9 Reasons why ERP systems are important
- Saving money
Though ERP systems are expensive, they are beneficial in the long term and will save organisations money. An ERP interconnects all sectors of the organisation together to become more manageable.
- Improved Collaboration
ERP applications grant organisations the ability to share and edit data and improved security under one system. This creates greater consistency amongst the organisation and can also be seen as a source of internal control to monitor all aspects of the organisation simultaneously.
- Better Analytics
Under an ERP system, it will enable various reports to be generated faster, up to date and more conveniently. Such reports include income and expense statements. As a result of these reports being generated faster, the organisation is better able to make decisions more timely. Additionally, it is also useful for making forecasts, estimates and budgets.
- Improved Productivity by Streamlining Processes
An ERP system will provide greater productivity by ensuring that there are no overlaps of jobs between staff members which will encourage efficiency. It also forces the organisation to reconsider its process and workflow to only include aspects that contribute to productivity.
- Happier Customers
ERP can be used in marketing tasks that can impact customers, such as customer acquisition, customer service and customer retention. By improving communication, customers will be able to benefit from the better service, leading to greater customer retention. The system also allows the organisation to adapt to any rapid changes in the customer market. Also, customers expect organisations to constantly be in touch with technological changes.
- Simplified Regulatory Compliance
The organisation is better equipped to meet compliance due to the improved management and security of data. An improved accuracy of reports exemplifies this.
- Better Performance Measurement
Often it is difficult to manage staff across all levels, from front end employees to the more senior managers. Through the ERP system, it brings the managers closer to the activities of lower end staff and aims to reduce the hierarchical distance between staff.
Organisations are constantly pressured to keep in line with competitors and by obtaining an ERP that matches or exceeds that of their competitors is an investment worth making.
Modern Enterprise Resource Planning software systems are flexible, robust and configurable and can cater to the unique needs or changes of organisations and do not need to be replaced.