Today, business digitisation is at the top of CEO and corporate board strategic plans.
As the concepts of the 4th Industrial Revolution and the need for more remote and online interactions increase, businesses are under pressure to evolve.
It is the data that is created throughout the digital transformation process and how it is analysed, however, that will ultimately revolutionise companies.
This data can be used to make decisions.
Prioritising the collection and analysis of data is, thus, imperative.
An ERP (Enterprise Resource Planning) system is an effective business management tool that quickly and easily provides a consolidated and comprehensive overview of the business. As such, ERPs are the backbone of digital transformation.
Not only will company leaders have a firm grip on operations, but they can also identify gaps in the business where exponential value could be added.
Leaders who can use data to support their thought processes, make more confident decisions and can position their organisations for long-term success.
So, exactly what does business digitisation entail?
Some of the available technologies include:
The Internet of Things (IoT)
Artificial Intelligence
Advanced manufacturing
Data Analytics
Mobile solutions
Cloud computing
Demand chains
With different departments using any of these varying technologies, silos are created. To implement an ERP system effectively, data from all parts of the company will need to be digitised and taken out of silos.
ERP systems are fundamentally business intelligence and machine learning platforms that are applied across product development, supply chain, manufacturing and service departments. This integrates the information in real-time, removing the silo effect and providing decision-makers with clear insights into their operations.
What are the benefits of business digitisation with an ERP system?
The overall benefits of using ERP as a support to business digitisation include:
Rapid decision support
Improved quality
Differentiated products
Innovative business models
Here we go into a little more detail:
Data overview:
Beyond having accurate real-time information (which also provides stricter asset management), the access to quality, interpretive data has several value-adding applications.
Decisions can be communicated and executed instantly across the entire network, for instance. This can foster internal and external collaboration.
Greater, more efficient controls and system usage will improve the business performance by increasing cost-efficiency and service performance, too.
Companies can stay ahead of the technology curve by overhauling their old processes. Many repetitive tasks can be eliminated. This will, in turn, also streamline and automate many business functions, enhancing operational efficiency.
Supply chain:
An ERP can seamlessly integrate production and consumption processes.
This improves traceability across the supply chain and manages warehouse inventory, equipment and jobs in real-time.
Data from machines and devices can be collected automatically and Overall Equipment Effectiveness can be measured accurately.
Moreover, it enables greater flexibility, reactivity and product individualisation. New products and services can be developed and the environment can be better supported by optimising resource consumption.
Customer experience:
All the above considered, one can see how digitisation can improve customer service delivery. Today’s technologies provide an always-on global customer experience. Queries can be responded to automatically, on any platform 24/7. Digital self-service agents such as “bots” can provide insights and answer consumer questions about price, stock, and order status. Service agents and operations can be directly alerted.
This increased responsiveness has a positive effect on the ability of the business to compete, especially on a national or global level.
Why is it necessary to implement ERP into a business?
Given the multitude of benefits that address some of the most core and critical aspects of improving a company’s bottom line, adopting an ERP is vital and inevitable.
Why are so few decision-makers making the move to business digitisation?
Many reports from research firms, such as Emerald Insights, Deloitte as well as the World Economic Forum have found common difficulties that business owners should address.
Foremost being the overwhelming choices to be made upon the first implementation.
At Intuitive IT Solutions, detailed consultations and discussions clear a roadmap and eliminate much of the complexity of determining the best solutions.
Intuitive IT Solutions understands the intricacies of ERP design. After all, transferring your processes to an ERP is a long-term project. It costs money and time. An organisation must be structured so that it can adapt at scale. This kind of widespread organisational change is particularly expensive and the business will need to fee up investment that will only pay off in years to come.
This is a hard sell, especially if there isn’t enough buy-in from the stakeholders that will be directly affected by the roll-out of a new system.
We believe in creating a collaborative solution, where certain key decision-makers take the lead and work together with Intuitive It Solutions.
As an example, the CEO could drive the acquisition of investment and allocate it accordingly.
Successful adoption of an ERP system requires a strategic vision and human resources to help guide the efforts. Many executives struggle to develop an effective strategy, especially in today’s rapidly changing markets.
Roles, responsibilities and execution gaps should form part of the business digitisation strategy.
This might mean that the CEO will be required to leverage the skills of people from different departments so that they can dedicate their time to the digital transformation program. The implications are big, as top performers that are important to short term goals will be focusing on a project that has more long term outcomes instead.
There are easy ways to overcome these difficulties. Realistic financial models must be developed and clear priorities set early in the process. Increased complexity, rapid technology evolution, change in customer preferences and legal requirements must all be taken into account when such a strategy is developed.
ERP implementation, by its very function, is a change management program and the business will experience the same obstacles as in any change management program.
Barriers will be different for every company, though, and will need individual solutions.
It is undeniable that the physical and digital worlds are increasingly converging. It is becoming more necessary to look at ways to do this and design business functions alongside these advances. It will require a new perspective – one that places a different emphasis on business initiatives as well as coming to terms with how people and machines can work together.
Intuitive IT Solutions has the experience and expertise to work with you through the planning, the challenges and the delivery of this incredibly powerful instrument that will catapult your company and will ultimately exponentially improve how every department communicates.
