Many companies have still not quite let go of antiquated systems and have not fully undergone a digital transformation. If anything can be taken from the pandemic as far as business is concerned, it is the need to have digital systems in place.
Many businesses that had vertical marketing systems in place, found themselves in a stronger position during the pandemic than others who had less control over their supply chain.
Similarly, companies that use ERP found themselves able to make more informed business decisions and to run a more streamlined operation during those trying times.
If you have decided that it is high time to have a digital platform for your business, and move forward, then you may want to consider an ERP.
What systems were in place before ERP?
In the past, when businesses started looking at how to digitize their processes, new systems were brought in with little regard to how they would link up to each other.
For example, a business twenty years ago may have installed software to help the finance department work more efficiently. However, that particular system was a stand-alone platform that has no way to communicate with the purchasing or sales department.
An ERP system though is designed to provide integrated systems that cover all the areas of any business.
Integration is vital for any system to work
Over the years it became clear to many businesses that they needed all their departments to be able to communicate with one central area, or database. This meant stripping out the old non-integrated platforms and implementing something new.
Although ERP has been around for some time, the next-level systems are being hailed as the step to take post-pandemic. If businesses want to thrive they will need to look at all their processes and how to improve them. An ERP can help with this.
One such ERP solution is Netsuite, which is said to be the king of Enterprise Resource Planning (ERP) solutions! However, you may want to look at professional assistance for the setting up stage, as the netsuite implementation process can be somewhat daunting.
What do ERP systems do for businesses?
The importance of the internet and internal networks for businesses is fairly clear. Few businesses can operate without having some online presence. You, yourself may be looking for ways to utilize digital marketing in your business and become more visible.
However, many systems for business are less visible than social media or websites. An ERP system will never be seen by your consumers, but it can bring them many benefits as they can help your firm to operate more efficiently. If you’re not sure how an ERP system can help to improve your business or how to introduce it, then consider contacting someone like Syte Consulting Group for some professional assistance.
An ERP can affect the following areas of your business:
- Integration of all systems
- Automation of many tasks
- Inventory and warehouse management
- Productivity and efficiency
- Distribution
- Manufacture
- Resource management
- Project management
- Data sharing
- Finance
- Sales
How successful are ERP systems?
Some of the biggest companies in the world use ERP systems to manage their international operations. Amazon itself uses an ERP system, along with Walmart and TD Bank Group.
When Western Digital merged with SanDisk and HGST, they faced a major problem. How to get the three businesses to work as one? A case study of Western Digital’s system implementation shows that they have used ERP to integrate all areas across the three businesses.
ERP systems are modified for each business to fit their exact needs. This allows genuine integration with one single solution instead of different software running separately.
How do ERP systems make a company more efficient?
Implementing an ERP can mean a huge amount of work. Initially, this can mean a downturn in productivity and teething problems.
Once your workers are happy with the new system though, changes can start to be made to how your company operates. One of the simplest things that an ERP system can do can make a huge difference to your efficiency.
ERP systems are useful at helping to automate different areas that normally take up time. Because they have direct links to finance data they can automate many accounting and invoicing processes.
The real-time data reporting will also do away with the need for so many hand-made spreadsheets. Data-driven environments are becoming more important these days, and ERP systems make the implementation of this easier.
Do they ever go wrong?
Of course, not every system is perfect. When National Grid tried to implement its new ERP in 2012, it went disastrously wrong. Perhaps choosing November 5th was asking for fireworks, but what happened was a display of bad luck and how not to implement an ERP.
One week before National Grid was due to go live, Hurricane Sandy hit their service area. Rather than wait, the business decided to continue with its launch with disastrous consequences.
While these systems are no doubt powerful ways to help improve a business’s operation, they need some help to make sure the right choices are made. An ERP consultant is highly important for anyone looking to implement one of these systems. Their expertise means you are more likely to make the right decision of when to go live, unlike National Grid.
Summary
ERP systems can help small or large businesses integrate all their operations and share information in real-time. When they are installed and carried out correctly they will bring many benefits.
However, the importance of ERP consultancy should not be ignored as part of any implementation plan.
