Mismanagement
of corporate data is a large financial drain. Many SMEs rely on static
reporting systems or; worse yet, manual data manipulation, to determine
corporate standing. These devices provide a picture but the image can be
blurred by outdated information
Implementing
an ERP system within an organization changes the working ways of the people.
The following points can be good reason for implementing an ERP system.
ERP Helps Process Automation
ERP
systems allow companies to achieve actual business process automation, managing
important tasks on a daily basis across an organization and freeing up staff to
focus their efforts on more critical initiatives which require personal
attention. This not only boosts the productivity, but also dramatically reduces
operating and overhead costs. Without an ERP system, you can’t have cross
departmental collaboration and prudent workflow execution.
Less Errors, More Efficiency
Another
reason to deploy an ERP system is to achieve operational efficiency.
Error-prone, awkward, manual processes, etc. can drain company’s money and
time. And therefore, companies must automate critical activities and augment
the business process efficiency. No matter how big or small the business is, or
what type of business it is; requiring different teams and departments to
operate as a single unit can be quite challenging.
Better Communication, Higher Productivity
ERP will
improve the internal interaction and interaction between customers and
suppliers. If suppliers can coordinate easily with finance & purchase team
then there is a by less lag time; hence productivity is sure to increase. Thus,
the availability of real-time communication for different groups within an
organization allows rapid responses and managed coordination.
Better Information Management
Many
organizations still have inconsistent information across the business. For
instance, if accounts department and call center access two different databases
that are not integrated, customers with a billing question is not likely to get
a precise answer if they approach the call center for help. Such problems may
look small on the surface but can add up over time, resulting in bigger
customer satisfaction issues and thus affect retention which can adversely
affect revenues and market share.
An ERP
system automatically processes transactions and generates audit and financial
reports. By implementing ERP, it enables the accounting process more accurate,
faster and smoother than before.
Better Performance Measurement
Above
all, an ERP system makes it easier for company staff at all levels, from front
end employees and team supervisors to senior executives and managers – to
measure company’s performance and understand the impacts within the company. ERP
system also empowers organizations to be more receptive to shifts, rapidly
changing tactics to address new customer requirements as they emerge.
