Digital transformation has become more of a necessity than a competitive edge. 54% of companies worldwide say that they are prioritizing digital transformation. And, why not? It helps them generate more revenue in the long run. Companies with higher digital maturity reported 45% revenue growth compared to 15% for lower maturity organizations.
This change can be achieved truly through Enterprise Resource Planning (ERP) software. ERP brings all of your business systems together into one central solution, thereby streamlining your workflows and helping you build a resilient business. Besides, in today’s mobile-driven age, ERP allows companies to take advantage of mobile apps and cloud-based solutions to employees and stakeholders. That said, let’s look at some great ways a robust ERP like ePROMIS can help attain true digital transformation.
8 Major Ways ERP Contributes to the Digital Transformation of Your Business
1: Improves Integration and Efficiency
One of the key benefits of digital transformation is having the necessary data at your fingertips. That’s exactly what ERP can help get. ERPs are designed to unify, standardize, and automate business processes. Integrated ERP software like ePROMIS brings all your business processes to a single location - from customer service and accounting to inventory and supply chain management and everything in between. This eliminates data duplication and prevents wastage of administration time required to enter the same details across tools. Employees can use this time to focus on more revenue-generating tasks and standardize common business processes. Ultimately, that leads to reduced operational costs, shorter lead times and sets your business on a path towards growth.
2: Better Reporting and Planning
An ERP system collects and stores data from across your organization, providing a single source of truth. This, in turn, enables you to act more strategically. Besides, cloud-based ERPs like ePROMIS offer real-time data so you can analyze, forecast, and plan for further growth. For instance, you can compare functions and performance across departments without multiple spreadsheets. You can even monitor inventory levels of different manufacturing facilities on a daily basis to prevent disruption due to low stock and control costs more precisely. Cutting-edge technologies such as artificial intelligence (AI), machine learning, and business intelligence makes interpreting data easier, enabling better decision making and improving business efficiency. Business intelligence also helps identify future business opportunities and potential threats so you can better prepare for them. It further highlights changing consumer behavior, allowing you to optimize your services accordingly.
3: Makes Businesses Customer-Centric
Customers are the heart of any business. Therefore, the more customer-centric you are, the higher the chances of success. In fact, digital transformation with a focus on customer experience can lead to a 20-30% increase in customer satisfaction and economic gains of 20-50%.Since the ERP system centralizes and streamlines all the customer information, your sales team can focus more on building and maintaining customer relationships than managing spreadsheets. It also gives you a comprehensive insight into your customers’ needs irrespective of where they’re in the sales funnel. ERPs even help you align all the customer interactions into a single database. Customer support teams can use these insights to provide a personalized experience to them. Stakeholders can also access these details to address customer needs and make necessary management decisions. This enables you to improve your customer service and reach the right customer at the right time with the right message.
4: Built-in Compliance
One of the biggest hurdles to digital transformation is complying with various rules and regulations related to data handling. Besides, the rise in complex billing structures has only increased the complications of accurate and transparent reporting. And as your company grows, the more properties you manage, the more complicated compliance gets. An ERP system introduces consistency across departments and companies. Besides, industry-specific ERPs make it easier to comply with different compliance requirements with built-in features. They even help with keeping track of industry regulations and compliance changes. This enables you to stay in line with relevant laws, guidelines, and specifications of all the countries you operate in. Additionally, ERPs provide you with more control over your data and make retaining historical data easier. This reduces the chances of error, enabling consistent reporting and improving compliance.
5: Better Flexibility and Scalability
One of the things that businesses like about ERPs is modularity. Companies can choose which applications best suit their business needs without purchasing things they don’t need. Besides, cloud-ERP allows stakeholders and managers to access crucial business data from anywhere, making the decision-making process seamless. This flexibility helps organizations attain true digital transformation and stay competitive at all times.Also, ERP software can help you manage various departments irrespective of your business size. As your organization grows, you can even upgrade the system to meet your requirements. You can also consider adding new functionalities to your ERP with the right software vendor. And if your ERP system is based on the cloud, upgrading the software takes very little time, plus you won’t have to invest in infrastructure or hardware. This makes ERP software more scalable and robust.
6: Increases Data Security and Quality
Data is at the heart of ERP systems. It enhances collaboration within the organization by enabling you to share data across functional silos, including sales, marketing, customer service, and business development. At the same time, ERP systems ensure a high level of security via role-based access. This allows you to control who accesses what kind of organizational data. ERPs also offer centralized backups of your sensitive and critical data. Cloud-based ERP systems can offer an extra layer of security (via encryption). Cloud-based ERP vendors employ cybersecurity experts to ensure their servers are protected, thereby safeguarding your data.
7: Streamlines Supply Chain Management
Manufacturing and retail companies that deal with physical inventory can streamline their supply chain processes with a robust ERP system. This leads to shortened lead times, more on-time deliveries, and reduced errors. Besides, it makes your supply chain more responsive by enhancing demand forecasting, inventory management, procurement, and more.
8: Reduces IT and Labor Costs
Since ERP records and stores your data automatically and in one location, your employees no longer need to enter data into different systems. This reduces your operational costs and allows employees to focus on more important tasks to help your business grow. You also get to save IT costs. For instance, you won’t have to invest in maintenance costs, time, direct or indirect labor, new software purchases, updating existing systems, or installing software patches. Your ERP vendor will take care of all these things. All you have to do is subscribe to one of their packages. This helps save thousands of dollars every year.
ERP is the key to attaining true digital transformation and streamlining all your business workflows. By leveraging an ERP system, you can quickly set your business on the path towards growth and achieve your digital transformation goals. Still have questions? Shoot them in the comment section, and we will address your concerns ASAP!