More and more businesses are turning to ERP (Enterprise Resource Planning) systems for their workplace. According to Webopedia, ERP is the “Business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources”. Essentially, it integrates all parts of a business’ operations, which can include product planning, development, manufacturing, and sales and marketing, into a single database, application, and user interface.
When implemented, this system can help businesses process and manage information from the various departments within the company. This centralizes system improves collaboration between the different divisions as files are compiled, stored, shared, and accessed through a single, universal company system. Through this, files are ensured to be accurate, updated, and completed, which eliminates the need for people from different divisions to cross-examine with the others to make sure that they are handling the most recent copy of the files that they need.
Aside from this, an ERP system can save company money in both short-term and long-term run. With various systems that have been fragmented before now unified under a single system, the need to train different users per specific system becomes drastically lowered as there is only one system that everyone needs to learn about. This saves money on needing different tutorials per system.
This improved cost-efficiency and productivity can lead to better analytics of the various departments’ output, as well as better generation of reports of the company’s overall progress. It can also drastically improve the results and output that the business is supposed to deliver to its clients, which can result to happier and better-served customers.
What many haven’t realized yet is that ERP can also deliver ROI (Return of Investment) for companies. This aspect is highly important as ROI is one of the most important pieces of data for business owners, as it is the measurement of the profitability and efficiency of a past investment, which can help them decide on future investments that are correlated to past ROI results.
Here are the key takeaways on how ERP can deliver an ROI for your company:
- Alleviation of stress and reduced frustration
- Improved accuracy and accountability
- Improved employee satisfaction
- Collaborative environment
- Improved talent acquisition
Infographic: How to Get Best Return on Investment from Enterprise Resource Planning