Driving success for the new ‘normal’ through the incredible potential of digitization

Digital transformation is the need of the hour in today’s fast-evolving digital age. With the rapidly changing business scenario, it is important to stay fully equipped with relevant technologies to help your business grow amidst the evolving global world.

The growth and progress of every business bring along with it the need to manage administrative workload to ensure a seamless customer experience. In today’s evolving times of business transformation, technology plays a pivotal role in helping organizations stay abreast and updated with newer ways of innovation and growth.

Enterprise Resource Planning is the way forward

Streamlining processes under a single integrated application, the ERP software is enabling digital business transformation through agility and increased operational efficiency. If you are wondering what an ERP system is – It is a unified database and multi-faceted software that can significantly speed up response time for an organization. Thereby providing an improved and holistic customer experience. It also considerably reduces man-hours and the end product is a seamless, strategic system that is dynamic.

Let’s understand the need for implementing ERP

Enterprise Resource Planning is used across organizations for a variety of purposes. The primary reasons are to streamline processes, to ensure there is a centralized and integrated system, and arguably to reduce costs. ERP is widely used by companies that tackle complex supply chains. If an organization deals primarily with production, manufacturing, and distribution – then an ERP system can dramatically ease business and increase the scope of business opportunities. While this is a fine example of digital transformation, it can also be known as process transformation.

Further ERP creates a positive impact in industries such as healthcare, construction, and hospitality. The flexibility of the program allows for all departments to have access to the same information, thus reducing the duplicity of work.

Why should you invest in ERP?

Digitization has made processes easier for everyone. However, it’s always important to question if your business needs an upgrade. Further, it is important to understand what kind of upgrade is required. While digital transformation is the need of the hour, the correct digital technology can truly transform organizations.

Let’s take a look at why organizations should accept digitization and invest in ERP:

Define why you need ERP

ERP is sophisticated software that takes care of multiple needs. But, just like any other addition to business processes, especially related to digitization, the need for ERP has to be carefully analyzed. Business managers can ask important questions such as

a)    Key metrics for measuring the success of ERP

b)    Which departments will benefit the most?

c)    To what extent will the digital transformation benefit the organization’s performance?

d)     What are the challenges that your organization is trying to overcome?

The costs of integrating ERP in organizations are huge and that implies careful consideration before it becomes part of your core system. A solid ERP system unifies IT costs, reduces infrastructure, and streamlines all executive processes under one system. Since ERP puts everything under one system, it reduces training needs for end users.

Customer resource management (CRM), HR management, supply chain management, and accounting are a few processes that an ERP can streamline. There are a few ERP systems that also let you integrate various third-party systems into a holistic system.

Now if we were to take a look at the many benefits of ERP, there would be too many to count. But, as discussed earlier, the benefits would depend on the industry, the organization, the team size, and the answers to the questions we posed earlier.

Let’s take a look at the many benefits of ERP that are common across organizations:

Better accounting

It's crucial to keep track of your finances. In fact, as most successful businessmen would say, it is a critical factor in determining your success. This is especially true for organizations that are in the mid-segment of growth. However, as your company grows, it becomes imperative to bring processes such as ERP to tackle the complexity of transactions. This might be more critical for organizations that are just starting out.

Further, a system such as ERP reduces manual error. With respect to productivity, the system can bring ease in processes instantly. Not only does the application make it easier to track incoming and outgoing transactions but it reduces data work and brings more visibility.

Total Visibility

The kind of visibility that ERP provides is exceptional. It is one of the biggest selling points of this dynamic system. ERP allows complete access to all important business processes and makes data visible across the organization. From your junior-most employee to the senior management, everyone will have access to the same information.

The ERP system provides a holistic view of daily tasks, transactions as well as future consignments. This gives one an overview of the transactions, the inflow, and the outflow. It also puts into perspective where you are spending your resources and how you can cut costs. You are working at a precise level and are taking care of tasks that are a priority rather than spending resources on low-priority tasks. Budget planning, resource allocation are few benefits that make a remarkable difference to business processes.

Another advantage of this cohesive system is that it allows you to take immediate decisions based on the accurate information you have. Giving you an overview of the entire organization's processes, the system is designed to benefit organizations holistically.

Allows for Increased Productivity

One of the first few areas that organizations see a difference in productivity. There is a dramatic improvement in productivity since the team is focused on generating more business rather than processes that have the potential of being automated.

The enhancements also act as performance boosters for the organization as a whole.

Elimination of tedious processes and manual tasks is a much-needed respite for all businesses. Once the processes are set, it brings a seamless workflow and saves time giving employees the opportunity to concentrate on business tasks and goals.

Compliance and security

One of the most vital areas for any organization to improve is the many back-office operations. An ERP software ensures that you are up to date with the regulatory rules of the respective industry. Before choosing ERP software, you have to ensure that the solution provider offers you this significant function. This includes up-gradation of functions to meet new requirements.

Simplification of data is another digital transformation that all ERPs provide. A swift overview will tell you which areas need your immediate attention. In-built firewall systems and security also come under the purview of solid ERP software. This ensures that your administrator is able to control, monitor, and upgrade the software. 

Overview of business operations

As discussed, your ERP partner will offer you tailor-made solutions that your organization needs. Whether it is a transparent financial system, a human resource management system, or a product inventory – the ERP software is designed to ease processes and bring transparency.

It is imperative for any organization that is seeking ERP software to conduct thorough research and undertake a trial.

The ERP software should ease processes rather than complicate set processes. Integration with the current system and enhancement of processes are two important features for any ERP software.

If ERP software can understand your business goals and add to it, it is the ideal combination. Since all organizations have specific needs, this becomes a priority especially since huge costs are involved.

Improved efficiency

All organizations work toward improved efficiency. This could mean a variety of things for your organization and a thorough understanding of the same will help you plan better.

Many researchers have concluded that ERP software greatly improves efficiency. This implies more time for employees to concentrate on growth activities as well as strengthening customer relations.

The system also incorporates best industry practices across teams. Transparency, accountability, and collaboration are three areas where ERP software has shown drastic improvement.

Artificial intelligence, robotic process automation, and machine learning are technologies that support the most sophisticated ERP systems. This is another reason why this system can bring digital transformation across all organizations.

Smooth workflows

Teamwork is the foundation of any successful business. We have often noticed that daily tasks and duplicity of work demotivates and brings down overall productivity. However, the seamless workflow that ERP software offers eliminates these perennial problems.

It is an innovative solution for organizations with big teams performing multiple functions. An intuitive ERP system creates a workflow across teams and saves time that would otherwise be used for everyday tasks.

If all teams have access to data that will help them execute, monitor, and assign tasks – it not only saves time but makes accountability an asset for employees. Interdepartmental transparency is typically undermined but is of utmost importance.

An ERP system collates information from multiple sources and provides a uniform overview of functions that are relevant for you and your team. The filtering process is automated and is designed by the organization's structure, goals, and business vision.

For instance, if all teams have access to basic financial data, they will be able to plan and execute business strategies for overall growth.

Towards the future

We have extensively discussed what is ERP, the digital transformation it has brought across global companies, and its many benefits.

If you are still in two minds about this system, it's best to undertake a trial. This will help you gauge the impact it has on your organization while at the same bringing clarity with respect to various business functions and respective shortcomings.

Another suggestion to keep in mind is finding an ERP partner that understands your needs and resonates with the vision that your organization is working towards.