IT plays a key role in modern businesses and allows them to enjoy a competitive status in the industry. However, many times the businesses might discover that their IT system is adding more complexity than solving the issues- without any specific, single reason. The reason lies in the detailed review of your IT management. Often, the key reason is using different IT systems for different departments that multiply complexity and affects performance. In this blog we will learn how you can solve this issue with the help of ERP and how to identify ha your business is the acute need of the ERP system:
What is the ERP system?
ERP or Enterprise Resource planning is the software that integrates seamlessly with the different activities and company operations like Human Resource, finance, sales and marketing, logistics, production, and client relationship management. By offering a single platform for different departments it helps the businesses to get the best out of the available business resources by streamlining planning, monitoring, and utilization. Here are the key components of the ERP system
• Distribution & Management
• Financial Accounting
• CRM operations
• Sales figures
• Resource Planning
Should I opt for the ERP system?
There are various factors indicating that you should quickly adopt the ERP system in order to make your business operations commercially beneficial and gaining the most out of your business activities. Here are a few of them:
Discrepancies due to different systems
Different departments work in tandem to facilitate a single transaction or to collect, monitor or process the information. For instance, your marketing department research the strategies of competitors creates awareness about your products/services and connect you with potential clients. Then the qualifying leads are sent to the sales department and after completing their task the sales department push it to the accounts department to receive the payables.
- Every department using different systems for its respective tasks adds more time and complexity to the workflow thus increasing the time to market
- Using different systems at office and warehouse creates gaps in taking the orders and delivering the same to the client thus it creates dissatisfaction
- Unnecessary stress, lack of accuracy and unnecessary chaos are some other negative issues of using different systems for different tasks
With ERP system the different systems can be seamlessly integrated so as to bring them on the same platform and allow different teams to function smoothly using one database that offers accurate and updated data. Along with reducing the time and efforts it also eliminates the technical differences and discrepancies created by the difference of systems thus saving your staff from unnecessary stress. The saved time and efforts can be used for more productive purposes to achieve core business goals.
Lacking quick access to updated metrics
Performance metrics of different departments play a decisive role in determining the present status and commercial viability of any business. If you require a long time, complex process and collecting data from a different department to find out the metrics like sales margin or average order size then you may be at the risk of losing grasp over the commercial viability of the business.
- ERP solutions allow them quick access to the latest status at any point of time and also keeps the top management updated about the current business operations so as to gauge the gaps and review their position vis-a-vis their closest competitions.
- Updated customer records encourage sales department to increase the renewals while allowing the marketing department to identify the up selling opportunities and finding viable ways to improve the same.
Complex and time-consuming accounting system
Using different systems for sales orders or invoicing creates logjam and burdens your account department with additional clerical tasks of entering the different bills into their systems. Along with consuming more time and efforts it also exposes the process to the human errors that can multiply the complexity and further delay the things. In short, it effectively reduces the RoI on your manpower investment.
- Consolidating different financial and entries on a common database eliminates the need for manual entries.
- It adds agility and streamlines the processes thus helping the accounts employees to submit mission-critical accounting records in a timely manner.
Poor sales and unsatisfied customers
Timely availability of key products in sufficient quantity helps businesses to instantly tap the available opportunities. Separate systems and records cause discrepancies and create gaps between marketing and sales processes. It also adds laxity to the ordering process and creates shortages thus reducing the overall sales.
- ERP system promotes healthy coordination across marketing, sales, and logistics department and thus ensures timely availability of the products to meet the upcoming sales requirements.
- As the entire updated information is available on a single platform it relieves the employees from unnecessary to-and-fro communication with different departments and allows them to handle the queries more efficiently.
- It empowers every department to cater more effectively to their respective duties, be it marketing products, handling sales, tracking payments, or providing assistance.
- Moreover, it also reduces unnecessary communication by empowering the clients to online access the updated records.
Complicated IT management
Complex IT managements hurts business objectives. You end ups investing too much time in maintenance integration and upgrading if different systems that reduce productivity. It makes your systems prone to human errors like negligence and discrepancies. For instances failing to upgrade the system restricts you from improving the performance while patching the security can make your business an easy target for the hackers and malicious elements.
- ERP system, on the other hand, offers a single updated system that facilitates the tasks of maintaining, upgrading, and patching. Thus your business enjoys improved performance, maximum security against the latest threats and maximum stamina.
ERP or enterprise resource management proactively helps the businesses at the maximum potential of its resources by streamlining the processes and enabling updated information across multiple channels those results in agility. In this blog, we have mentioned various instances and factors that clearly indicates that it is the high time you should adopt an ERP system for your business.