Business value of ERP
Enterprise Resource planning helps an organization to manage most of the business functions to thrive towards success. Even though the initial cost makes it look like a huge investment, Once the process is implemented it will provide an excellent Return On Investment(ROI).
ERP unifies most of the fragmented business processes converting the whole process into a centralized system. With a centralized system implemented an organization will be benefited in many aspects.
Improved Business Insight
Since all the users data inputs are to the same system and they all are stored in one centralized database, analytics and reporting have never been easier.
This will provide more business intelligence by allowing you to make better decisions more quickly by allowing the users to access reports quickly with the ease of viewing all the statistics with the customizable dashboards available for executives to view when they first login into the system.
The reports may include everything from income and expense statements also custom Key Performance Indicator(KPI)s which will provide insight and this will eliminate the need to wait until the IT staff to generate reports and most importantly as the reports typically come with access levels, data security will also be high.
Lower Management & Operating Costs
ERP users have the ease of accessing the data across multiple systems within few seconds as the central database allows users to retrieve data really fast which will help the staff to utilize their time efficiently.
Also, the unified system will eliminate the cost of training users on several systems by the same service provider or by different service providers and the logistical effort involved.
Also the organization will have to communicate with only one service provider regarding the systems implemented.
As ERP systems provide modules to automate most of the business processes, most departments in an organization will be unified under one centralized system and this will result in a consistent infrastructure.
ERP systems enable your organization to create more secure budgets, schedules and product development plans by the predictions of events when it comes to demand, labor and budget by the use of forecasting tools. And these solutions will improve the overall financial management with less errors and enhance the reliability and accuracy of your accounting process.
All the users will have managed access to the centralized system so that there is no need to merge the information across various systems or sources in order to retrieve the company-wide information needed to be accessed.
During the instances where the team enters the same client information over and over again into several different systems it’s highly likely that you invite human error into the process where you could easily avoid it by implementing an ERP system.
As all the data is compiled, stored and shared and accessed through a single ERP system, accuracy, security and the completeness of data will not be a concern for an organization.
The ERP can automate most of the monotonous tasks performed by the staff which will avoid the possible human errors and redundant tasks such as entering the same line of data into different forms and the system will perform advanced calculations within minutes which will finally result in the increase in ROI when it comes to labor.
Higher User-adoption Rates
ERP systems have a common user experience and design which will reduce the complexity that users experience when adopting for the first time. But with the proper training to use the ERP system, your organization will be able to save money by eliminating the need of users to be trained over several systems. This will also reduce the amount of time and money spent on training sessions with several different vendors.
An organization will be subjected to many rules and regulations which were imposed by different local and international authorities with the broadening of the organization.
Luckily ERP offers the ease of maintaining compliance at every stage.
Further built-in auditing tools will assist the organization with chemical use and tax provisions and meantime will formulate reports and send them over to the relevant government authorities.