A post on TechAdvisory.org points to the advantages of enterprise resource planning (ERP) for small and mid-sized businesses considering the technology for the first time; however, its list of how ERP supports today’s business requirements in terms or productivity and profitability extends to enterprises of all sizes. They cite 10 top requirements for today’s businesses and how ERP helps meet them:
- The need to make decisions fast. ERP delivers reports and dashboards that combine data from every department to managers no matter where they are.
- The need for highly productive employees. ERP automates most of the manual processes that takes workers away from more valuable labor.
- The need for great customer service. It’s never been easier for customers to find a new supplier. ERP connects information across the organization so that you can answer your customer’s questions quickly and accurately, every time.
- The need to support multiple distribution channels. To expand market reach, Internet, channel, and direct distribution need to be supported. ERP connects all systems across supply networks to improve market performance in all market channels.
- The need to accurately match costs with income sources. When you execute work, you need to know whether you are really making a profit on it. ERP tracks all costs related to projects or jobs to ensure profitable engagements.
- The need to support remote employees. Employees need to be productive wherever their work is. ERP systems allow remote workers to access and enter information where they are, when they want to—increasingly on the mobile devices they choose to use.
- The need to manage industry-speciﬁc requirements. Every business is unique; business systems generally aren’t. With ERP, you can build workflows and reports that specifically address the specialized requirements of your industry.
- The need to simplify compliance. Meeting the reporting requirements of increasingly stringent regulations can take a huge manual effort. Instead of spending weeks and months on manual documentation, ERP’s automated functionality speeds and simplifies compliance while allowing your human capital to focus on more productive and value-added tasks.
- The need to support global commerce. Increasingly, business crosses international markets. ERP eases complicated currency translation and supports staffing overseas by providing accurate information without undue latency (essential for efficient operation of dispersed business networks).
- The need to attract young workers. The aging workforce places a premium on attracting young talent. A generation that has only known the digital age has little patience for tasks they know can be simplified with technology; to this group, the technological prowess of ERP not only makes intuitive sense, it reinforces their belief in the company’s commitment to stay current with technology—something they see as highly important.
When ERP matches your business, the best practices that are part of the system can be used to automate the flow of information in the business. The key is finding an ERP that is a good fit—the general flow of the system needs to match your business practices. When this happens, many good things follow, including greater productivity and higher profitability.
Posted by By Christine Hansen, Manager, Product Marketing