We often listen phase - “time is money,” and it is more totally proven true for small scale business and firm owners, which cannot afford to waste a moment of time or resources.
This wastage of time and resources can be stopped by having a ERP (enterprise resource planning) Solution. Now let’s have an insight about the challenges a firm or a company faces without an efficient business management application and how they can overcome these.
What is an ERP ?
An ERP software is a super logical combination of core software components, which we call as modules, that focus on dominant business areas such as Finance, Manufacturing/Production, Product Management, Sales/CRM and Invoicing. Companies, based on the necessity of their business operations chooses the modules to use.
The essential objective of using an enterprise resource planning system is to provide one central repository for all information that is shared by all the various ERP features(product planning, development, manufacturing, sales, marketing, etc) to improve the flow of data across the organization
ERP provides a decentralized database with integral modules. Organizations with larger amount of data and records with multiple departments have to maintain inter-department information by double or multiple entries. But using an ERP, will reduce this efforts and will provide better data accuracy.
How ERP benefits ?
The fore-most benefit that an organization can gain from ERP (Enterprise Resource Planning) Software is that, as a the organization owner are relaxed that we have the best suite of tools that will overcome daily challenges of business execution and help to increase your growth rate.
The process automation is the outcome of ERP Application provides us quicker exchange of information related to business strategies and goals. Some other benefits of ERP are -
- Cross Department users on same platform – ERP software comprises of a decentralized database for cross departments, which keeps every individual department and their relevant users on the same ground of information, this in turn reduces mis-communication. ERP software creates the ability for all the team members to get in touch with other team members for better exchange of information.
- Resource Monitoring - An Organization can achieve productivity from business when they have a clean supervision over their resources productivity. ERP application helps you track the progress of every individual project’s phase and gives full-traceability for every phase and sub-phases of the project.
- Easy Business Analysis - Nowadays, advanced ERP solutions provides intelligent reporting system and analytic tools that can help organization owners to analyze and track profits and business gain as well as loss. This also, helps in tracking market trends, customer preferences, demand supply analysis.
Considering the example of Sales Agencies, so by Bussiness intelligence Tools of ERP organization can easily trace their higher selling products/services and can focus on other products that are not in trend any more, as per their understanding they can create strategy for production plan for the same. This in return, will balance the production and help in production forecasting.
- Efficiency - An ERP application get rid of data and processes redundancy and decreases the requirement of manually data feeding. The system will also improves business processes and make it easier and more efficient for organizations to gather information, regardless of department.
- Collaboration - It is practically impossible to say that, each department in a business can run their operations isolated from each other. Inter-department collaboration is the most important and often necessary part of the business. Because of the centralized data in the ERP, there stands no reason for the departments being not able to work together.
- Customizable and Flexible - Today’s ERP are highly scalable and flexible. As, they are not a fixed proportional system and can be customized to the unique needs of a business. ERP systems can adapt the rapid changes that are needed for the business growth, and ensures the organization about the flexibility of those new needs in the same solution rather than going for a new software application with those enhancements.
Choosing an ERP
While choosing an ERP, the stakeholders should be very careful because this decision will affect your business growth, user satisfaction over the features and must be cost-efficient.
One should keep these points in mind while choosing an ERP Solution -
- Technically Capable - An Organization must never compromise with the business process and workflow by adjusting with software’s capabilities.
Deficient features in the ERP System results in user’s dissatisfaction and resistance towards the system. This will indeed become a negative outcome of ERP Implementation.
- Business Process Adaptability - Even if a system is technically strong, but is of no use until it is easily adaptable to organization’s business logics. While selecting an ERP, one should try to use the Standard solution as much as possible and in hard cases shall go for customization.
As ERP’s are the solutions with global standards and set of rules and logics. So before customization, organization should be very careful about the changes that are pushed to the standard ERP application.
- Budget - Rather than going for the cheapest one, organizations should look for the right ERP system. While for many business, the overall cost of the system and implementation will be at the top of their list when it comes to the evaluation.
Obviously, the cost is a strong factor for this decision making, the positive effect an ERP system that is well-suited to your business can have on profits and efficiencies far outweighs the initial outlay.