In the modern business environment almost all the business entities adopt the digitalization process and to digitize their business activities ERP based software will be the best solution. Cloud based ERP software will enable the business entities to manage all the business activities from anywhere and from any place, which will enhance the mobility of the business activities.
An ERP system can assist the business to achieve the desired goals of the company which will accelerate the growth rate of such organizations. An efficient ERP software can streamline the business activities through an automation system and that will enable the management to get important information related to the business needs and thus they can take decisions accordingly which will improve the business growth in the future.
The 10 ways in which a cloud based ERP software can help a business entity to accelerate their growth rate are narrated below:
1. Integration with different departments of the company
- A company has several departments and the coordination of all the departments is very essential for the smooth running of the business operations. If one of the departments underperforms it will create an adverse impact on the overall process flow of the business activities so coordination among all the departments of the business is very essential for the sustainable growth of the business.
- An efficient ERP system can provide a standalone solution which will assist the user to integrate all the departments of the company though a single platform, which ensures that all the information that are stored in the ERP by the different departments of the organisation are arranged in a centralised way so that all the activities of the different departments can be monitored and analysed through a single window system.
- By integrating the different departments of the organisation the ERP system can keep the process flow of the operational activities hassle free, and ensure that the business objectives can be achieved as expected by the management.
2. Data analysis
- An efficient ERP software consists of various data analysis techniques and tools from which it can be possible for a management of any organisation to take decisions that will enhance the business growth in the future.
- The various data that are stored in a cloud based ERP system, like client data, production related data, data related to purchase and sales can be analyzed by using techniques like ratio analysis, trend analysis, statistical techniques like standard deviation of the data to measure risk, and other graphical charts and tools which will assist the management to analyze such financial data and take decisions in accordance to the output of such data analysis tools.
- A cloud based ERP system also allows corrections and updates of the data which will enable the management to get accurate information from the system and the decisions that are taken on the basis of such accurate data will be more effective in bringing better business opportunities for the company.
3. Customer relationship management system
- In most of the ERP system a customer relationship management or CRM is present from which the organisation will be able to get information related to the customers through a central database which will enable them to track all the customers easily.
- The customer relationship management system of an ERP system will assist the business to understand the requirements of the customers and based on that they can make changes in their production process or make changes in the existing product so that the demand of the products can be increased which will improve the revenue generating capacity of the company.
- An efficient customer relationship management system will also enable the business to generate new leads for the business, manage the sales pipeline activities and to track all the customer contacts which will make it easier for the management to understand the needs of the customers and to quickly solve all their grievances.
4. Accounting of business transactions
- Another way in which the ERP can help the business entity to grow, is by providing an efficient automated accounting system which will enable the management of any organisation to manage all their financial activities and to get all the financial reports based on which both the external and internal stakeholders of the business can take such decisions that will accelerate the growth of the business.
- The accounting modules of a cloud based ERP system will help the business entities to record transactions related to purchase sales, production and other business transactions though a automation process which will bring more transparency in the business which will create a reputed brand image of the company I the market and that will act as a potential driver of the growth rate of the business.
5. Monitoring and visibility of business information
- One of the major benefits that a cloud based ERP system can provide to any business entity is to monitor all the activities of the organisation through a single system and a comprehensive visibility system, from which it can be possible to get the view of all the records of business information and take quick decisions accordingly.
6. Reporting
- The user will get detailed reports of all the business related transactions from a cloud based ERP which will enable them to take important business decisions that will improve their performance in the future.
- The most useful feature that a cloud based ERP system can provide is that a user can customize the reports as per their requirement which allows the user to get more unconventional reports which are essential for business development, however such reports will not be possible to generate from other desktop based software.
- An ERP software usually have different kind of charts, graphs and other visual presentation tools which make it more easier for the user to interpret the reports
7. Automation process
- An ERP system allows the user to automate all the business activities which include accounting, inventory management, or to generate all the business reports. The automation process will eliminate the number of errors in the system as it will eradicate manual interference and give more accurate results.
8. Cost efficient
- The ERP system can reduce the number of inefficient employees thus saving cost. In addition to that, the maintenance cost of a cloud based ERP system is lower than any desktop based software. Thus by decreasing the excessive cost of the business it can assist the business growth.
9. Increase the efficiency of business operations
- The ERP system through its different modules can enhance the operational efficiency of the business and thus it will enhance the business growth in the future. For instance if an organization produce several kind of items and sold such items in the market by implementing the ERP system it can be easily detected which items are more saleable and which items remain in inventory for long time based on that the company can give emphasis on the items which are sold more, and that will help to generate higher revenue. In this way an ERP can increase the efficiency of the business operations.
- Through the automation process a ERP system can also improve the operational activities of the business as this will save time and also eliminate the risk of occurrence of any error in the process of operation.
10. Mobility
- Since the ERP system can be used from any place and can be accessed from anywhere only a stable internet connection is required, this system increases the mobility of the business activities.
- The ERP system also enables the users to track and monitor all the information of the business from any place for which decision making becomes easier which also becomes one of the factors that can accelerate business growth.
- These are some basic features of ERP that can help the business entities to accelerate business growth in order to sustain in the competitive business environment.
FAQ
Q: What is the main advantage of using a cloud-based ERP software for modern businesses?
A : In the modern business environment almost all the business entities adopt the digitization process and to digitize their business activities ERP based software will be the best solution. Cloud based ERP software will enable the business entities to manage all the business activities from anywhere and from any place, which will enhance the mobility of the business activities.
Q: How does an ERP system facilitate the integration of different departments within a company?
A : An efficient ERP system can provide a standalone solution which will assist the user to integrate all the departments of the company though a single platform, which ensures that all the information that are stored in the ERP by the different departments of the organization are arranged in a centralized way so that all the activities of the different departments can be monitored and analyzed through a single window system.
Q: Why is data analysis important in a cloud-based ERP system for business growth?
A : An efficient ERP software consists of various data analysis techniques and tools from which it can be possible for a management of any organization to take decisions that will enhance the business growth in the future. The various data that are stored in a cloud based ERP system, like client data, production related data, data related to purchase and sales can be analysed by using techniques like ratio analysis, trend analysis, statistical techniques like standard deviation of the data to measure risk, and other graphical charts and tools which will assist the management to analyse such financial data and take decisions in accordance to the output of such data analysis tools.”
Q: How does the customer relationship management (CRM) system in ERP help businesses?
A : In most of the ERP system a customer relationship management or CRM is present from which the organization will be able to get information related to the customers through a central database which will enable them to track all the customers easily. The customer relationship management system of an ERP system will assist the business to understand the requirements of the customers and based on that they can make changes in their production process or make changes in the existing product so that the demand of the products can be increased which will improve the revenue generating capacity of the company.
Q: In what way does a cloud-based ERP system support automated accounting processes?
A : Another way in which the ERP can help the business entity to grow, is by providing an efficient automated accounting system which will enable the management of any organization to manage all their financial activities and to get all the financial reports based on which both the external and internal stakeholders of the business can take such decisions that will accelerate the growth of the business.
Q: What kind of reporting advantages does a cloud-based ERP system offer?
A : The user will get detailed reports of all the business related transactions from a cloud based ERP which will enable them to take important business decisions that will improve their performance in the future. The most useful feature that a cloud based ERP system can provide is that a user can customize the reports as per their requirement which allows the user to get more unconventional reports which are essential for business development, however such reports will not be possible to generate from other desktop based software.