The market for Enterprise Resource Planning(ERP) software changed significantly after the financial meltdown of 2008, since then businesses have witnessed a slow, fragile return to growth. Firms now want to see a faster return on investment, and products that are quicker and easier to install and integrate.
Deployment of ERP software can have a profound and positive impact on revenues. A sharp reduction in duplication of data and processes, improved cross departmental communication and better financial reporting are just a fraction of what ERP software can deliver, provided that the product is chosen carefully and the deployment and ongoing maintenance are managed well.
An emerging trend in the market is the need for quick to implement, international ERP solutions that support domestic locations, as well as offering strong international features, multiple languages and currency support, multiple charts of accounts, all delivered to multiple locations.
The benefits of ERP software
Although they can be hard to quantify, the financial benefits of ERP may be realized in many different ways. Some organizations use ERP software to make savings in departmental budgets; being able to compare cost savings with revenue gains leads to better decision making when setting targets.
ERP systems can also make it easier to identify non-productive areas of the business, allowing managers to move staff to where they can better benefit the company. Still more savings can be realized by speeding up the monthly close process, in which a firm’s books are temporarily closed and analyzed to produce a set of financial statements that indicate how well the company is performing.
A faster close process allows management information and analysis to be made available sooner, giving the company more time to analyze the figures before producing financial statements. Full or partial automation of this process by ERP can lead to significant reductions in the close cycle. The boost to business from these financial benefits is obvious. Better cash flow and liquidity is a critically important part of both riding out an economic downturn and taking maximum advantage of the recovery.
The question of compliance
The compliance landscape has become harder to navigate safely in recent years. The government has passed record amounts of regulatory legislation and, in the wake of the financial crisis the financial industry in particular has been subjected to further scrutiny.
The financial services industry serves as an ideal illustration of the importance of data governance. The crisis in 2008 ensured that the customers of financial institutions are more clear-eyed than ever about the risks they run in investing their money. Trust is imperative and potential customers insist on knowing that their confidential information is safe.
ERP software can help companies re-engineer their business processes to ensure compliance with government lead legislations.
Positioned for growth
As the economy emerges from recession, firms need to ensure they are positioned for growth and able to take full advantage of the changing conditions. It is clear that the advantages in terms of operational efficiency, financial flexibility and inter-departmental communications offered by ERP systems can provide a distinct competitive advantage to those firms with the foresight and capability to deploy them.
There can be no doubt that ERP software is evolving to meet the demands of businesses both now and in the future.
Learn more by downloading this informative whitepaper, “ERP: Building on the Basics”. Fill out the form below to begin your download.