In the ever-changing landscape of business, technology is playing a huge role, helping us improve and optimise the way we manage our operations. Business management systems aim to encompass these smart tools and functionality within an all-in-one, centralised solution. Such software can be suitable for small businesses and large organisations in a variety of industries as well as customised to meet their specific needs. But, is it worth the costly investment? You can decide for yourself as you read on about the 6 key benefits of ERP systems.
1. Increased productivity and efficiency
One of the major advantages of BMS is the significant effects it can have on your company’s overall efficiency and productivity. There are a lot of different factors involved in this, however, mainly it is due to a number of processes being optimised or automated. This helps the various operations run much faster, smoother and with minimal errors.
Not only that, the core value of a business management system is the centralisation of all data and operations within a single dashboard, which makes all of this information easily accessible between departments. As a result, it’s not just the processes themselves that become more efficient but also the way your employees collaborate too - more about that in the next point.
2. Improved communication
ERP software makes communication and collaboration between the teams much easier and smoother. Due to a selection of convenient project management tools, calendars, notes, tags, campaign management and task assignment tools, etc., the different departments within your business will be able to achieve frictionless collaboration with one another. All of the necessary data is accessible to the assigned persons in real-time and there are many ways to notify your colleagues on specific tasks. This is particularly useful for businesses that hire remote workers from across the globe.
Additionally, the improvements in communication are apparent when it comes to customer relationship management. Most advanced systems will have dedicated CRM and project management tools, allowing businesses to nurture new and ongoing relationships with their clients. With a lot of the administrative / routine tasks automated, your staff will be able to focus on providing high-quality customer support and creating personalised communication efforts to ensure customer satisfaction.
3. Reduced costs
Another key benefit of a business management system is the reduced costs. By automating and streamlining a range of your business processes, the software can help you save lots of valuable resources, including time and money. For instance, if you and your team can minimise unnecessary meetings and emails as well as time-consuming routine tasks, each individual project will therefore take less time and resources to complete. As a result, the overall costs of the project are reduced too.
Furthermore, in the majority of cases, a single ERP system is much more cost-effective than using multiple third-party business management tools. Of course, the initial investment into the implementation and customisation of the system may be quite hefty, however, the ROI will be evident in the long-run. For example, the open-source Odoo ERP system has one of the cheapest fees in the market, yet offers an incredibly advanced set of capabilities and functionality as well as unlimited future scalability opportunities.
4. Better data management
A centralised and integrated BMS can massively improve the way your company collects, stores and analyses its data. First of all, a lot of the data management processes can be automated, as the software can autonomously collect essential data from the various data points and store it within a single database. This includes AI-powered consumer and market research, customer insights from social media, existing clients’ contact details and other information as well as processing of newly gained leads from cold email campaigns.
Secondly, with a well-organised and centralised set of data, you are able to easily generate reports and use these valuable insights in order to make better-informed business decisions. Data is of paramount importance to the strategic planning of any organisation, and so ensuring that it is analysed effectively is key.
5. Enhanced security
Cybersecurity is one of the greatest concerns in every business - a data breach or a cyber attack can have devastating consequences on the company’s financial and reputational position. ERP systems maximise security using a wide range of different methods, including data encryption, firewall protection, network segmentation, regular backups, security patches or updates and sufficient user access control. Since a BMS is an all-in-one solution, it also involves a lot less risks than, say, transferring sensitive data between multiple third-party apps, each of which may be vulnerable to cyber threats.
Besides general security measures and functionality, business management software can also reduce the risks of data breaches by simply minimising potential human errors. For instance, by automating and streamlining a number of tasks related to finance and accountancy, you are a lot less likely to run into inaccuracies, typos or other errors. Besides, this also means that fewer employees will require access to sensitive company data - only those directly responsible for handling it. Finding the accountable persons in case of any issues is much easier too, using controlled user access.
6. Greater scalability
For any growth-seeking organisation, ensuring their ability to scale operations in the future can save a whole lot of potential issues and headaches. Most advanced ERP systems will offer great scalability possibilities without much additional investment. You may add any apps or modules as well as customise certain tools on-demand, in order to cater for new operations within your company. However, you will not have to worry about limited data storage, functionality or a lack of tools available. Hiring additional employees or expanding to new locations should not be an issue either. As a result, you may focus your energy on making the best strategic decisions in order to accelerate your growth.
The bottom line
All of the above benefits of ERP systems add up to help you achieve business excellence throughout your organisation. It ensures that every process or tool is optimised to its 100%, each functionality is suited well to your specific needs and that all team members are able to collaborate in the most effective and frictionless manner possible.
As such, business management software can also have a highly positive impact on your bottom line, helping your company grow and increase profits. The equation goes something like: happy customers + happy employees = increased sales and, therefore, higher profits.
The 6 points outlined in this article are the most general advantages of business management systems that every single organisation will benefit from. However, it is important to mention that advanced ERP software can add value in many more ways than that, especially when it comes to tailor-made solutions to meet specific industry requirements or particular business needs. From fleet management and stock administration tools to convenient functionality for e-shops — BMS will have a way to optimise and improve your existing operations.
Ready to implement a Business Management Software?
The highly flexible, open-source Odoo ERP system offers by far the best cost-to-value ratio in the market