How To Use ERP Software for Getting Most Out Of Your Investment?

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SoftwareSuggest

Senior editor

Parul Saxena

Chief editor

Last updated: May 7, 2021

An ERP software manages your core business processes with technology acting as the mediator. It has become a vital aspect of most present-day businesses. It has become the lifeblood of organizations because it provides insight and visibility into the myriad business functions, empowering employees and managers to make informed decisions.

Today, most organizations cannot do without a software that performs this function for them. An ERP system handles nearly every operation of an enterprise, integrating all the core processes that an enterprise needs to function smoothly. The individual software modules of an ERP system each take care of a specific area of business such as Human Resource, Finance or Logistics. Present day ERP systems help businesses to automate a majority of their tasks and provide streamlined reports.

Looking for ERP Software? Check out SoftwareSuggest’s list of the best ERP Software solutions.

Quite a few businesses, especially those in the small/medium sized categories, are hesitant to make an investment in a decent ERP software in fear that its cost would outweigh its benefits. This is a common misconception that can be chalked up to the significant upfront costs that companies have to bear initially.

However, if the ERP system is implemented in the right manner, you will find that there is no substance to such misconceptions. We are here to tell you that you can get an excellent Return on Investment on your ERP software by taking the right measures for company-wide implementation.

How does ERP software help to get good RoI?

Here are some reasons why getting a good RoI on your ERP software is not a difficult job at all:

1. Move to the Cloud

And ERP by itself is an incredible boon to organizations. A cloud-based ERP software might just be a divine answer to all of your prayers. Cloud-based ERP software is not just easily available, it also requires much less upfront investment than the on-premise version of the same software. This is especially good news for small and medium businesses as the up-front cost is one of their main concerns.

Opting for an ERP system that’s cloud-based will give the company a high degree of flexibility and customizability. With the increasing adoption of other technologies such as IoT (Internet of Things), cloud-based software including ERP systems, will more or less take over. It is advisable that you make the move now and become an early adopter, rather than incurring additional costs for the transition in the future.

2. Increase your Productivity

This goes without saying but still needs to be said. A good ERP software will increase the productivity of your organization immensely. As has been mentioned before, relying on an ERP means different departments in your organization will be able to collaborate more effectively, and hence take decisions based on facts, not gut feeling. Automated routine tasks will allow employees to save valuable time, which can be used for more important ones.

More importantly, different departments or teams have a clear idea of what’s going on in other departments/teams. When interdepartmental activities are not shrouded in secrecy, each department can schedule and coordinate its projects and activities optimally. Additionally, the benefits of built-in standard practices in most ERP software available today will accrue to your organization without much effort.

Related Article: Tips & Tricks for Selecting the Right ERP System for Your Business

3. Reduce your Operating Costs

In addition to boosting the productivity of your organization, implementing an ERP will also give you ample opportunity to reduce your day-to-day operating costs. In fact, this is a byproduct of improved productivity and efficiency brought about by the ERP.

Many of your employees’ tedious, routine tasks are now automated. There is no more need for time-consuming data entry or frantically searching for obscure pieces of data from disparate databases. Your ERP makes everything available at one place. Therefore, your employees have more time to contribute towards profit-making activities rather than on menial tasks, enabling them to optimize the operating costs.

4. Get Real-Time Updates on Financial Data

Financial information is one of the key factors in determining how well your ERP system is serving your organization. The ERP software will consolidate relevant financial data in one place, allowing managers from various departments to see how their finances are affecting their KPIs (Key Performance Indicators).

The access to important financial data in real-time will assist managers in making quick, productive decisions based on accurate data. They can analyze the financial data immediately, without having to wait for someone from the finance department to make a report about it. Decision making becomes autonomous and unbiased, which is something that most departments would want to achieve.

Bottom Line

In a nutshell, by integrating various business processes and connecting different business units through a common interface, ERP systems enable businesses to function more efficiently. It facilitates intra-department as well as inter-department collaboration and allows managers to view a single problem from the viewpoint of their counterparts in other departments. Better collaboration automatically results in better, speedier, fact-based decision making.

The initial investment in most ERP software may be a little on the pricey side, but as most users would agree, it’s worth the investment. We have provided a concise and direct view into why an investment in ERP will be a fruitful one for your company.

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