Organizations have huge inflows of data that are difficult to handle. This leads to delay in data processing and also affects growth. However, with efficient data entry services, businesses can manage and organize all their data, correct errors and inconsistencies, enhance data quality, and improve operational efficiency. For efficient management of data, business now implement Enterprise Resource Planning (ERP), a set of software tools that helps with proper channelling of data between departments and their functions in an organization. ERP helps in cutting down wasteful process, improves efficiency and ensures clarity across all departmental operations and information cycles.
Today, almost all businesses are in the process of digital transformation. ERP allows businesses to meet their objectives, guides them through all phases of digitization, and simplifies the digitization process. The key advantages of ERP are as follows:
- Minimizes operational cost: One of the main advantages of ERP is that it helps to minimize the overhead costs by streamlining business processes like accounts, customer service, production, procurement, and so on. It supports integrated operations that help to keep costs within the allocated budget.
- Better productivity: An ERP system helps with better communications between departments and business processes with automated workflow processing. It makes accessing and retrieving information easy, which in turn, makes reporting much easier. This ensures consistent and accurate reporting and enhances productivity.
- Improved data security: ERP protects against data breach with its firewalls and access controls and also comes with a data warehouse that monitors access. The admin can limit access to sensitive data and can also lock such data. ERP can alert to compliance and security threats, and ensure the safety of critical business data.
- Enables good business collaborations: ERP helps improve interdepartmental data interactions and this strengthens collaboration inside the organization. A data update made in any department can be viewed by anyone across the organization in real time. This will help speed up business operations. ERP also facilitates cloud storage which makes collaborations easier. All data can be viewed using smart phones, laptops etc.
Case study
Walmart, one of the top ten largest companies in US has sales around $500 billion annually, according to an Investopedia article. It is a global supercenter, discount store and market that owns several brands. To keep the stores stocked, it works with various suppliers and online seller partnerships. Walmart works with many ERP providers, and in 2018, they announced a strategic partnership to adopt a digital transformation strategy with the following objectives:
- To develop a cloud based system that helps serves as a framework for managing all its resources.
- Integrate Microsoft 365
- Improve opportunities for e commerce
- Improve automated warehousing capabilities
- Integration with SAP Hana and other legacy inventory management solutions
- Integration with emerging blockchain solutions
Challenges of Implementing ERP
Implementing ERP is not an easy task. It requires proper planning, integration and right mix of ERP resources to gain maximum benefits. However, though businesses may engage highly talented professionals to implement ERP, there are several challenges involved in the process:
- Poor knowledge about ERP: Organizations may have a poor idea about the capabilities of an ERP system. Choosing the right ERP system for their needs requires expertise, and businesses that do not have this know-how cannot succeed in the endeavor. This problem can be resolved by hiring a professional who can select and execute the system flawlessly.
- Misconceptions about ERP: Many small or medium businesses believe that ERP software is meant only for large companies. Implementation of ERP is regarded as an expensive affair and highly complicated process that require rigorous training and consistent updating of the software. All these misconceptions prevent companies from implementing ERP, though the truth is that ERP can augment business capabilities with its integrated functionalities.
- Resistance from employees: Executing ERP can bring about many changes in an organization. It will usher in a systematic workflow along with a dynamic work environment. It can generate timely reports and predictions required for the future growth of the company. Continuous training programs will be needed for employees to get acquainted with and adjust to the new system. User interface changes and difficulties associated with finding the functions and features can complicate the process. All of this can cause huge disruption to the current working pattern. However, with a professional ERP vendor and well informed training, the transition to a new ERP system can be done smoothly.
- Financial concerns: Businesses have to stay within budget and system upgrades and related tasks can prove a financial concern. Implementing ERP can be expensive and it may take months to fully integrate the system and gain benefits from it. This is a major challenge which keeps companies from implementing ERP.
These challenges can be resolved by hiring experts to implement ERP. ERP is an asset that can help businesses integrate information seamlessly throughout various departments and thus eliminate redundancies, miscommunication and human error. Reliable data entry services are available to help businesses improve the quality of their data for successful implementation of enterprise resource planning.
