Why is ERP Necessary For Your Business Growth? [Infographic]

  • Mar 26, 2019
  • Posted By: Robert Jordan
  • Category: Infographics

why ERP necessary for business growth

ERP, an enterprise resource planning software helps organizations to manage their business operations by automating office functions like human resources, technology, and services.
Percentage of companies which implement ERP systems to improve their performance- (17%)
Percentage of companies which implement ERP to position their growth- (12%)

3 ways ERP facilitates in improving the sales and marketing process are:
1) Increases the process of the right message at the right time
2) Effective communication by maintaining a long term relationship
3) Ordered and streamlined process

5 ways in which ERP brings ROI are:
1) Integrates the sharing of information
2) Increases efficiency
3) Real-time data access and governance
4) Reduced cost
5) Improves inventory management

81% of organizations have implemented or are implementing ERP.
85% of the respondents as per the survey report by Skyward Techno implemented ERP in two or more locations
97% of the time distributors are able to deliver on-time shipments

ERP implementation to improve sales and marketing
Sales leaders look to ERP account history and then improve relationships between the firms. These 20% of customers are the ones who drive 80% of sales.
Breakdown of the time spent by your sales representative:
1) Actual time spent on sales-35.7%
2) Time spent on lead generation- 21.8%
3) Time spent on admin tasks-14.8%
4) Time spent on following post sales-18.5%
5) Time spent on other tasks-12.1%

By implementing ERP, your sales representative can focus entirely on sales than focusing on other tasks thus generating more revenue, ROI and growth.

ERP Implementation in organizations
About ERP: ERP is the business process management software which manages daily activities in an organization such as accounting, manufacturing, project management, procurement, etc. ERP systems eliminate duplication and provide data integrity with a single source of truth.

It offers:
a) Lower operational costs
b) Improved efficiency
c) Reduced risk
d) Enhanced collaboration
e) Improved business insight
f) Consistent infrastructure
g) Lower management costs
h) Higher user adoption rates

The major benefits which businesses are able to achieve by implementing ERP are:-
1) Supply chain optimization: This provides real-time visibility of the supply chain and other processes thus making it easy for the decision-makers. They can get a wider view of the supply chain process, reduced cycles of planning, and scheduled production process.

2) Improvement of financial consolidation: It eliminates the data silos and eliminates various tasks thus improving financial consolidation.

3) Reduced costs: The reduced costs in different departments helps in saving the money at an aggregate level.

4) Digitally transforms the business: ERP digitally transforms the business and with right mobility and flexibility. When businesses grow, the ERP system also starts growing and adapting to the changing needs of the organization.

5) Increases competitiveness with an industry built system: Businesses can gain a competitive advantage with agility, compliance, and ability to expand with minimum downtime.

6) Improves customer relation, satisfaction, and retention: On-time delivery service is very crucial to provide customer satisfaction and maintain a long-term relationship. ERP implementation ensures accuracy and produces the right product at the right time.

7) Traceability: ERP helps in tracing stocks, hazards, and defects. It can be even executed in highly regulated industries.

8) Responding to market condition faster: With the help of ERP, businesses can respond faster to the changing requirements of the market. They can make crucial decisions on time with the help of real-time and accurate forecasts.

ERP market growth
ERP market is expected to grow dramatically in the coming years with the industry expected to generate a revenue of 47 billion during the period of 2017-2022.