Enterprise Resource Planning: 4 Signs Your Business Needs It

Enterprise Resource Planning is an integrated system of managing information within an organisation. ERP systems are becoming increasingly popular among businesses of all sizes, from SMEs to large multinationals. As adding value to business processes by increasing overall efficiency is the most noticeable impact. According to a research conducted by Panorama, “81% of organisations are either in the process of implementing ERP software or have completed implementation.” (ERP stats)

ERP systems include various software modules that may be used in different departments, while making it easy to combine information of these modules together. The requirements and size of the business determine the modules needed so that operations may run smoothly. The most common ERP modules used in businesses include

• Accounting and Finance Applications
• HR and Payroll
• Supply Chain Management (SCM)
• Project Planning
• Inventory Management
• Customer Relationship Management (CRM)

If your company is finding it costly to maintain separate systems for each department, introducing an ERP software may help in better management of resources. We have listed below a few problems which an ERP system may help eliminate:

1. Creation of data silos
2. Business processes are time consuming
3. Declining customer satisfaction
4. Your IT systems are too complex

1. Creation of data silos

Businesses having a different software for each department may face the problem of data silos. Data silos restrict efficient sharing of information between departments and may lead to process duplication data due to a lack of integration of systems. The process of attaining and changing information becomes a tiresome task since changes need to be made separately in each software.

However, if the company deploys an ERP system, data will be easily accessible and changeable for authorised employees in all departments, diminishing the need to have multiple software and data entries. This will save time and effort, leading to an increase in overall profitability of the company.

2. Accessing business data is time-consuming

Searching for information manually by going through files has proven to be an inefficient and time-consuming process, and results in lower productivity within the organisation. Instead of spending valuable time on finding information, invest in an ERP system which has the capability to generate information in real time.

If you are working on multiple spreadsheets, you will not have to search through them manually to find something, an ERP will do it for you. Make sure to research the NetSuite ERP Licensing Price for the scale of your organization and enjoy the benefits of a streamlined data management system. This solution not only saves time but also ensures that the information provided is up-to-date and accurate.

3. Declining customer satisfaction

If a customer is calling to follow-up on his/her purchase and the information required lies with another department, your customer support team may not be able to provide timely assistance, causing higher service time and a backlog of calls. However, if there is an ERP system in place, the customer support team can facilitate the customer with easy access to all information stored within the integrated system.

Customer satisfaction is one of the keys to success for a business. If your customers are not happy with the value they receive in exchange for money, your business may lose out on sales, ensuing less profitability in the long run. Therefore, it is essential to not compromise on good customer service, after all, customers are always right.

4. Your IT systems are too complex

If your IT team is lagging behind on performance, your IT systems may be complex or slow to work with. This might cause decline in the progress, eventually leading to to higher costs for the company.

ERP systems help reduce burden on the IT department. They will have to deal with lesser updates, security threats and would be able to match the progress of the company as a whole.

Conclusion

ERP systems are gaining popularity among businesses as they add considerable value to their processes. Not only are they cost-effective, but also save up on time, increase productivity and enhance operational efficiency. With multiple modules available for each department, businesses may pick and choose from a range of options, leaving out modules that do not fit their business requirements.

While an ERP system may be divided into modules, they can easily be synced-in with each other, eliminating problems of data duplication and isolated work flow. ERP systems seem to be a practical solution for companies facing data silos, time-consuming processes, declining customer satisfaction and complex IT systems.

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