In this article, we’ll take a close look at five of the most significant ERP benefits. This list is by no means comprehensive but is a good starting point for those wanting to know more about what an ERP system can help their business achieve.
But first, let’s start from the beginning: what is ERP software?
What is ERP software?
Put simply, ERP software is a tool that centralises a company's database, automates tasks, and streamlines operational procedures. The end-goal is to optimise your operations and maximise your employees’ time so that they can focus on serving your clients and growing your business. In practical terms, this means an increase in revenue margins and efficiencies.
Because it touches many areas of your business, ERP software is unique. It's an end-to-end solution with features such as:
- Analytics and Reporting
- Customer relationship management (CRM)
- Human resources
- Inventory management
- …and a whole lot more
The question, then, is this: is ERP software worth the financial investment? To make the right decision for your business, you need to weigh up the benefits of ERP.
Five benefits of ERP
ERP systems are a valuable asset for many organisations. They enable your operations to run more smoothly by unifying and securing your information, automating processes, and producing instant, easy-to-understand reports.
Let’s take a closer look at some of the most significant benefits of ERP for businesses.
1. End-to-end visibility
ERP applications provide access to every mission-critical process within your organisation by making data from all departments consistent and readily available to employees and senior management.
What’s more, the storage of business data in a central location facilitates improved collaboration – something that is more important now than ever before.
Complete visibility facilitates more meaningful workflows and allows inter-departmental procedures to be tracked with optimal efficiency. It also makes decision-making fast and accurate, as leaders and team members can feel confident that they are seeing the full picture at any given moment in time.
2. Predictable IT costs
Every dollar counts. Although ERP software requires an upfront investment, it merges your IT expenses into one predictable cost. Instead of allocating resources to several systems – all of which may require dedicated personnel, infrastructure, support, and licenses – you can focus these expenses into one ERP system.
Furthermore, your existing dispersed IT spending could be higher than the cost of a central ERP, which means you may even minimise your overall IT costs.
Implementing a single system also decreases training requirements for end-users – they only need to become familiar with one system, rather than trying to wrap their heads around several.
Finally, ERP systems ensure you only pay for the functionality you need. A typical ERP may consist of accounting, CRM, HR management, and supply chain management, but the structure of the software is modular. Use what you need. Leave what you don’t. And take advantage of your ERP’s ability to guarantee effortless business scalability.
3. Enhanced reporting
Higher quality reporting and insights is a major advantage of ERP software. Utilising an ERP suite across various departments means your organisation has a unified reporting system for each process.
Plus, with a single point of truth, an ERP system can create helpful reports and analytics on demand. This means you can analyse and compare data across departments without the hassle of relying on out-dated spreadsheets and convoluted email chains.
4. Improved efficiency
Along with decreased IT and training expenses, an ERP solution can reduce the time and effort needed by your workforce to carry out their day-to-day tasks. ERP software can lower or eliminate recurring manual processes, which then, in turn, maximises staff members’ ability to focus on revenue-generating activities.
In addition, an ERP system can support the implementation and enforcement of market best-practice procedures.
5. Data security
Australia is one of the most-hacked countries in the world. In light of this, one of the top benefits of ERP is improved information security. The MYOB ERP solutions have intrinsic controls to ensure the safety of your data.
ERP platforms maintain a high level of data security because they operate through a single input system. Merging data from multiple systems can trigger disputes between sources. In contrast, a single repository of information helps safeguard the accuracy, consistency, and security of your business's data.
Both cloud-based and on-premise ERP systems deliver a higher degree of security. That being said, cloud-based ERP systems – contrary to what some people assume – actually provide an additional layer of protection. When all of your company's information is managed through the cloud, you benefit from round-the-clock professionals hired by suppliers to guarantee the security of their servers. This makes it even more challenging for malicious hackers to instigate attacks in the same way they would on a private server.
Experience the benefits of ERP first-hand
If you’re ready to experience the benefits of ERP software in your business, get in touch. Give our expert team a call today to see one of the impressive MYOB ERP solutions in action and discover what it could do for your future.