Why ERP Is the Start of Digital Transformation
Digital transformation is a buzzword that many businesses are conscious of. However, many companies experience confusion as to what is digital transformation and how to embark on a successful digital transformation strategy. Implementing a modern Enterprise Resource Planning (ERP) solution often forms the basis of robust, sustainable digital transformation strategies but can be overlooked by businesses who fail to appreciate the role ERP plays in this arena.
Digital transformation is a buzzword that many businesses are conscious of. However, many companies experience confusion as to what is digital transformation and how to embark on a successful digital transformation strategy. Implementing a modern Enterprise Resource Planning (ERP) solution often forms the basis of robust, sustainable digital transformation strategies but can be overlooked by businesses who fail to appreciate the role ERP plays in this arena.
What is digital transformation?
Digital transformation is more than just a website or mobile app. It is a mindset and a response to dealing with an increasingly competitive and challenging business environment. It’s about thinking differently about your business, encouraging innovation and/or developing new business models.
For the most part, digital transformation strategies are about leveraging technologies to realise efficiencies in your organisation; from improving the experience of your organisation’s employees, customers and suppliers to all partners and stakeholders. ERP is one of the most powerful ways to do this, as robust ERP software combines analytics, automation, and big data to drive process and operational productivity and efficiencies.
The big impact ERP can make in your business
Since ERP takes an overall look at your entire organisation, it has the power to transform all the processes within your business; from simplifying inventory management to increasingefficiencies across sales, purchasing, finance, and accounting.
This is not the only way ERP can help your business achieve its digital transformation goals.
There are numerous other opportunities ERP affords to businesses who want to future-proof themselves as far as possible.
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Make impactful, data-driven business decisions: Modern ERP enables the seamless flow of information enterprise-wide. And it's not all about looking at historic reports but more about actionable, real-time data being pushed out to the people who need it, when they need it and in a format they need it in.
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Add a competitive edge - getting digital transformation right can be challenging, but there’s no doubt that a digital transformation strategy places your business in a position to take advantage of new opportunities. Your ERP solution will be customised according to your organisation’s needs. And uniquely configured to help you achieve not only today’s business KPIs but have the flexibility to accommodate those of the future too.
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Integration - an ERP solution performs various tasks through various features but it may still fail to satisfy a niche requirement in your business. Another app or solution could satisfy this need and still be fully integrated with your ERP solution so you retain that important ‘one version of the truth.’ Indeed, integrating ‘best of breed’ solutions with your ERP solution will become the norm going forward as businesses look to capitalise on the wealth of niche solutions on offer.
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Scalability - to grow you need to scale. But scalability is much easier said than done. Furthermore, a business doesn’t scale in a vacuum. Tools, processes, and functions need to adapt too in order to support businesses that are scaling. A modern ERP system is designed to do just that. Your customised ERP solution will be able to handle various business tasks regardless of how small your business is now. Or how large you grow to be.
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Boosted performance - ERP is focused on driving efficiencies within your business through automation. Employee productivity is boosted through manual tasks being taken care of via an ERP solution. This is amplified through the use of mobile devices in providing key information and controls to sales, deliveries, warehousing, purchasing, and management. This effectively frees up more time for employees to focus on strategic and value-add tasks.
ERP and business objectives
Modern ERP solutions are not the preserve alone of Fortune 500 companies. Companies of all sizes gain enormous benefits from implementing a perfect fit ERP solution in their businesses too.
For any business grappling with the question of how to “do” digital transformation right, investigating the benefits of a modernERP system is a great place to start. With a technology solution, uniquely optimised to help you achieve your business goals, you can unleash greater potential within your business and gain a competitive edge that future-proofs your organisation.
Click here for more information on how the steps involved in creating a digital transformation strategy and what role your ERP system should play click here.