The Importance of ERP solution
Why is an ERP system necessary for businesses, and what are its benefits? Signs that prove a business needs an ERP.
As companies grow and their process and operations expand, their systems should rise in proportion to the company’s growth. In this situation, organizations try to keep their systems up with their growth, but they often fail to maintain this growth and expansion in a line for some reason.
Separated Islands – Legacy Systems
One of the main reasons for this failure is their basics. For a long time, they established an environment consisting of separate islands. In fact, maybe each island does its job properly, but when it comes to expansion, all the islands may not be able to grow equally simultaneously. The problem worsens when it comes to the integration of the separate island. Due to the high volume of data, increase in the number of processes and needs, and the company's expansion, connecting these unintegrated islands will be more complex and more challenging.
Although the company is doing fine with legacy systems, these systems themselves are a barrier to the company's growth, not letting it expand and putting limits on expansion on a global scale.
The solution to this problem is connecting and integrating these separate islands into each other. But as mentioned earlier, each of these islands is a particular application in itself. Combining them can be a new challenge for the company and may lead to chaos because of the complexity of the data volume and the numbers of the processes and operations.
The best solution to prevent such chaos is founding an integrated base from the beginning and before the expansion begins. The basics can expand according to the company’s growth thanks to the integration and connection founded from the start point. But, usually, companies start their business first, and after a period of growth, they think about integrating their processes. Of course, it is a normal process because of the topics such as budgets and resources, but it would be great if the founders had a clear vision of the company’s future and predicted the future challenges before they arise.
The best option for founding an integrated base for a business that can grow by organization expansion is ERP. Today's ERP systems are getting completer and more comprehensive; they are able to bring processes together better.
Why ERP & When?
Why is an ERP system necessary for businesses, and what are its benefits?
Before the change is urgently required and the chaos begins, businesses should think about having an integrated business core base and implementing a seamless flow across the organization. A proper ERP system can help streamline business processes and improve overall business functions, covering the organization’s operations.
Key benefits of using an ERP system are cost savings, resource optimization, reducing manual tasks, reducing paperwork and time-consuming operations, and minimizing human errors.
Unifying stand-alone systems brings a seamless flow of information across the organization. Having this provides companies with cost-efficiency and data accuracy benefits.
As a result of breaking down fundamental barriers and integrating the organization’s functions, the data is stored in a centralized and consistent ERP software, enabling employees from different departments to collaborate across the company.
Data Accuracy, Better Analytics
Since all functions are integrated, system administrators, business owners, and stakeholders can access information quickly, and the required reports can be rapidly generated. Some ERP systems also come with predictive analytics with embedded artificial intelligence and machine learning that provides guides and suggestions to make informed decisions promptly.
The centralized database structure also enables better administration and security provisions, which minimizes the loss of sensitive data.
Because of the integration provided by the ERP solution, data can flow across the organization easily. As a result of this seamless flow of information, time-consuming tasks such as repetitive tasks, human errors, manual work, manual data entry, and paperwork will be eliminated. This elimination ultimately positively impacts the organization’s productivity, efficiency, and profitability.
Also, automating complex processes enable employees to focus more on their core tasks.
As data can be accessed quickly, decision-makers can track key performance indicators throughout the organization from available dashboards, and all required data can be produced in real-time.
Most ERP systems are developed to adapt to company needs and expand according to the company’s growth rate. This flexibility and scalability will prepare organizations to respond to market changes proactively and increase the company's readiness.
Signs that prove a business needs an ERP:
Despite the organization doing fine with basics, these legacy systems aren’t letting the company grow and are limiting the company’s expansion.
Separate Islands and Different Systems
Due to the dispersion of separate islands and various solutions that are not connected, systems cannot work together well. For example, incompatibility between new accounting software and legacy HR system wastes time and resources for stitching solutions together.
Increase in Failure Rate
If the employees can’t easily collaborate or share information, critical business data and information can’t be accessed when they are outside the organization. In that case, this may lead to a loss of opportunity due to customer expectations not being met
If the points described above are relevant for a company, then it’s time for them to think about choosing the right ERP solution.
Companies must automate their operations to keep up with the ever-changing technological trends. The ERP software solution helps companies simplify their various complex processes, increase efficiency, reduce costs, and optimize their organization's productivity.