Recently we looked at 5 ways that an ERP can help out CEOs. One of the biggest ways that an ERP can assist senior management is by helping leaders to make better, and more informed decisions. Making these tough calls is one of the hardest parts of being in senior management, as what you decide can have a major impact on your company and the people who work for you. And in today’s fast paced business world, you need to make decisions quicker than ever before — decisions that can have a major outcome on your bottom-line and viability as a company, so today we’re going to look a little closer at how an ERP can help you make decisions more strategically and effectively.
A 2015 study found that 46% of CFOs are making important business decisions by relying on instinct alone. As a leader in your organization you have a great deal of experience and knowledge about your company and industry, but relying on only your gut, instead of evaluating hard facts, can be extremely risky. The same study found that one in three companies cited not having access to timely internal data as a key factor in making bad decisions. This is where having the right ERP comes in as your ERP system can give you access to key data and facts, in real-time, to help you make more considered and strategic decisions.
To remain competitive and viable as a small- to mid-sized manufacturer, your business strategy needs to be driven by clear, comprehensive and timely information. The marketplace is moving faster than ever before, with new competitors entering the market, the price of raw goods fluctuating, and ever changing developments in trade policy and the manufacturing industry. To stay competitive and keep on top of this fast-paced business climate you need to be using an ERP system that can help you access and analyze key data and figures that will help you make better decisions and keep a competitive edge.
How does an ERP help you make better decisions?
Arguably the biggest factor in making decisions is having access to the right data. Being able to respond quickly and appropriately to market demands will set you up for success. To take advantage of opportunities and gain a competitive advantage, you need an ERP system that can deliver the right data, to the right people, when they need it. An ERP will let you access data internally — such as from production, finance and accounting, purchasing, marketing and sales, as well as from external partners such as suppliers and customers. Your ERP can help you aggregate, and analyze this information to unlock the data and create reports that will help you truly understand your business better. And armed with this information you will be able to make more informed decisions, create a more efficient shop, and be confident that the path you have chosen is the right one for your business.
One Source of Truth
An ERP system lets your business have a single source for information which is one of the biggest advantages of having an ERP system in terms of making decisions. With all of your data and information stored in one system, you can be confident that the data you are using to make your decisions is correct. No more tracking down spreadsheets from all of your departments only to find that there are discrepancies between departments. An ERP will let you access the data you need, when you need it, to make informed and timely decisions. Instead of always feeling that you are reacting, and playing catch up, you can stay on top of your business.
Another key way an ERP can help you make decisions is through the collaboration between departments that an ERP creates. A recent study by Aberdeen Group found that businesses with social ERP functionality are 2.5 times as likely to have real-time visibility into the status of all processes and are 145% more likely to have real-time collaboration across departments and divisions. When your departments are sharing information through your ERP system, you will have access to more information and valuable insights from different teams within your organization, which will ultimately help guide you to make better decisions.
Want to make better and informed decisions? What are you waiting for — invest in the right ERP for your business.
Get your eBook Scared to implement a new ERP?
"*" indicates required fields