A lot of companies are under the impression that only big corporations need an ERP system. However, as your company starts to grow, you’ll notice that your current IT system might not be catching up fast enough. Are you unsure when it’s the right time to invest in an ERP system? If your answer is yes to one or more of the signs below, you might want to find a way to convince the board to get an ERP system.
1. Your business is growing.
It’s hard to imagine a company that does not have growth as one of their main goals. With growth comes great responsibilities. If your current IT system is unable to support the growth of your business, you might want to start investing in an ERP system.
An ERP system should be scalable: create the ability to accommodate international operation, add new companies or entities and supply the right quantities at the right place at the right time.
2. Your business involves multiple processes and don’t integrate easily.
Having multiple databases can cost a lot of time and money. If your current IT system does not integrate easily with other lines of business applications (CRM, HR, Sales Tax etc.) this can raise unnecessary tasks and stagnate employee productivity.
Investing in an ERP ensures that all your processes run smoothly. The solution links all the different databases together and each employee capable of accessing the information at any time.
3. Your business process is not easy to use.
Updating the software, tracking down the changes, customizing and integrating with the current IT system may demand more effort and financial resources than the actual system is worth. No matter the size of the organization, maintaining different IT resources is always a hard task.
Implementing an ERP solution will walk you through the right path to respond to the fast changing business environment.
4. Your current IT system isn’t reducing business risks.
Business risk may involve not having an integrated business process that helps in giving for insight into your business. If your current system is not managing risk and replacing outdated systems, data transfers and information accessibility may not go as smoothly. Inflexible and unreliable systems can jeopardize your business and cause operational issues such as, not having clear insight on whether you need to improve your product and/or services quality.
ERP systems can increase visibility into your organization by using scorecards and dashboards, but also data warehousing reporting and analysis.
5. Your business involves manual business processes.
Do your employees deal with a business process that delivers basic, entry-level accounting options and require additional products for financial reporting, budgeting and inventory management? Are they required to manually insert important data or are you dependant on specific, important individuals to do the job? It takes more effort and actual space to keep track of paper documents, find information and keep details secure and ordered. Consider an ERP solution that can automate business processes.
With an ERP solution, you are able to install electronic payments, orders and alerts, automated data capture, and you are less prone to mistakes occurring from human error.
6. You’re having difficulty with extracting important data.
Information is a very important source of making decision in any organization. Can management retrieve this information easily when and how they need it? Do you find yourself combining different spreadsheets from different sources to retrieve the needed data? Try and calculate the time in which you can get information of your demand, sales margin and other accounting details. If this takes way more time than it needs to, maybe it’s best to start looking for an ERP system.
Having an ERP will let you have a smooth flow in your business. Collecting, transferring and analyzing data becomes a much easier task with one.
7. Accounting and other processes are becoming burdensome and unmanageable.
You notice period closes and tax filings are becoming burdensome. Your accounting staffs are spending a lot of time in inserting data on financial conditions and they rely on paperwork for sales orders and invoices, making the operational costs of the organization to shoot up. Processing financial information involving numerous employee personnel can be a tedious job.
An ERP solution will reduce the pressure and frustration on your accountants and enable them to deliver critical reports for organizational decision making without delay.
8. You’re dealing with a lot of unforeseen costs.
Dealing with unanticipated costs can be a strain on your company. When your assets are not administered properly, the running and operating costs of the businesses increases, such as multiple entries and hours of time spent on your business processes.
ERP solutions provides you exact reports on any discrepancies, and thus helps you to maintain the running and operating costs of your business.
9. You’re experiencing customer satisfaction issues.
Customers can make or break your company. If you find yourself being unable to give your customers what they want, find out what is causing this disappointment. An ERP solution will provide timely delivery of good and services and help maintain a good customer relationship.
Integrate your CRM with ERP applications and gain a competitive edge through better judgement into sales, marketing and customer management processes and allow your company to quote promise dates and meet or exceed on-time delivery standards.
10. There is mention of poor organisational performance.
Poor productivity from slow system performance can be a strain on your business. Are you constantly restoring files from backup or experiencing tons of error messages? When your organizational performance is hampered by inadequate processes, this can cause a decrease in data integrity.
An ERP system is a relational database structure with built in protection against data integrity and performance issues.