Comfort zones are a pleasant place until you realize you’ve outgrown what is currently in front of you. We’ve all felt this personally, and it’s important to be in tune with your business to figure out when your company is feeling it too. You may be at the tipping point – silos from team to team, clunky ordering and accounting processes, shipping, and inventory challenges. It may be time to streamline processes and procedures, but you’re wondering if taking on such a big project and changing the way your company operates is worth the undertaking.
We’re here to help you understand the opportunities and benefits that come with successful ERP software implementation.
Here are the top 10 benefits of going through a digital transformation within your business.
1. Improved Efficiency
One of the biggest benefits of implementing an ERP system into your business operations is the dramatic improvement in efficiency. The way your employees communicate from department to department, the continuous flow of data across the organization, the seamless transition from phase to phase over the lifetime of the customer – all of these benefits add up to a more efficient business process that can save time, money, and resources.
2. Increased Transparency
The integration of an ERP or SAP system will also shine a brighter light on current processes, helping to identify trends and patterns you may not have otherwise seen. The ability to dive deeper into day to day data in real-time enables a steadier pulse on all aspects of the business that keep the wheels turning.
Another aspect to consider is transparency across teams. For example, both the Customer Success Team and the Accounting team would be able to see which clients are behind on a payment and could address the problem more quickly rather than simply waiting on Accounting to loop everyone in.
3. Cost Savings
A lot of organizations spend a good amount of money and time simply maintaining old, legacy systems and products. Undergoing a digital transformation could not only save money upfront, but it will save both time and money once you go live through the integration of more efficient processes and quicker problem identification.
With the right ERP software, there are a lot of opportunities in cost savings in general operations as well. For example, a product based company can get better insights into the volume needs and timelines of raw materials. By ordering raw materials in a strategic, data-based manner, cost savings become inevitable.
4. Revenue Growth
By minimizing costs, it’s easier to grow revenue. Maximizing opportunities through the recognition of flaws within current business processes is key to driving a company forward. By improving transparency in different aspects of the business, employees and management can improve their best practices and drive revenue through pattern recognition, trend evaluation, and capitalization of data-driven opportunity.
5. Better Customer Experience
Imagine this scenario – A customer calls in to check the status of a delivery that was to arrive yesterday. The Customer Service Agent can dig deeper into the order to see what the mix up was, and provide more insight into why the product is delayed in delivery by simply by looking at the system. Instead of potential order cancellation, the customer better understands the process and the sale is saved. Wouldn’t it be nice if all customers were this understanding? Nonetheless, the additional insight into the order adds a value that the customer will appreciate, whether they know it or not.
Better customer service on the backend, as mentioned above, is one piece of the puzzle. The other component is the frontend point of sale visibility. The right ERP system can integrate into your customer-facing ordering platform. Customers could have visibility into inventory remaining, available services and products, and an overall cleaner and more simple purchasing process. After all, simplicity is key.
6. Better Employee Engagement and Culture
A Human Capital Management software can be utilized to attract and retain talent. A system like this could address performance reviews, ensure that employees are getting the proper coaching, training, and support from their leadership, and dial in on areas of improvement on a per-employee basis.
In addition to human resource opportunities, ERP software can also improve the overall work experience. If the systems in place make an employee’s job more straight forward, efficient, and intuitive, their job becomes less stressful. In a sense, you are setting your existing and future employees up for success by handing them an efficient, transparent, and seamless technology. This will help them stay organize and identify trends in their own work, making their output more valuable and their time at your company even more enjoyable.
When an IT transformation is done effectively, you will be able to respond to the market and customer needs on a whim. 2020 has been the biggest upset in regular business practices since we can remember, and it’s times like these that illustrate the importance of flexibility and adaptability in business. To ensure that you’re making your business more flexible through a transformation, it’s important to select the right software for your company and integrate your software appropriately so operations are not disrupted through the transition.
8. Better Supply Chain Management
Effective supply chain management leads to visibility in your supply chain, improved vendor management, and a better understanding of the microeconomics your products – from raw materials to delivery to your customer. If shipping and logistics are a part of your business, make sure to consider how this department will factor into your needs through your ERP transformation process.
9. Better Operating Model
What’s your business model? Will improvement in your IT infrastructure improve the way you do business? A lot of companies we have worked with have seen new lines of business open up through the integration of digital strategy. Take brick and mortar businesses, for example. Adding a reliable ERP system that tracks inventory and sales opens the door to better and more reliable eCommerce channels, aiding in the growth and optimization of your company’s reach.
10. Improving Competitive Advantage
By improving the infrastructure of your business, you are improving the advantage you have within your industry. The best way to do this is to plan ahead in the features and functionalities your new system will need to make your company stronger. Dial-in on what it is you’re good at and where it is you can improve your business. The features and functionalities of the software you select should mirror the needs and improve upon your differentiating factors as a business.
Many say stepping out of your comfort zone is one of the only ways to experience true growth. The same is true in your business. If you choose to do so, make sure to surround yourself with the right professionals and software programs to help you drive a successful transformation to the finish line.