Knowledge sharing

Why should ERP be the compulsory system of businesses?

May 28, 2021

ERP is enterprise resource planning software, but how is it better than other solutions? What special features does it have that make it a distinct competitor in the software market? This article will tell you why you should apply ERP in your business.

1. Working connection improvement

Improve working connection

As you know, a centralized database makes ERP unique. With this data source, departments are working on a single source of truth. This significantly reduces errors and unnecessary risks.

Moreover, the connection requires departments in a process chain to join together at the right time, reducing stagnation, because if any, it will affect the following operations. In addition, there will be no more business owners having to merge information between different departments or sources.

2. Labor productivity Improvement

The work of employees in enterprises is not only focused on their expertise, but they must connect to work with many stakeholders. But each department using a separate system creates barriers for connection, for example, the accounting department needs to control usage, equipment inventory must use a parallel tracking system with the IT department because there is no shared system, employees have to re-enter the same content such as device code, allocation, withdrawal… This takes a lot of time for both parties, and employee productivity will be governed to deal with these matters.

Therefore, a management system like ERP is the first choice to solve existing manual problems, and decentralized departments can quickly access and use enterprise data when needed. This is a system that closely connects departments to increase work productivity.

Besides, enterprises of large scale can manage the situation of human resources with quality work or not on the same system to promptly change the management strategy.

3. Digital working environment

Digital working environment

Don’t let your business just grow in size, but not the way it works. Because when it is determined that the business needs to go a long way and develop further, it is necessary to change the working environment culture. This will increase the competitiveness of the business image and the human resources to work more professionally to keep up with the 4.0 era.

Compared to a manual work environment, implementing ERP will change the way employees work because they are required to use the system to store, find information, make reports, and many other activities. The system helps businesses to be completely digitized, taking advantage of more resources to solve outstanding problems of the department.

4. Outstanding business growth

Tăng trưởng kinh doanh vượt bậc

Besides, ERP will be a lever to help promote the business situation of enterprises. A typical example of restructuring with ERP is PNJ – an organization that has successfully applied digital restructuring with breakthrough business growth figures. Specifically, PNJ implemented the system in 2013, and after five years, sales increased by 190%, profit after tax was at 630%. Also, they have reduced the employee turnover rate to 1-3 %/year. Why can they do that? You can imagine if PNJ is using discrete management systems, how many employees will they spend to be able to manage well and achieve success?

From the above four factors, digital transformation with ERP plays the main role in the revenue, resources, and development of small and medium-sized enterprises.

So businesses have seen the reasons why they should apply ERP in overall corporate governance. And remember, the digital age changes very quickly, so businesses need to keep up with the trend to optimize business, human resources, and retain customers to develop sustainably.