Deciding to invest on which technology is to use for your business is very difficult, you should be the one responsible for innovation and growth within your company, but also don’t want to be failed in the project. So, is an investment on ERP software worth the risk? To solve out, you need to know the benefits of ERP, and specifically how ERP system advantages and disadvantages breakdown when compared against each other and major thing is that who will provide the best ERP software?
Whether your business is large or small, there are lots of benefits of ERP software your business could gain. Enterprise resource planning software is a platform of customizable applications that allow businesses to integrate and manage their most important processes.
Advantages of ERP Software
Scaling up your business? Do it right with ERP.
An ERP application helps to come out of the business issues, a business will grow high but this is no denying a fact that the success of any business comes with several associated issues. If your business not having an effective ERP system, it is not possible to handle different processes and their growing demands will, in the least, become confused. There will be many different things to solve in an organization to solve those issues easily an ERP system is a must. If sales team will miss out on essential customer information that has been updated recently, this means missed targets, so if you don’t want to miss your customers then implement an ERP system to your business.
Ensure transparency throughout your organization with ERP
Every business has two extremely essential assets, they are information and data. Security of the data and integrity is highly important to ensure that strategic business information is processed and accessed by the right people. With the help of an ERP application system, while the data is maintained safely, access of data can also be given only to people who have the authority and also, strategic information will be maintained at one place while updates to such information can be done by one or more authorized people.
Easy access to information through business automation
As a business grows it is highly impossible to manually calculate sales margin, profit ratios, information of clients and other such metrics, and measurements and performance metrics help in evaluating business progress and also help in setting future goals of your business. An ERP solution brings a degree of automation to the business by allowing employees across the organization to access shared data without the need to maintain manual records. This also enables generation of synchronized reports on key metrics of your business. Immediate access to information is remarkable to take timely decisions. Today’s ERP software systems are flexible, robust, and configurable and they are not a one-size-fits-all proposition but can be sewed to the unique needs of your business. ERP systems also can adapt to the each and every changes in needs of a growing business and it is never ending, ensuring you won’t have to purchase an advanced solution once your needs change or your business grows.
Having too many processes to handle? Consider integrating them all.
As the business grows, its processes will also expand. Each and everything of these processes is usually hosted on various platforms and run with various applications or software programs. This will bring a degree of complexity when it comes to the handling of similar information by your employees from various departments. In such a case, your account team handles certain software for recording income and expenses whereas the sales team uses completely different software to record sales, which actually form an integral part of your income leading to the redundancy of data and other issues. An ERP application system integrates different processes that are necessary to run a business enterprise into one single database. These processes will include inventory and order management, human resources, accounting, customer relationship management (CRM), among others. By slicking all the processes into one effective system, an ERP provides your business with a shared database that supports multiple functions across your business enterprise.
Simplifies the business accounting and financial reporting
A business usually struggles with its accounting procedures if they are still either manual or if the sales, finance, accounting, and HR departments do not have access to shared data. As the business grows, these problems will also grow. Financial reporting and everyday accounting will particularly require a huge amount of time and effort which can be easily reduced or eliminated with the use of an ERP software solution. Using ERP software solution to integrate and analyze financial information will improve employee productivity and reduce delays considerably.
Customer satisfaction is the priority with ERP.
ERP gives more important to keep your customers satisfied while managing your business sales and inventory efficiently can be a herculean task if you have your customer and inventory data housed on different platforms.ERP software system can help you to report product-related data to your clients and maintain up-to-date information and will also facilitate real-time updating of all data. This can help client’s representatives’ access accurate, updated data and deal with your customers efficiently.
Disadvantages of ERP Software
If you decide to invest in a traditional ERP, you could easily end up spending five figures for a single license this is the biggest disadvantages of ERP. The upfront cost of the software alone can be restrictively high, especially for small-to-medium-sized businesses. These businesses can avoid the upfront costs with a cloud solution, which typically can be paid for on a monthly basis.
Implementation and Maintenance Cost
Investing in software is high; the implementation process can cost nearly four times as much. You will need to hire additional IT staff, software training specialists, ERP consultants, etc. Vendors offering traditional ERP systems typically charge a fee for maintenance on top of the license fee.
Customization is one of the major aspects of ERP, but it can easily and quickly get out of hand. Customizing your ERP software will take more time, effort, expertise and money. But too often, businesses completely underestimate how many resources are needed and either doesn’t finish their customization or end up going way over the budget.
ERP software solutions provide lots of capabilities, but that also means the software will be complex and difficult to use. It’s not unheard of for a business to get clean up in all the potential of an ERP but fail to plan properly for its implementation.
When taking a decision about which platform is right for your business, it’s important to consider the pros and cons of ERP software system, but an effective ERP solution offers strategic management to the business while providing operational support to the management for integrating different departments and handling with the different fluctuations and changes that take place within the them. Your businesses IT management becomes very simple with ERP.