As your company grows, you have to put more effort to streamline your business operations for sustaining growth. You may start with spreadsheets and accounting software. But once the organization grows, it is hard to coordinate different functions such as accounting, purchasing, sales, HR, customer relations, and the supply chain on multiple systems.

Let’s dive into the five major ways disparate systems hurt your business productivity and efficiency.

1. Losing time with manual processes

Having disparate systems in an organization leads to a waste of time and money. Transferring data from one system to another is a time-consuming, manual task that diverts your team from focusing on other high-value tasks. Also, every time a new version of the software is purchased, the IT department needs to make sure that the new version works well with the other apps with which it needs to interact.

2. Data entry makes your data vulnerable to loss

Your business data is being stored, collected, and maintained by different teams. Having the same data in two systems may lead to inconsistencies. Imagine a customer’s order being shipped to the wrong address because the shipping software was not in sync with the order entry system. These mistakes can hurt the business’s reputation and can even lead to financial loss.

It is very difficult to achieve data consistency and ensure data protection when you are running a business on disparate systems. There are too many opportunities for human error which lead to decreased productivity and efficiency.

3. Slow access to information

Getting an accurate view of the company’s operations can be a challenging task when you have multiple applications. When data is fragmented and scattered across the organization, it leads to a time-consuming process to create reports and search for the data needed.

Reporting capability is one of the frequent complaints when there is no single business management system available in the organization. Making decisions based on old data can affect productivity and lead to delayed processes.

4. The IT landscape is complex and expensive to manage

Whether you are paying a monthly subscription or you have purchased perpetual licenses for disparate systems, the cost of purchase and maintenance of these software systems is high as compared to comprehensive, end-to-end software.

Also, when these software systems are deployed on-premise, it becomes important to have a team of IT personnel to manage and maintain the systems. This additional cost adds more to the overall budget.

5. Training employees on multiple systems is slow and challenging

Onboarding employees and training them takes time. The time taken in this process can increase by tenfold when the network systems and software are complex. Getting used to the new user interface, adding data to it, and integrating it with other systems manually can be a challenge for employees.

Also Read Understanding ERP Modules and Their Business Benefits

Enterprise Resource Planning software is an integrated suite of business management software that binds every function of the company into one system and improves workflow. Investing in multiple tools and managing disparate systems and operations is expensive and inefficient for manufacturers. ERP software boosts collaboration between departments, promotes automation of tasks, and leads to a systematic way of working.

5 Reasons Why Manufacturers Should Invest In Cloud ERP

Integrated business management software such as cloud ERP is transforming modern businesses. It enables them to transcend growing market competition and encourages them to achieve the desired milestones.

Cloud ERP is Enterprise Resource Planning software that is hosted and managed offsite in the cloud by the vendor. Cloud enables real-time monitoring, editing, and managing of business data while providing data security and lower operating costs.

Consolidating systems on a cloud platform may sound intimidating, but actually, it is very easily achievable. Many modern businesses are switching to cloud ERP because of these reasons:

1. Reduced costs

Most organizations think that spending on IT personnel, hardware, software, and regular maintenance is quite normal. However, with a cloud platform, they can save a great deal of money in these areas. Cloud ERP eliminates much of these expenses. Every piece of business data is stored in virtual data centers and software gets updated automatically. You don’t have to spend on every software update or on the cost of extensive IT personnel.

2. Increased data integrity

Well-integrated Cloud ERP ties all your data together. A crucial aspect of using cloud software is data integrity, which prevents unauthorized access to data. Unless you are given the authority, it is not possible to delete or modify any part of the data.

3. Streamlined processes

Cloud ERP systems are integrated and fully embedded with business modules that are the most suitable for you. While disparate systems can create an opportunity for human errors and untimely decisions, integrated ERP software ensures automation of tasks and no having to enter data time and again. All business functions are synced together and it lets you check and monitor business activities on one screen.

4. Improved business insight

Cloud ERP delivers valuable insights from big data. It supports advanced analytical solutions that can rapidly process data.

ERP supports forecasting and predicting what your business needs are by analyzing past transactions. Forecasting plays a significant role in supporting future growth.

5. Minimized maintenance

Since the software is hosted and maintained by the vendor, businesses don’t have to worry about software maintenance. Cloud ERP vendors offer their customers 24/7 maintenance and support to handle their problems immediately.

Also Read Cloud ERP vs. On-Premise ERP

Conclusion

Consolidating all software systems into one platform can bring multiple benefits to the organization. From streamlining processes to improving business insight and the decision-making process, an integrated system not only improves productivity but also helps retain employees and customers.