Deciding whether your organization needs an ERP software can seem like a daunting decision, especially if the organization has never implemented a major collaboration software before. While considering the pros and cons, it is easy to think that operating without ERP can be feasible, however if you want to experience cohesiveness, enhanced decision making, and overall growth, it is important to implement a solution such as an ERP.
What is ERP?
Enterprise Resource Planning (ERP) is a mission-critical application. It is used by organizations looking to manage their business functions with centralized and integrated system. It allows the integration of various functions throughout the enterprise into one complete system. This not only enables the streamlining of processes and information across the organization but also promotes efficiency and enhances collaboration.
According to a recent report published by Allied Market Research, the global ERP software market was valued at $35.81 billion in 2019, and is projected to reach $78.40 billion by 2026, growing at a CAGR of 10.2% from 2019 to 2026.
So, let us take a look at how ERP benefits organizations.
ERP solution is cost-efficient – ERP is a simple and sustainable solution to increase productivity and streamline processes in a cost-effective way. An ERP system integrates all the crucial functions of an organization and displays them on a single platform. It creates an organized workflow by incorporating disparate business functions on to a central platform. Implementing this software across organization reduces administrative and operational costs as it enhances information sharing thereby facilitating faster decision-making.
It provides Real-time Information and Data – One immediate impact of implementing an ERP solution is the systematic and uniform flow of business data and information across all departments in an organization. Being provided with this real-time information allows organizations to make better business decisions, and further ensures that their data is updated, concise and easily accessible at all times.
Also Read: Decoding the different stages of migrating ERP from on-premise to cloud
It Improves Collaboration – Poor collaboration is generally the outcome of employees working in isolation. When employees are unable to access relevant data and information on a single platform, they tend to waste their time in information gathering and collating. By giving them access to all the data and information on a single platform, an ERP software increases collaboration and communication amongst team members.
It Ensures Seamless Integration – An efficient ERP solution uses an integrated centralized database that supports all core functions of a business. This leads to effortless collaboration amongst various departments and processes within an organization. This seamless integration of disparate departments and processes result in greater sharing of ideas, coherent decision-making, and enhanced customer experience.
It Increases Productivity – By implementing ERP solutions, businesses experience remarkable enhancements in their efficiency and overall productivity as they can eliminate redundant business processes, thereby reducing the time taken to “go-to-market”. Furthermore, an ERP solution provides a multitude of self-service options to businesses through which they can reduce tedious manual tasks. This frees up employee’s time and allows them to focus on core business operations to become more proactive.