Years back, Enterprise Resource Planning (ERP) systems were treated as a monolithic set of applications that had no linkage to other business modules whatsoever. The complex code and business requirements prevented companies to adopt and implement ERP software development on a wider scale. Fast-forward, with cutting-edge technology as the centerpiece of organizations and digital transformation popularizing, ERP-based solutions glue together enterprise applications into one fluid system, bringing not only productivity and connectivity but inclusivity as well.
As rewarding as it sounds, integrating enterprise resource planning across an entire organization is a hard nut to crack, requiring a paradigm shift in major work avenues. Organizations report as little as 20% value capture when compared to the expected benefits they project to achieve with ERP systems. This is why pairing your business acumen with an appropriate set of tools becomes crucial when you need to propel business tasks under one unified interface.
This blog breaks down major challenges faced by organizations while working with Enterprise Resource Planning, the potential capabilities it possesses, and how can businesses create better visibility by fine-tuning their operational models with ERP software.
In the simplest terms, bringing together business modules, processes, and products under one central point of governance can be referred to as ERP transformation. With ERP, automation plays a key role in accelerating digital transformation across various enterprises departments including accounting, HR, finance, and many more. This provides greater efficiency in business operations, streamlining communication with stakeholders, vendors, & customers, and increasing engagement across crucial touchpoints.
In certain industries, like retail, it creates enhanced visibility over order tracking, inventory performance, and accounts that enable businesses to offer an omnichannel experience to customers, leveraging the value chain. It transforms how employees, clients, and suppliers interact over multiple channels using modern technology fine-tuned as per industry standards.
Deploying an ERP framework on your existing system comprises certain challanges. Enterprise-wide processes responsible from production to delivery undergo transformation on all fronts which means it requires time, training, and tenacity. Here are a few challenges along the way while executing ERP transformation for your organization.
1. Extensive timelines require patience
Many businesses fail to address the time required in completing an ERP implementation process. It is a set of granular steps that starts with initiating the process, analyzing systems requirements and core operations, providing a configuration strategy, validating the approach, and deploying the solution. Since the whole process itself is complex, it requires organizations to thoroughly cater to their specific needs.
2. Training your workforce is necessary
Let’s assume you completed deploying ERP software at your company. However, some employees are not happy about the new changes because they were accustomed to previous interfaces, portals, and workflows. Ultimately, productivity goes down, and eventually the sales and everything. What you require here is to conduct proper training of employees to get started with the new ERP solution so that employee performance is up to par.
3. Picking the right ERP provider
There may be hundreds of ERP vendors out there positioning themselves as a top-level service provider. As a business leader, you need to see what features and applications best suit your business requirements and work culture. Looking into the industry verticals, portfolios, and expertise of a specific ERP solution provider is one way to get started.
Digitization has compelled businesses to adopt agility, from operations to delivery, and cross-organizational collaboration. SaaS-based ERP solutions are dominating markets with a wide array of flexible operations that offer great scalability. This provides comprehensive support to drive dynamic business processes, all in one place, from a single cloud under a subscription model. Below are listed the perks of ERP transformation and how it can accelerate your business growth.
1. Effortless data accessibility
Enterprise resource planning is a goldmine of resources for business growth. With seamless access to organizational data and nominal barriers to hardware and software components, teams can leverage performance with added features and visibility. Popular agile systems backed with ERP software propel enterprises’ chances by 70% of being in the top quartile of organizational health – which undoubtedly, is one of the most effective growth indicators.
2. Comprehensive integration options
ERP application development companies are on a roll these days. Why is that? Because, apart from real-time availability and agile capabilities, these solutions are well-equipped with useful tools, technologies, and features that make them a first-hand choice of many businesses, particularly those seeking to scale globally. This great deal of flexibility streamlines complex procedures, while the ability to easily integrate current and new business modules makes ERP solutions systems a front runner amongst other alternatives.
3. Winning with cost-effectiveness
ERP software saves your business the cost of investing in expensive hardware. The ERP delivery model is developed as such to accommodate software updates several times a year, not like an on-premises server that requires a costly deployment every 5 to 10 years. The ERP-powered cloud cuts through both operational (OpEx) and capital (CapEx) expenditures since it eliminates the need to hire additional IT professionals and purchase utility software packages.
4. Foolproof enterprise security
ERP solutions are a comprehensive suite of services with high-end security features. While adding competitive digital potential to your business, they guarantee there are no weak links in the infrastructure. Protection against security incidents offered by ERP software may include eliminating and deterring DDoS attacks, phishing, database breaches, SQL injection, and unauthorized access to sensitive data. ERP security comes with adequate measures including end-to-end encryption and firewalls built on cloud-backed protocols, blocking out internal malicious actors and outsider threats, altogether.
There is a sea of ERP solutions and services in the market these days. With much debate about whether to adopt one or not, companies are focusing more on how rather than when. While there are some obstacles to ERP transformation including time constraints, employee training, and choosing the appropriate vendor, the benefits surpass the challenges. On the competitive business ground, key industry players are leading the market with organizational change through ERP transformation with a diverse range of integration options, seamless data access, effortless operations, and a reliable suite of security services, powering them for digitally-driven change.
Complex business processes make your life harder. Switch to ERP services that bring clarity, agility, and sustainability to your business.