Enterprise Resource Planning (ERP) system has become a catchphrase in the contemporary business scenario. In an era, when companies have to collaborate across the borders and cultures with different functional units and business processes, it has become challenging to operate in isolation.
With the rapid economic development, ad hoc decision making aided with spreadsheets, manual processes, and few segregated applications is no longer viable. In the modern context, organizations are relying on agile and fast methods to achieve competitive advantage by working on their bottom line. They are investing in ERP software to improve the overall performance by integrating crucial aspects of the business like Supply Chain Management, Inventory Management, Production Planning, Human Resource Management, Product Lifecycle Management, Customer Relationship, Procurement, Accounting, Maintenance, Sales, Distribution, Controlling, Shipping and allied functions across the globe.
This post dedicatedly explains the concept of ERP and its benefits that companies can accrue from employing Enterprise Resource Planning Software.
What is ERP software?
An ERP Software is a unified suite of functional modules and applications that integrates the business processes; information flows, movement and utilization of tangible and intangible resources, next-generation data analytics with controlled redundancy thus rendering a favorable impact on organizational decision making and supporting strategic goals.
The Enterprise Resource Planning software has been attributed for creating higher values for the stakeholders by building a shared data center that leads to zero errors and confusions, executing the industry’s best practices across each function and business units, implementing systematized and standard processes within organizations, supporting in legal and financial compliance, streamlining the workflows across multiple sites, sensing the market trends and providing access to accurate, timely and relevant information. The impact of ERP is visible in the organizations in the form of enhanced collaboration, careful organizational planning, and open communication channels across all the business domains located in any part of the world.
An Enterprise Resource Planning tool is empowered with endless opportunities for multiple industrials segments including but not limited to service, manufacturing, retail, education, banking, logistics, farming, staffing, retail, and mining. It aids organizations when they strategize to meet the global challenges with intent to serve the customers while increasing their global market share.
According to Statista, the turnover in the ERP market worldwide is projected to 43.4 billion USD by 2021. The figures are self-sufficient to create a case point for implementing ERP software.
Reasons to Invest in ERP Software
Let’s explore why a business should invest in an Enterprise Resource Planning Software:
Enhanced Productivity: The business efficiency is drastically improved with a standardized system in place instead of multiple segregated applications to control different functions. This brings uniformity across the departments and units, thus eliminating the redundant processes and streamlining the procedures. The growth is automatically boosted when cost centers are controlled through a centralized platform.
High Responsiveness: Enterprise Resource Planning software yields flexibility and adaptability to the business model by executing preemptive practices in the organization. The multifaceted interaction with suppliers, customers, and stakeholders help companies to stay ahead of the curve as they learn the market trends in advance using predictive analytics and get time to implement the changes.
Accurate Decision Making: Enterprise Resource Planning software enables executives to make the right decisions as they get inputs in real-time. The decisions that are driven by advanced logical analysis and are based on more responsive information tend to impact the business fundamentals firmly.
Risk Mitigation: The conventional applications that are fragmented across the business units are prone to human errors, thus increasing the risk of failures. Enterprise Resource Planning software, on the other hand, leverages the centralized database while automatically incorporating the inputs from all departments and units, thus removing any probability of disasters.
Prevention from obsolescence: The faster information response time rendered by Enterprise Resource Planning software prevents companies from becoming the victim of technology obsolescence. They can quickly respond to changed market conditions with a better and original plan.
Superior Financial control: With integrated financial information provided by Enterprise Resource Planning software, companies can strengthen their financial situation with better visibility and control. The cash management is restructured for a streamlined financial reporting adhering to the stipulated standards.
Customer Delight: Enterprise Resource Planning software brings a uniform alignment between resources and functions, thus making the organizational structure lean. They can focus on providing excellent customer service backed up by accurate and timely customer information. The sales are accelerated when customers are satisfied with high-quality service powered by improved one-to-one interactions.
Corporate Governance: Enterprise Resource Planning software is a comprehensive framework with a corpus of benefits. It ensures that business operations comply with regulatory guidelines with higher transparency.
