Enterprise Resource Planning (ERP) systems are becoming more common across practically every business sector. These systems are used to connect business processes and can deliver several benefits that scale with your business.
In fact, the total market size for ERP systems is expected to exceed $49.5 billion by next year. This just shows how much businesses value the unified approach offered by ERP systems.
But an ERP system isn’t right for everyone. In this article, we explore some key signs that your business could benefit from an ERP system.
You Can't Stop Making Spreadsheets
If you are in a business where you find yourself making spreadsheets to support other spreadsheets…which, in turn, support other spreadsheets - then it is probably about time that you invested in an ERP system.
Multiple spreadsheets take considerable time to maintain and are subject to human error, which can lead to data inaccuracies. They can also be difficult to work with, especially when used extensively over time to deal with a considerable amount of data.
An ERP system will allow you to adopt specialist tools which have been created to record, manage and export data on practically any business process.
Data Inaccuracies Causing Issues
Modern businesses are built on data. As industries become more competitive, businesses will depend even more on data in order to increase efficiency and drive competitiveness. But this can only happen when data is accurate.
After all, making business decisions based on inaccurate or out-of-date data is just as bad as making decisions based on no data at all (sometimes worse).
ERP systems act as one centralised point of data for a business. This means that all stakeholders within the business are pulling data from the same point. Updates to data can be automated to be made in real-time. Finally, in many cases, ERP systems can leverage data validation tools.
When combined, all these factors ensure that data is consistent, timely and accurate.
Your Team Works Across Multiple Sites
Now more than ever, businesses find themselves attempting to provide remote workers with the tools and data they need to properly service their responsibilities. If your business has remote teams or multiple teams that work across various locations, then an ERP system can help remedy these issues.
ERP systems are typically hosted on the cloud. This means that your team members can access the same tools and data they would have in the office from anywhere with an internet connection.
This reduces friction and enables your teams to do the best job possible. It is also a good way to protect your business against factors that may stop business continuity such as future pandemics or natural disasters.
Reporting Takes Considerable Time
Reporting is an essential part of ensuring that business decisions are based on real business data. However, reporting can also be highly time-consuming, which not only costs businesses their resources but can also lead to data being outdated by the time it is ready to use.
As an ERP system stores all data in one central location, smart analytics and reporting tools can be used to automate report creation, drastically speeding up the process and ensuring that reports are based on the most relevant data possible.
You Need Greater Functionality
There are many factors that will lead to you needing greater functionality within your business such as business growth, a change in market conditions or a change in business focus.
Without an ERP system, the need for greater functionality can lead to costly and time-consuming changes needing to be made to the business. Yet with an ERP system, you can easily plug in new functionality based on established tools. Alternatively, you can work with a dedicated developer to seamlessly integrate bespoke new tools and functionality into the rest of your business processes.
Your Business Keeps Growing
We can’t deny that this is a nice problem to have. But it is a problem nonetheless. Every month you find your turnover and your profit growing, you have new clients coming through the door and new team members begin to get settled in.
Yet new growth means new problems to solve. What was working for you just a couple of months ago is no longer suitable. So, not only do you have to deal with the increase in work, but you also need to find new solutions and tools to manage workflow.
This is where an ERP system can come into play. Most ERPs are built in a way that allows businesses to seamlessly unlock new functionality as and when they grow.
For example, a brand new start-up with just a couple of employees may invest in an ERP system to help them manage business processes. They use the accounting section to record expenses, turnover and deal with payroll. As the company grows, its ERP system will offer them more advanced functionality such as helping them deal with increased payroll needs and VAT.
Summary
It is clear that many businesses can benefit from the adoption of an ERP system. You can use the signs we have outlined in this article to better assess whether you are ready for an ERP system. One of the great things about these systems is that you can benefit from them at practically any point of your business journey and rely on them to grow with you as you expand.