the help of basic details, providing personalized and effective service to the customer.
Hitherto, companies believe that purchasing and deploying ERP software is a heavy investment. Apparently, the cost of deploying and maintaining the software can be easily recovered over a period by the additional revenue your business would be making. An agile, comprehensive, and customized ERP solution can provide unexpected ROI, in contrast, if you continue with your current disparate systems or deploy a standard ERP software, you might have to incur additional costs or losses.
To see your organization grow flawlessly, choose rightly, invest wisely.