Business leaders are learning more about ERP systems, and many may wonder if it’s time to upgrade current systems being utilized — if the business is working in an outdated legacy system, leadership may be thinking of investing in cloud-based ERP software.
There comes a time for every business when the cost associated to maintaining outdated systems becomes a burden; perhaps support from a provider is lacking or unavailable, or the business is spending far too much trying to develop customized patches and workarounds to resolve problems and struggling to create visibility across disparate systems.
Many organizations are working to make out-of-date systems work, a practice that is only keeping teams tied up in the trenches and unable to meet highly anticipated goals around growth targets. There are a lot of reasons for companies to put old, lagging systems to rest, while embracing modern technologies that can take the business into the future.
Trends show cloud-based ERP implementation is on the rise. For CEOs and CFOs who are looking for signs that their organizations are ready to take a step toward the future and engage cutting-edge technology, here are a few tips to signify that a business may be ready:
It’s important that business leaders know what employees throughout the organization record, track, and process with the information and data that’s currently collected. Once a review has been done, teams should determine what processes take too much time, as well as those that have too much discontinuity.
For instance if various organizational departments are running different software for linked processes, there’s likely a problem. Accounting and sales need to be connected in how they fill custom orders, and the warehouse needs to work with others in the organization to track shipping and receiving. Are all these areas unified by the same technology, making for a seamless process and clear visibility? Additionally, are systems automated? If not, human error and excessive amounts of lost time can cause a company endless headaches.
Data is Lacking
Every business operates on numbers. Leaders need to know where a company is strong, and also where it’s lacking. Key Performance Indicators (KPIs) present a vision into the factors that drive and determine an organization’s success. By creating timely reports with accurate tracking, a business can better determine its goals.
For business leaders who don’t have quick access to information that can give insights into the entity, it’s time to bring an ERP system onboard. An cloud-based ERP solution provides decision makers with immediate access to key data, so that staff can get the information they need when and where they need it — this will help to improve employees’ actual task implementation, as well as to drive business processes and growth.
Dashboards provide the C-Suite and individual departments with a holistic view of how the business operates; these can be unique to the user, featuring what they need to make lightening-fast decisions.
Lagging Accounting Practices
The first place to determine whether a company needs an ERP is within the accounting department. Is the financial staff still dealing with paper and taking long bouts of time to reconcile invoices, sales orders, and other data? It’s quite likely this often stretched team is handling all these processes manually, with outdated spreadsheets, or by utilizing multiple accounting and sales systems — many of which are, by today’s standards, outdated.
Once an ERP accounting system is in place these tactics will go by the wayside, and activities will be automatically addressed in real time and eliminate rekeying of data. A streamlined approach to financial reporting will ease the workload of essential resources, who can then make more informed decisions and deliver significantly better information.
Sales and Customer Service Issues
Two huge components of business success closely impact customer satisfaction: first, are customers pleased with their service; secondly, are orders being fulfilled on time? If a company is struggling to meet demands around customer experience, an ERP is needed to turn practices around.
When the following are done separately, businesses suffer: data, sales, and inventory. An ERP system can help to provide real-time insight into a company’s numbers, offering easily digestible analytics that provide short-term answers and long-term perspective.
ERP for the Future
Companies must keep a solid market presence to remain competitive in their industry and sector. Keeping current and ahead of the curve internally — both with systems and processes — is essential for businesses. Leaders should focus on improving workflow by employing or upgrading accounting systems that can further integrate with other business systems such as CRM, as well as working smoothly with other applications that the company uses.
Realizing a business is ready for an ERP system is not a troubling sign; it means the organization is growing and needs the technology to take it to the next level. Our team knows what companies need to achieve their goals through cutting-edge technology. We’re here to help businesses streamline operations like never before — contact us, so we can proactively recommend what your organization needs to boost efficiency and drive profit.
Learn more in How to Select the Best ERP Solution for Your Organization.