Does your business operate an Enterprise Resource Planning (ERP) system? If the answer is no, then it is time to rethink. ERPs have significant benefits, especially in the current business climate.

Here, we take a look at how implementing an ERP system will affect your business. We’ll look at the positives as well as how to overcome any hurdles you may come across. What can an ERP system do?

Before we dive in, let’s just remind ourselves what an ERP system can do. ERP systems, at their most basic level, are software programs designed to manage core business processes in one place. They typically work on a modular level, bringing together information from different “modules” (i.e., input from different departments).

An ERP system might collate information from areas such as purchasing, distribution, warehouse management, customer relationships management, order processing, HR, web sales and more. This is drawn into a central database so that key personnel can easily view the information they need to manage the business.
Most ERPs these days are web-based.
The benefits

An ERP system is designed to optimize your business and push it towards its goals in the most
time and cost-efficient way possible. Here’s how.

1. Streamline process management

Improved efficiency and streamlined processes are key benefits of ERP systems. These systems
can reduce the monotony of repetitive manual tasks, leaving personnel with more time for
productive tasks. An ERP system can also perform much more complex tasks and reduce the
rate of human error as well as save time.
Here are a couple of examples of how ERP systems can improve workflow in different
departments.
In the warehouse, you can fully automate stock management processes. Manual information
input and management is time-consuming and thus costly, and is at risk of human error. With a
modern ERP system, your stock management can overcome these problems. Importantly, it can
also benefit from technology such as real-time dashboards, AI (Artificial Intelligence) and IoT
(Internet of Things) that power better decision-making for optimal stock efficiency.
In finance, ERP systems provide live dashboards and insights powered by AI. ERP systems can
help ensure regulatory compliance through excellent tracking capabilities.

2. Predict trends in the market

Being one step ahead of trends in the market can spell the difference between making or
breaking it. ERP systems use data analytics to identify trends from transactional data as soon as
they begin to emerge. Installing the right forecasting features in an ERP system is proven to
improve your competitive advantage.
The power of predictive analytics comes from AI and statistical modeling. It can predict
purchase patterns and customer behavior. Using predictive analytics can really boost company
growth.

3. Integrate information

Remember that the more widely you use the ERP system across the business, the more
information you can draw together centrally. This gives you complete transparency and control
across departments.

Access can be managed by authentication policies so that the right information can be accessed
by the right people at the right time. The centralized environment of an ERP system can greatly
reduce bottlenecks and enable strategists and management personnel to have key
information at their fingertips.
Businesses with a streamlined ERP system in place were in an advantageous position when the
COVID-19 pandemic hit. Because modern ERP systems are either web-based or cloud-based,
effective remote working was made possible with fewer bumps in the road.

4. Benefit from mobility and flexibility

It is already clear that the pandemic has changed the way we work. While remote working is
still considered to be problematic in some ways, the workforce has made it clear that flexible
remote working needs to be an option. Remote workers report better work-life balance, fewer
distractions and better productivity.
While the debate over remote and in-office working is still fierce, it is clear that remote working
will feature more in our future than our past. Countless major companies have announced
permanent, flexible home working, including Apple, Facebook and Reddit. Their offices are to
become drop-in-style spaces.
What is enabling these businesses to operate so flexibly? Their comprehensive ERP systems are
configured to cater to workers wherever they happen to be located.

5. Improve decision-making

A good ERP system can automate the generation of reports, both simple and custom, and
provide advanced data visualization tools. You should be able to generate the information you
need to make timely, effective decisions and become a more flexible, agile business.
ERP system reporting also means that presenting data to a variety of formats for stakeholders is
no longer either problematic or time-consuming.

Three reasons your business needs an ERP now more than ever

Now that we've looked at the features of ERP systems, we can easily see that these systems are
crucial to modern business. Here’s a summary of their key benefits:

• ● They offer flexible, remote working for the post-pandemic world.
  ● Their data analytic capabilities are crucial to maintaining a competitive edge.
  ● They streamline a business, saving both time and money across all departments.

The sticking points

The advantages of ERP systems are clear. Those in the know will have been aware of their
benefits for some time. However, there is still a sizable proportion of businesses that are not
using them.
Why? A key concern is cost. Figuring out how to get the best ERP system for your business on
your budget can be daunting. The time costs of implementing it are also seen as difficult. Who
will be responsible for introducing the software into the business? Are there personnel who can
do this efficiently and effectively, and have the time to do so? The answer is likely to be no.
What is the solution? External consultants from an independent ERP advisory have the
technical and domain expertise to find and manage implementation of an ERP solution that is
exactly the right fit for your business and budget. You can expect them to find ERP software
that will improve processes and workflow within the business and provide a significant return
on investment.
An independent ERP advisory service can get your system up and running in a seamless process.
They can take care of:

• ● Identifying your business requirements
  ● Evaluating multiple ERP solutions and solution providers
  ● Organizing Proof of Concept demos
  ● Selecting the most appropriate solution
  ● Vetting and negotiating contracts
  ● Planning and managing implementation
  ● Obtaining support services

If you would like to implement an ERP system but lack the knowledge, time or confidence to do
so, external consultants offer the solution.

AUTHOR BIO
Ratheesh C. Ravindranathan is the Managing Partner at Affility, a comprehensive advisory
services firm assisting clients in the UAE and worldwide with IT, risk and management
consulting solutions. Being a specialist FinTech professional with over 20 years of experience,
an MBA in Information Systems Management, Oracle Certified Professional (OCP) and a
Certified Information Systems Auditor (CISA), Ratheesh is an expert at guiding through your
business's digital transformation journey, Independent ERP Advisory, and Transaction Advisory
for various M&As in this region.