As the magnitude and speed of technology-led disruption move at unprecedented speeds, and the barriers between human and machines are eliminated, managing data using disparate systems isn’t good enough any longer for organization to remain competitive and customer-relevant as there can be a delay communication for managers knowing what’s going on until information is manually inputted. Integration of not only data but a system is needed to provide a seamless user experience and here comes the Enterprise Resource Planning (ERP) system which unmistakably one of the most useful platforms which cover not only accounting tasks but general business management tasks as well.
The demands of customers are unpredictable in today’s world and it becomes more challenging especially for small businesses as one of the biggest bugbears of small business owners is lack of manpower. Many business owners have been asking us: How do I know if my business really needs an ERP – and, more importantly, How can it save me money? Will it be worth the time spent?
We understand that for small business, ERP system isn’t a light investment choice to make. Even an off-to shelf solution will take time on data reallocation and staff training. The initial cost will often make business owners think twice about investing. Whether it will be worth the cost is another matter entirely. However, the long-term financial and efficiency benefits will definitely far outweigh the installation costs so to unravel your confusion, here is the article to talk about how exactly an ERP can save you money and time.
1. How can it save time?
Each department carries out day-to-day tasks differently, and every new employee inherits legacy systems and documents that they will often change themselves over time.
ERP System affords its users standardization of your business procedures and documents. It grows business visibility into business operations across various departments. No more time is wasted looking for the right contract or supplier details, and everything is focused on the core work with the aim to get the job done as fast as possible. It helps to alleviate the need to have an endless cycle of manual and spreadsheet-based processes by up to 77% by standardizing back-office processes including financials, human resources, inventory, and sales. This means no more late nights pouring over antiquated heaps of spreadsheet and repetitive tasks trying to establish reports for the important meeting at the end of the week because the system will do it for your and also minimize the potential of human errors.
Having an increased visibility of data can be extremely useful for all the departments to support the faster and smarter decision-making process. It allows one to see the dynamics of their business, anticipate market shifts and control business mechanisms before making a decision. Standardization helps to ensure that, “as the state-of-the-art moves, you move with it.” It makes it easier for business leaders to manage the entire business in a single database by providing a holistic view of how business performance is in a timely manner.
Cloud computing means your delivery drivers can operate from their mobile devices to provide real-time updates. Your satellite warehouses can see at an immediate glance whether is there any stock item under the roof. A new staff member can learn the application even while on-the-go in the field, without time wasted in an office.
The learning curve for cloud-based computing is relatively simple compared to on-prem. Your staff able to pick it up fast and access the system from anywhere at any time. There’s no need to wait for human updates for order progress: It’s all right there online for your staff to see. When a team is well-equipped with the right technology, more high-quality work will happen to lead to greater growth and yielding the most returns.
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2.How can it save money?
Many still believe that the cost of upgrading an entire system to the cloud is more expensive than sticking to the on-premise ERP. However, it’s not true. Once you get past the sticker shock, you will be amazed at how ERP can save you money and time.
Firstly, it streamlines many business processes might as well it reduces the complexity of the overall workflows. With ERP, users can churn out the information in limited time across multiple systems. Under the centralised system, information is much easier to retrieve. Moreover, ERP system can save you money by eliminating the need for users to be trained on several systems. This not only reduces the amount of money spent on training but also reduces the logistical effort involved. Instead of scheduling several training sessions with several different vendors, you only need to communicate with one.
Besides, business that adopts cloud-based ERP tends to reduce its IT cost as there are no hardware, software, and licensing fee to maintain. And the updates will be taken care of by the ERP vendors. More specifically, the infrastructure that you used is managed and purchased by the vendors, it means that you are sharing resources without making any purchases for that. Moreover, most of the providers offer a pay-as-you-go model with great scalability. You just need to pay based on your usage.
The adoption of cloud-based ERP system can actually help you to save up to 93% of IT costs and it makes this subscription-based model much more practical especially for small business as it doesn’t require a huge capital expenditure meanwhile leveraging instant access to a resource without high-cost investment. The flexibility of the cloud to scale is one of the biggest benefits for most businesses.
The ability to adapt quickly to the changing demands of your business is the key to survive in this highly competitive world. That’s why we believe in lifetime application management of your ERP implementation, to ensure that it truly reflects your business needs both now and in the future.
Run your small business faster with GERP! From a single interface, it allows all the systems can be assessed through one application, streamlines all of the complicated business processes and provides a 360-degree view of how the business performance is.
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