Enterprise Resource Planning software has multidimensional benefits with system enhancement capabilities that bring transformational changes in the modus operandi of any organization.
How do you know that your business needs ERP software?
ERP has become imperative for business productivity. Whatever the business goal is, companies need it to support anticipated growth and long term sustainability. It is always the right time as far as ERP implementation is concerned.
Let’s look at some of the situational characteristics that may help in building a favorable attitude towards ERP software.
1. Your business has crossed the boundary of standardization and offering customized solutions.
2. Your legacy systems need to be revamped as they are on the verge of getting obsolete.
3. National and international compliances require strict monitoring and robust control.
4. Your business has grown global with clients and units scattered across the globe.
5. The traditional applications are no longer useful in creating a vertical and horizontal alignment within the organization.
6. The business processes lack contemporary functionalities to tackle innovative challenges.
7. The technological infrastructure is experiencing downtime with frequent shutdowns.
8. The strategic planning and scheduling process is not aligned with corporate goals.
9. The costs centers are beyond your control, thus hindering the production numbers.
10. The business needs automation to cope with market volatility.
11. The sales unit is operating on guesswork instead of relying on a full-fledged forecasting tool.
When the business expands exponentially, and its management becomes tedious, it may be the right time for an Enterprise Resource Planning software implementation.
How to choose the right ERP software?
There is no standard guideline that delineates as what size and complexity level suits a particular business. Every organization has peculiar needs with specific market reach, precise product mix, a wide range of national and global audience and extension of companies in different markets thus opening the scope for an array of models of ERP solutions.
However, there are some common factors that a company must consider while selecting an Enterprise Resource Planning tool for its growth.
1. Customization: The ERP solution must align with your corporate goals and business model while considering the business resources and capabilities. Customization allows the software to be curated as per the company needs. A custom-made ERP tool is scalable with essential features.
2. Cloud Capabilities: Nowadays, the market is beaming with cloud-based ERP solutions that require no installation and accessible to anyone from anywhere at any time in the cloud. It depends upon the business requirements to select a cloud-based Enterprise Resource Planning or settle with an on-premise platform.
3. Security Framework: One of the most important considerations is security measures deployed by the ERP software vendor. The presence of advanced safety mechanisms powered by data encryption and secured authorization facilitates the purchase decision.
4. Integration: It is critical to ensure that the range of applications embedded in the Enterprise Resource Planning solution work in synchronization with each other, along with other system capabilities.
5. Data Analytics: An Enterprise Resource Planning tool gathers, processes, and analyses massive data to create a pool of meaningful information to aid quick decision making, check the effectiveness of current processes and prepare for future trends. It is vital to make sure that ERP software must be equipped with these capabilities.
6. Cost-effective solutions: Another factor is the cost that affects the purchase decision for the Enterprise Resource Planning solution. It is vital to strike a balance between the cost accrued and benefits derived from it. The companies must rationalize the cost component before choosing particular ERP software.
7. Automation: A manual process increases redundancy at different levels, thus giving rise to confusions and errors. The Enterprise Resource Planning tool must be auto-driven to reduce the input of staff-hours and resulting inaccuracies to optimize the processes across the organization.
Where to find trustworthy ERP software with mentioned above specifications?
Katalyst Technologies is a leading name in the ERP segment. We are trusted SAP partners along with certified resellers for Oracle, Celero, and Netsuite ERP solutions. We partner with you as you take your journey towards transformation. Our specialists possess extensive domain expertise and immense resourcefulness to help clients in migration from their legacy applications to cloud-enabled Enterprise Resource Planning system powered by AWS and Azure. Being your trusted consultants, we are with you right from the design phase to a full-fledged implementation of Enterprise Resource Planning software. We add value to the transactions by providing ongoing support and regular maintenance. We catalyze your success by providing end-to-end management through a comprehensive integrative structure.
Connect with experts and experience a range of accomplished tangible and intangible benefits with state-of-the-art ERP solutions.