How do I know if my company needs an ERP system?

April 18, 2022

Tags: Managed Teams

 

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Technology advances faster and faster every day precisely to make our lives easier and also enhance the workflow in companies. We spend all day between hundreds of tasks, managing aspects of finances while managing human resources. Although this is common in any company, what should not be seen normally are delays or disorganization when handling data between departments.

 

Disorganization and zero planning, in the end, lead companies directly to failure, preventing them from achieving the expected goals. An ERP software can take you away from this path.

 

ERP stands for enterprise resource planning. It is software that manages a company's finances, supply chain, operations, trading, reporting, manufacturing, and human resource activities", Microsoft explained on its website, making it clear that it is one of the the most modern tools and opportunity that companies are taking advantage of today.

 

“Most companies have a financial and operating system in place, but most of the software available can't go beyond day-to-day business processes or help with future business growth. As companies expand and their needs change, their systems must keep up with them”, they added in an article on their website.

 

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Signs that you need ERP software in your business

 

Your current systems prevent you from growing

 

If your company is growing, it makes sense to have systems and platforms that support this growth. When your softwares are throwing problems due to the expansion of your company, it's time to change them. "If your current software is limiting your market expansion and ability to grow globally, it may be time to implement an ERP system", Microsoft explained.

 

Your current systems don't work well together

 

Over time, your systems may experience failures and communication problems with each other. For example, if each platform is updated at a different rate and frequency, then sooner rather than later you will introduce incompatibilities that will hinder your team's workflow.

 

Your customers are dissatisfied

 

When your customers begin to complain about the service you offer and you notice that they are dissatisfied, it is time to think about transforming your systems and implementing other software that allows you to better serve the public. For example, a customer who calls by phone to consult an order must be attended to as quickly as possible. But if an agent has to consult different systems to fulfill the customer's request, it will stress them out by making them wait on the phone.

 

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Processes are very slow

 

When workflow is too slow, especially when looking up or searching for information, it's time to consider ERP software. It is overwhelming to have to jump between one platform and another in search of a single piece of information, since this represents a waste of time and deteriorates the attention offered to the public, as we explained in the previous point.

 

Wrong business decisions 

 

To make decisions it is essential to be well informed. And how can you be if the search for information in your systems is chaotic? ERPs allow "access to information that will improve your decision-making and reveal ways to improve operational performance in the future".

 

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Pay attention to these points before choosing an ERP software

 

Check your processes

 

If you want to improve or enhance your company's processes, you first have to thoroughly review them to determine how you can improve them or from what perspective you can do it. “The implementation of a new ERP system is a great opportunity to rethink and optimize the operation of your organization. Simply compiling a list of current business processes and trying to replicate them in a new ERP system is the wrong way to go," they noted in a CIO magazine article.

 

According to Forrester analyst Liz Herbert, quoted by CIO, companies should consider exercises like design thinking or journey mapping to explore new and creative ways to improve business processes. Organizations should also open up the brainstorming process to include not just department leaders, but range and file end users, including customers and partners.

 

Think ahead

 

Perfect, you have already managed to implement an ERP platform that works perfectly for you today. And tomorrow? You also need to think ahead and make sure the platform is flexible and scalable, able to adapt to your business as technology advances and your business grows.

 

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Easy to use 

 

It is good that you want the best ERP software for your company, but it is also true that, along with the technical aspects, the platform must have an intuitive, friendly interface that is easy to understand by the end user, your work team. The more comfortable your team is with the new system, the faster they will adapt and adopt the platform.

 

We take into account that companies, faced with a new system, are afraid of losing their current systems or losing the data they have in them. It does not have to be like that. An ERP software can work in conjunction with whatever system you are currently using, and furthermore, since ERPs work through modules, the company can activate only the ones it needs to use.

 

Regarding the choice of the correct ERP software, one of the most important things is to have the advice of the appropriate technological partner, since this will allow you to choose the system that suits your industry and the particular needs of your company. The technological partner is also essential in the implementation, so that it is carried out correctly and you have technical support in the event of a failure.

 

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