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Tech Insights 5 min read

The benefits of an ERP in business management

ERP systems provide a significant benefit in the management of businesses. An ERP, such as Microsoft Dynamics, can help your company streamline customer service and accelerate development since it provides a comprehensive perspective of all aspects of your organization. It is incredibly simple to use, built for speed, and engineered for flexibility thanks to its sophisticated cloud-hosted software. When it comes to businesses that look into the future, this is their perfect solution.

Let us begin by defining what an ERP is, and then go over the advantages that ERPs bring for businesses.

What is ERP?

ERP is the acronym for Enterprise Resource Planning. ERP software is a type of business management software that is designed to be utilized across a company. They are made to assist you with a variety of tasks, including accounting, supply chain management, Inventory management, and more.

As a result, an ERP's benefit is that it integrates all of a company's activities into a single package that is available to all users, depending on their position. This allows you optimal visibility into all customer and supplier information, manufacturing, sales, inventory, human resources data, and so on, all under one roof.

What are the benefits of using an ERP?

The top five benefits of using an ERP system

1st benefit of an ERP: improvement of company organization

You can make the most of your information thanks to automation, the mobility provided by the system, and the unification of all your data. Automated data gathering, in many circumstances, leads to improved efficiency and easier administration when using an ERP system for your business. Today's business processes are becoming more and more complex, forcing you to devote an even greater amount of time to managing your data and resources to satisfy the demands of your clients. You can automate these operations using an ERP like Microsoft Dynamics 365 Business Central by consolidating the data needed to make your company's products or services into one system.

2nd benefit of an ERP: increased productivity  

More accurate projections, lower operating expenses, and faster decision-making are all benefits of increased productivity. Furthermore, centralizing your company's data in one location improves the efficiency of your procedures quite significantly. Your work teams will be able to focus on more productive activities since they will spend less time looking for information.

3rd benefit of an ERP: data optimization

Your work teams will spend less time on research and corrections as a result of the elimination of manual duplicate entries and the uniformity of information formats, thus allowing them to focus on their core tasks.

4th benefit of an ERP: enhanced collaboration within the company

You improve your company's capacity to collaborate by allowing all teams to access a single database. The days of compartmentalized work and dissatisfaction among separate workgroups are over. Teams collaborate using the same linked system, which includes centralized data and streamlined procedures and workflows. An ERP Cloud solution is ideal for your business.

5th benefit of an ERP: stronger data security

The advantage of ERP in terms of data security is that it is a great method to keep critical information from being leaked. Standard-based security procedures, risk and failure management, attack prevention, and security enhancement processes are all used by ERP systems to guarantee data protection. You receive dedicated security resources with ERP, you do not have to worry about viruses, and your data is spread over numerous servers.

What are the drawbacks of using an ERP?

Despite the many benefits of an ERP, there are a few drawbacks, albeit they are minor and few.

1st Disadvantage of an ERP: Costs in terms of both time and money

It takes time and money to install an ERP system, but it is an investment that will boost your company's capital once completed. You may also need to factor in the cost of third-party software add-ons, as well as the time it takes to install and maintain them. Finally, you also need to consider the cost of initial and ongoing training to ensure that everyone using the ERP is doing so optimally.

Are you part of a company that is hesitating to embrace digital transformation? Is your reluctance to embark on this adventure related to your budget or your lack of familiarity with digital tools? Don't panic, there are different subsidies for your ERP implementation project!

2nd Disadvantage of an ERP: ERP deployment is complicated

Choosing and deploying an ERP system is not for everyone. It is difficult to pick the correct enterprise resource planning system, and the stakes are typically substantial. When it comes to your business, you want the finest possible option.

Fortunately, you do not have to give up the benefits of an ERP, as Gestisoft provides you with all the assistance you need during the whole deployment process, including follow-ups and training. While creating a robust data conversion plan may appear to be a daunting task, there are solutions and resources available to help achieve this. Remember that bad data conversion will create delays and raise the cost of adopting an ERP. There are certain factors that need to be known before implementing ERP software.

As Winston Churchill would say, “The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.” So, let's overcome the difficulties together because Gestisoft has set up training courses to help you master your ERP system!

ERP's benefits clearly exceed its drawbacks, shown above. A quick return on your investment of both time and money is to be expected within a short amount of time. In addition to the proper integration of the organization with its IT systems, successful ERP adoption necessitates management support, internal team leaders, and a trusted external partner. It is vital to remember that ERP software, like any other business technology, is not what makes an implementation successful or fail. The business environment, management, and end-users, as well as project planning, methodology, and execution, all influence the ERP system's return on investment. As a result, choosing the right partner for the selection and deployment of an ERP is vital.

Choose Gestisoft to deploy your ERP

All in all, you can rely on an ERP's benefit of connectivity and responsiveness to maximize your opportunities in the face of competition. It is time to upgrade your business software with Microsoft Dynamics 365 Business Central, a new generation of software that automates routine tasks while also providing you with actionable data. It helps you to manage your entire business with efficiency.

It also allows you to be more productive, perceptive, and effective, whether you work in retail, healthcare, or manufacturing. Gestisoft's experts can help you reap the benefits of an ERP. Don’t hesitate to get in touch with us if you would like to learn more.

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June 07, 2022 by Frédéric Charest VP of Marketing

Data-driven Growth Marketer with a Passion for SEO - Driving Results through Analytics and Optimization