How Does an ERP Transform a Company?

An enterprise resource planning (ERP) system is a software application that enables an organization to use a single, integrated system to manage essential business processes. By consolidating these processes into a single system, organizations can improve efficiencies, reduce costs, and improve visibility into their operations.

While every organization is different and will have unique requirements for their ERP system, there are some significant benefits that can be realized by implementing an ERP system.

Improved Efficiency and Productivity

One of the primary benefits of an ERP system is that it can help to improve efficiency and productivity across the organization. By consolidating multiple processes into a single system, employees can avoid having to switch between different applications and can work more efficiently. In addition, by automating tasks and processes, organizations can further improve efficiency and reduce the need for manual labor.

Improved Quality and Accuracy

Another benefit of an ERP system is that it can help to improve the quality and accuracy of data. When data is siloed in different systems, it can be difficult to get a complete and accurate picture of the organization. By consolidating data into a single system, organizations can improve data quality and accuracy, which can lead to better decision-making.

Improved Customer Service

ERP systems can also help to improve customer service. By providing employees with a single source of truth for data, ERP systems can help employees resolve customer issues more quickly and efficiently. In addition, by giving employees visibility into the entire order-to-cash process, ERP systems can help organizations identify and resolve potential bottlenecks before they cause customer service issues.

Improved Decision-Making

Finally, ERP systems can help to improve decision-making across the organization. By giving managers and executives visibility into key data and KPIs, ERP systems can help organizations make better decisions about where to allocate resources and how to improve operations. In addition, by providing real-time data, ERP systems can help organizations respond quickly to changes in the market or in their business.

Challenges to implementing an ERP

Implementing an ERP can be a daunting task, especially for small and medium businesses. Here are some of the challenges businesses face when implementing an ERP:

1. Complexity and cost: ERP systems can be complex and costly to implement. They often require specialized skills and knowledge, which can make training and support expensive.

2. Business process changes: ERP systems often require businesses to change the way they operate. This can be disruptive and cause disruptions to normal business operations.

3. IT infrastructure: ERP systems often require a robust IT infrastructure, which can be costly to set up and maintain.

4. Data migration: Migrating data to an ERP system can be challenging. Data must be cleaned and converted to the new system, which can be time-consuming and costly.

5. Change management: Implementing an ERP system can require significant changes to business processes and the way employees work. Change management can be a challenge, especially if employees resist the changes.

Despite these challenges, most businesses find that the benefits of an ERP system outweigh the costs and disruptions. An ERP system can help businesses improve their efficiency and decision-making, and gain a competitive edge.

Benefits of Getting Assistance with ERP Selection and Implementation

While an ERP system can be a great way to automate and streamline many business processes, as you can see from the challenges above, it can be a daunting task. Often, the best means of ensuring success is to work with an ERP selection and implementation team. According to Mckinsey, three-fourths of ERP transformations fail to stay on schedule or within budget. An experienced ERP team can help save time, money and workforce stress while ensuring you get the most out of your new system.

There are many benefits to working with an experienced implementation team. They can help you select the right ERP software for your business, and can provide guidance and support throughout the entire implementation process, especially through those first few months when getting up and running puts a strain on your operations.

An experienced implementation team will also be able to help you avoid common mistakes that can occur during an ERP implementation, can help you develop and implement best practices and help to customize the ERP system to the specific needs of your company. In addition, an implementation team can provide customized training to employees.

The ShapeConnect Business SoftwareConnect team goes a step further than most ERP value-added resellers. We do all of the above and also help with change management and provide a communication plan to help you keep your employees engaged and informed so they feel more comfortable with the transition.

Click here to book a consultation to define how an ERP can improve your business.