According to TEC, 50% of companies soon acquire, upgrade, or plan to update ERP systems. Although buying and implementing an ERP is a business project that requires significant effort, thousands of companies are eager to reap the benefits an ERP system possesses. What stands before such a strong desire to implement an ERP system?
ERP experts from LeverX, an SAP Gold partner and a software development provider, delved into the issue and discovered the top reasons why businesses need an ERP system.
5 Main Reasons Why You Need an ERP System
An ERP solution is a powerful tool for enterprise resource management. The system includes dozens of interconnected modules functioning in concert with one another and allowing companies to address various business challenges. Let’s have a closer look at how an ERP can help your company.
1. Improved Collaboration
When implementing ERP, you receive a single information system that collects data from all enterprise departments. A centralized database is an essential component of an ERP system. How does it work? When data is entered into the system, the information quickly becomes available to everyone who has access.
Thus, the solution provides your organization with a single source of truth to work with. It significantly improves collaboration, reduces errors, and speeds up data exchange between departments.
2. Clearer Analytics and Reporting
Another valuable advantage of an ERP system is improved analytics and reporting capabilities. Since the system records and stores all the data, it becomes an excellent business intelligence tool. With an ERP system, your team can now generate reports in a minute.
Quick access to data allows making decisions based on up-to-date and accurate information: you will be able to identify vulnerabilities in production processes, manage inventory in warehouses, allocate resources efficiently, and quickly respond to changes.
3. Better Customer Service
With the help of an ERP system, you can build good and trusting relationships with existing and new customers. Since most ERPs are equipped with a customer relationship management tool, this duet allows you to understand your customers’ desires and needs and satisfy them with personalized offers. The insight about customer preferences generated by powerful analytics tools can help your sales department formulate the sales strategy to improve lead generation.
4. Streamlined Compliance
If your company grows and does business in different countries, keeping track of all the legal regulations and requirements might be challenging. ERP can significantly simplify compliance and reduce risks associated with it. Thanks to auditing tools designed to assist with documenting essential business data, your employees can quickly generate and send over reports to appropriate governing body’s simple.
5. Cost Minimization
Introducing any tech solution that doesn’t reduce costs is meaningless. According to studies, an ERP can reduce overall operational costs by 23% and administrative expenses by 22%. Next-generation ERP systems can reduce procurement times with the help of analytics, automate manual labor and free up resources, speed up decision making through rapid data collection, and optimize transaction flows and other processes. All of these result in significant cost-saving.
SAP S/4HANA Is a Next-Generation ERP System
SAP S/4HANA is an intelligent ERP that aids companies in efficiently planning resources, making precise data-based decisions, and acting immediately to any market changes and fluctuations. The implementation of SAP S/4HANA creates additional opportunities to improve the efficiency of employees and the company as a whole.
Why do companies migrate to SAP S/4HANA? The common drivers are the following:
– The desire to reduce IT costs
– An aim to enhance efficient business process maintenance with a standardized and simplified business landscape.
– In-memory computing, including real-time reporting, management analytics, predictive analytics, and request-based reports
– High flexibility along with their growing demands.
It’s worth mentioning that companies shouldn’t decide to migrate to SAP S/4HANA based on the common benefits. First, it is essential to analyze all business processes to get the most out of the solution and choose the right migration scenario. Thus, adhere to the following strategy:
1. Analyze your current business situation.
2. Create a clear picture of how SAP S/4HANA will benefit your business.
3. Determine which business processes need to be improved with SAP S/4HANA implementation.
If you’re looking for a reliable technology partner to help you migrate your business to SAP S4/HANA, contact LeverX. Thanks to 19 years of experience working with SAP, their experts are ready to help you unlock the power of SAP S/4HANA and other SAP solutions. From consulting and analysis to post-implementation maintenance and staff training 一 LeverX is ready to assist you at every project lifecycle stage. Book a free consultation!