ERPs – An Essential Investment for Growth

To ensure sustained and effective utilization of the resources and equipment in an entrepreneur, assignment of tasks among the manpower, a need arises to design and document the business processes separately for each department to detect and resolve the obstacles immediately with a view to streamline the activities in a systematic manner. All such processes could be handled through software programme in a smooth manner.

To achieve the basic aim & goal of an entrepreneur, study of human resource and available manpower through its categorization as unskilled, semi-skilled, skilled and highly skilled is made easy through software solution.  Such a study on quality and quantity of manpower has a direct impact on the operations and profits of a Company.  In the event of paucity of sufficient skilled and experienced manpower, company may go for recruitment of required human resource with appropriate skill. Besides the requirement and utilization of human resources in a Company, the profitability is impacted by right equipment with updated technology.  For example, procurement of an updated equipment and machinery with digital facilities or a new internal tracking e-portal would definitely give faster results both in production and productivity.

As the company grows, data of various departments of Company also get start generating gradually for utilization across multiple departments for which an integrated system commonly called as ERP aids a Company’s resource planning for achieving better technical as well as financial targets. ERP helps in sharing the data across the departments more rapidly and mitigates the need for multiple and incompatible technologies. By using the same data throughout the company, the users can be sure that the information is current, complete and correct. In other words, enterprise resource planning software integrates a company’s technologies, processes and people.

Majority of the companies at the very initial stage of their establishment, use a variety of standalone software and tools to handle different business processes.  After a passage of time and at a certain point, these separate resources become more cumbersome and give rise to a situation for switching to an integrated ERP system to get rid over the following circumstances:

1. If the entrepreneur fails to attain the profitable opportunities, then to have predictive analytics and to identify other possible new profitable ventures and avenues, ERP system if immediately adopted, pave the various ways in right direction.
2. If the entrepreneur has a likelihood of errors and duplicity of activities in arriving at a right decision, integrated system of ERP provides accessibility to multiple departments and avoids wastage of time and resources.
3. If the entrepreneur feels it difficult to control and manage its overall activities, a need is felt then to go for restructuring of the organization by adopting ERP to best meet the enhanced requirements as it climbs the ladders of further growth.
4. If the entrepreneur does not have a consolidated MIS reporting figures and the analytics are segregated across multiple systems which may impede the growth, ERP would definitely help in making use of all data by multiple wings altogether.
5. ERP system also allows the employees of an entrepreneur to communicate and work more faster and efficiently without spending too much time on daily activities assigned to different people at different segment to reach the point of higher growth.

USE OF   ERP SYSTEM:

1. An entrepreneur may run the ERP Software System from its own Datacenter on-premises through increased control and flexibility.
2. ERP can be accessed through Cloud-based computing via the internet or Wi-Fi. This gives lower upfront cost with utmost utilization.
3. Companies may also opt to go for Hybrid ERP, also known as two-tier ERP which runs some application on-premise and some in the cloud.

ADVANTAGES OF ERP SYSTEM:

ERP applications are mostly used an integrated and shared database to simplify the IT system in the Company and to streamline the workflow. ERP system helps in identifying new opportunities and to reap them quickly.  Real-time data is obtained through ERP which   is used to go for new opportunities.  This widens the company’s visibility and control.  ERP also aids in the prediction and prevention of potential risks through compliance of statutory regulations and laws of the land as required. Such an exercise allows the companies to accelerate their business and financial reporting. As a corollary to these results, the data and figures are easily accessible allowing companies to act on the insights to improve their performance.

Thus, apart from streamlining the main business processes through use of ERP, every facet and function of the organization will be able to accomplish more while using fewer resources.  This integrated system lowers the overall operational cost of the Entrepreneur in a sustainable way.

Since the whole data, such as purchase orders, requisitions and contracts of a Company, are accessible to all through use of ERP, it improves the collaboration and consistency between various wings/departments throughout the organization.

(source: https://www.indeed.com/career-advice/career-development/forward-integration

If you have any comments, please reach out to us at info@proso.ai