According to a report, the global ERP software market grew by 9 percent in 2019. It will continue to remain in a phase of expansion and is expected to exceed $49.5 billion by 2025.
The statistic highlights the surge in the ERP software growth that we’ve all experienced in recent years and will soon see in the coming years. Such stat also points to the blurred traditional enterprise software category and the constantly rising company’s interest in the Enterprise Resource Planning (ERP) market.
ERP is not only a major financial decision but also the most significant investment a company makes. When the technology fits perfectly the company’s environment, it impacts different parts of your business like accounting, manufacturing, human resources, marketing, and more. Deciding whether to invest in an ERP system is not a painful decision once you read about this newfangled approach.
What is Custom ERP Software?
ERP stands for Enterprise Resource Planning and is considered a robust tool that automates business processes and eases the communication between several departments of the company. ERP systems work as an extensive database that companies use to store data, and this system can easily be managed and analyzed. Each department has different access levels with different roles and permissions. Saying precisely, ERP provides maximum visibility to team members and boosts cross-departmental collaboration.
Primary Goal of an ERP System
Ample of processes are conducted inside one company, and handling these processes individually sounds like squeezing water from a stone. The separate and big departments demand the uninterrupted attention of an individual to establish an effective workflow. As managing and handling big different departments is tedious, ERP creates a coherent ecosystem that connects all units and encourages better collaboration between them easily. In simple words, the primary goal of ERP software is to streamline the business processes in one system and improve efficiency in the workflow.
How does this ERP system develop? In order to achieve synergy, the ERP system uses modules, and each module aims at improving the overall performance. If we say clearly, modules fall into three main categories, i.e., Human Resources, Assets, and Sales.
The primary modules are-
- Human resource management
- Purchasing
- Manufacturing
- Customer relationship management
- Sales and marketing
- Supply chain management
- Financial management
- Inventory
These modules collaborate with each other for the smooth working of the company. For instance, the human resource department will maintain the record of employees and management-level chores. SCM, sales, and manufacturing handles the sales, track demand, and deal with logistics. Each department focuses on its role for quality output and further conveys the information to the related module. SCM modules will work with manufacturing for the raw material, coordinate with logistics for transportation and convey the information to the sales module to deliver the final product to customers.
You can even customize these modules for an effective custom ERP system and enjoy access to more opportunities when setting up the system, as per your needs.
Perks of Upgrading to ERP Software System
Here are the benefits of saying yes to an ERP system for your organization. Take a look-
1. Easy Access To Real-Time Data
The most appreciable benefit of the ERP software system is the immediate and simple access to real-time information required for operations. ERP improves the workflow of business data across all departments in an organization. The easy access to real-time data helps business leaders to make the right decisions based on accurate and factual information.
2. Transparent Reporting
If you want to know how the company is performing, the first thing you will ask for is the business data. Implementing ERP solutions within an organization helps you access automated generated reports and analytics anytime. This software stores the bulk of information and data of the company, be it an income, cash flow statement, or data of any other business area.
3. Better Customer Service
Customer service is one of the main aspects of business success. Up-to-mark customer service defines the quality and professionalism of the organization. So, if your business relies on a slow and inefficient system, it can position you last in the race.
Adopting an ERP approach in the highly competitive market is undoubtedly a great mantra to taste success. ERP systems can improve the customer service experience by providing employees access to accurate customer information. Such a step from your side will result in faster response time, on-time delivery, and much more, adding more value to your business.
4. Improved Process Efficiency
The practice of manually entering information into systems eats your time and talent. If your company follows this same strategy, you’re wasting your precious time. Not only this, but you’re also somehow increasing the chances of errors and data inaccuracy that can push you into big financial trouble. When you give a node to the ERP software system, you can effortlessly streamline business operations, automating common tasks. It helps your employees to focus on those tasks that need their attention.
5. Gain A Competitive Advantage
The initial cost of ERP software solutions leads many companies to fall into the dilemma of whether they’re ready for this investment or not. Although ERP solution is an investment, once it is implemented it would help the company gain the competitive advantage business owners always strive for.
ERP solutions can enhance the working of multiple departments, eliminating common errors. This unique solution will help your company to perform better in the competitive market and stay ahead.
6. Enhanced Collaboration
Poor communication and collaboration between employees or team members can cast a negative light on the company. It will impact productivity and also surge misunderstandings. Custom ERP implementations are an effective way to get rid of all these issues. It can enhance collaboration across several departments, providing the accurate information and up-to-date data they need. ERP systems enable employees to monitor daily operations and quickly address the issues if any arise.
Risks of Not Upgrading Software
Have you wondered about the risks of not upgrading to an ERP solution? Well, there are many, but we have highlighted a few below-
- Missing Crucial Updates:
If your company supports legacy technology, there is a high possibility you’re missing critical periodic updates to the software that can raise many security risks. It would be great to switch to an all-new ERP system for quality output.
- Staying on Old Servers:
Older systems have older servers. If your company fails to update a system component, the entire software will be hosted on the old server, which increases the security risks.
- Increased Security Risks:
Older technologies sometimes don’t meet the business owners’ expectations in terms of security. These systems are not actively security checked and have a high chance of having information stolen. Relying on newer technology like the ERP system would raise the security bars.
Conclusion
ERP has made a lasting impact on business owners, ending them up with several benefits that are hard to overlook. Big companies like Amazon, Starbucks, and Toyota use ERP systems to streamline their business process and enhance collaboration across several company departments. And everyone is aware of the level of success they have achieved in this era. So, implementing the ERP system within an organization would be the right route to take this year.
