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Top Ways How Digitization Is Impacting Your ERP

Thursday, 30 April 2020, 13:55 Hrs

Top Ways How Digitization is Impacting Your ERPPlaying a pivotal role in the growth of an organization, Enterprise Resource Planning (ERP) is a set of applications that can be customized to streamline the business processes. Ensuring a smooth flow of business transactions, ERP assists in enhancing the quality of production, services, and decision making through centralized data storage and improved management. With numerous benefits across various verticals such as customer relationship, supply chain, product delivery, data storage, automation, and various other back-office functions, ERP is here to stay for good.

But, along with the technological improvements, digital transformations are also inevitable for businesses as it not only provides them with a competitive edge over other competitors but also makes them future-ready by acquiring all the industry-relevant trends. Digital transformation includes a variety of recent technological innovations such as Artificial Intelligence (AI), ERP, Internet of Things (IoT), Industry 4.0, Big Data, visual analytics to renovate the currently existing business models. As per a recent study, almost 89.8 percent of businesses have incorporated digitization as their prior business strategy with the service sector acing the list with 95 percent followed by the financial sector and healthcare sector with 93 percent and 92 percent respectively.

To analyze the impact of digitization on ERP and how its combination will harbor a better and effective business process, the below-mentioned points can be of assistance.

  • Enhanced Productivity: Not only the quality and quantity of products but speed is one of the most important aspects while functioning in the industry. By assembling and storing the data in a single space which leads to faster access to data and collaboration of various verticals, a digitized ERP effectively leads towards the objectives of the organization. This strategy ensures faster productivity meanwhile ensuring the finest quality of products and services.
  • Reliability and Flexibility: A Business outcome that satisfies the customers, caters to the industrial needs, as well as holds a possibility of future innovations, can be marked as a progressive aspect for the company. A flexible ERP ascertains the effective management of data across the various verticals of the organization and creates a reliable business model complementing the existing market demand. While implementing new business models, the digitally enabled ERP systems also check their capability to meet the standardized goals and objectives of the enterprise.
  • Availability of Extension: Business model satisfying the current demands of the market is a good strategy but what if they are not supportive enough to adapt as per the approaching industrial changes? An ERP process modeled with new-age digital transformations can simplify various complex business tasks through extensions. It can significantly broaden the existing business process as per the demand and transform the business digitally by obtaining the desired business outcome.
  • Improved Scalability: If the ERP is scalable it can handle various business transactions irrespective of the size of the enterprise. Digitization of ERP makes it robust and scalable which upgrades the system with the latest features and improved productivity to stay competitive in the market. It also contributes towards the automation of business processes which aids in time consumption, data redundancy, and customer satisfaction.
  • Better Decision Making: With improved communication along the verticals and also with customers, digitally-enabled ERP systems to assist in better decision-making process. Trough the improved and effective collaboration of various verticals to form a centralized data storage capacity, grants the employees to easier access to data which significantly improves their working standard. Meanwhile, benefitted by the up-to-data at the finger-tips, the business management also takes better decisions for the overall betterment of the organization.