Enterprise Resource Planning (ERP) software is designed to improve and automate your business operations. Within medium to large enterprise companies, these processes - such as quality, production, inventory, reporting, order entry, accounting, purchasing, etc... - are traditionally managed by several disparate, or even manual, systems.
Companies that operate with disparate or manual systems often experience many unnecessary costs and delays. Examples include duplicate data entry, data corruption, more training, greater IT support and software incompatibilities. However, the largest impact of disparate systems is the inability to access information timely to enable good decision making.
As a result, there is a growing trend toward the use of a single ERP system to manage the entire business.
Through this single software system approach, companies can control the details of their businesses by linking all departments together. This maximizes productivity, reduces costs, and increases profitability. With a centralized ERP system, companies can erase information boundaries and deliver the critical information needed for rapid, effective decision-making.
Here are the top ten business benefits of eliminating silos of data and utilizing a single ERP software system. By understanding these benefits, companies can understand how to simplify their operational processes.
- Reduce Costs: Challenged to do more with less, many IT departments are finding that the cost of maintaining multiple business systems is simply too high. With a single software system in place, companies can eliminate many of the costs associated with IT, including high implementation, integration, training, and support costs. Additionally, many companies experience reduction in overall license costs when moving to a single business system approach.
- Single Point of Control: Another major benefit of a single ERP system is the “single point of control.” A single software system will be the trusted source of information for an organization. By integrating all business processes into a single system, companies are able to simplify business workflow and increase productivity and efficiency.
- Eliminate Redundant Data Entry. Eliminating redundant data entry improves productivity. Companies can also gain organization-wide insight across the applications through one easy-to-use and familiar interface. For example, inventory, formulation, production, and lot and batch control updates are processed once with real-time transactional posting.
- Improve Data Integrity: As the sole system for all company data, enterprise wide ERP is perfectly suited for organizations that require high levels of data integrity and control. With a sin-gle software solution, business information will be entered in one central location and will always be the same across company departments and locations.
- Better Business Insight: Access to business critical data - no matter where it's located - is needed for rapid, effective decision making. By integrating all departments into one business system, companies have accurate, up-to-the minute information about product costs, sales trends, profit margins, and more.
- Respond to Changing Business Conditions: Responding quickly to business needs can be the key to gaining and keeping a competitive edge. But disparate IT systems can get in the way. A single enterprise wide software system that is flexible and easy to use can play a critical role in helping your business achieve the agility it requires to respond and adapt to changing business conditions.
- Speed and Simplify Training: When utilizing a single software system, user training and adoption is easier and faster. Since employees only have one system to learn and use, as opposed to several different software interfaces, companies save time and effort during the training process.
- Manage Support: One software system means one software vendor, which prevents multiple vendors from passing software issues off to other software vendors. Also, instead of calling multiple support help desks, there is one support team responsible for addressing all of a company’s software questions or issues.
- Minimal Maintenance: Overall, since software maintenance is lower, support issues are fewer with a single system. Rather than juggling support issues for numerous systems, a company’s IT department can handle the regular updates and backups for one software system. Single systems also keep network issues to a minimum.
- Easier Upgrade Process: In addition to minimal maintenance, enterprise wide systems are easier to up-grade, too. Multiple software systems can conflict when one system is updated and no longer works correctly with another system. These differences are eliminated with single system upgrades.
Overall, the benefits of a single software system fulfill the original intentions of ERP as it allows companies to manage their business as simply and efficiently as possible.