The Highs And Lows of ERP

If we were to have a contest to see how long we could talk to you about the benefits of a ERP system, we’d probably keep you here all night! But as a business owner, it's not only natural but wise of you to also wonder...what are the downfalls?

So we’ll be honest! There are downfalls to every cloud based ERP system such as NetSuite but it’s our belief that the benefits far outweigh the bad!

Read on to find out some of our all time favorite things about ERP systems such as NetSuite and how they’re able to not only benefit your business but propel it forward and then (because we want you to make a fully comprehensive decision) we’re also sharing our top downfalls of an ERP system!

Benefits of ERP

Cost Savings

This benefit is coming in at the top of our list for benefits of ERP because when it comes down to it, we’re all in business to effectively give money so that we can make money! It’s what keeps our families fed and the world spinning. So it comes as no shock that the #1 priority on the mind of business owners is that they’re able to effectively manage their money so that they’re not only spending the perfect amount to keep operations running but they’re also not ignorantly wasting it! The automation provided within ERP systems is the perfect way to help cancel out the errors of human mistakes while also increasing productivity. This helps business owners bring on the absolutely necessary amount of employees as they continue to grow rather than hemorrhaging funds to keep up with different demands.

Reporting/Analytics

In order to understand how your business is currently working and envision how to dream beyond it, you need a lot of data! And within an ERP, there is no place you can get more of it! ERP systems have the capability that allows you to track KPIs as well as stay on top of any analytic or report that you can think of. With data that you didn’t even know you needed to collect, ERP’s give you an in-depth look at your business so that you always have the tools you need to make the best decision for your business at the drop of a hat!

Additionally, with ERP’s tapping into information from every department within your business, it’s system is able to become something like your right hand business coach! It’s keen intelligence and insight into the everyday routines of your business will provide you with it’s own detection of key trends and insights into your business that you may not have seen. Just like the reporting/analytics, this will also help you make better decisions when it comes to your business!

Regulatory Compliance & Data Security

With so much constantly changing when it comes to financial reporting standards or government and industry-specific regulations, it can be hard to rest assured that you’re always staying on top of the game but utilizing an ERP can give you the peace of mind you’ve been looking for as these systems can become your gateway to making sure you stay compliant in all that you do!

With its robust abilities to track everything happening within your business (as well as the entire lifecycle of a transaction), ERP systems have the ability to keep an audit trail with reports that are kept up-to-date and in compliance with standards and regulations.

Risk Management

Running a business also gives you the worries of managing any possible risk open areas within your business but with ERP systems, you’re able to breathe a bigger sigh of relief as the technology built within ERPs help to reduce these holes!

By effectively utilizing access controls and having clearly outlined workflows that are tasked with approval requirements, within your ERP system you can strengthen the security of your business and take control of risk management. Additionally, having such an all encompassing view of your business, as stated before, can give your business the exact advantage it’s looking for when it comes to identifying any issues that could cause problems later down the road.

Finally, by having a Cloud Based ERP such as NetSuite, it’s important to mention that by default, you’re receiving industry leading security provisions and protocols that helps ensure that your business is not privy to attacks. And with ERPs housing the entirety of your businesses information and documentation, there’s a reason keeping it secure is of the utmost importance!

Workflow Visibility

Because ERP systems offer workflows that can all be viewed in one place, employees from all different departments are able to log into the system at any part of the process/flow and see current status as well as how things are operating within other departments. This sort of visibility is vital to saving the time of managing leaders within your business so that they’re able to see what’s working well and what isn't; but it’s also a time saver because with just one click managers can get status updates on everything they need without having to send an email or make a phone call!

Disadvantages of ERP Systems

System cost

In the beginning, ERP systems had a reputation for not only being a huge upfront cost to attain but they also were notorious for being a hassle financially to implement and maintain which often left the option of ERPs open only to large companies. But times have changed! It’s still true, yes, that ERPs do ask for a substantial upfront investment of your time and money but because of systems like SaaS that have paved the way for charging recurring fees and making more options available for small and midsize companies, ERPs have become accessible to all businesses in need of it.

Training

The beauty of an ERP system is that it becomes a part of your business family. But just like your normal family, and bringing home a new baby, it takes some time to get used to! You have to get each employee accustomed to it which means that most (if not all) of your employees will need to dedicate some time towards training.

And like all new things, it may be hard to get employees fully on board with utilizing the system continually throughout their day but as long as you’re a role model of consistency for them and make the transition as seamless as possible, there’s no reason that your business should not adapt. Additionally, with systems like NetSuite prioritizing their newer systems to be “more intuitive and user-friendly”* this can help you reduce the time you need for training and increase how quickly your business can adapt to the system.

It's Not A “Fix-All” To Your Problems

This is the #1 downfall that we hear customers of ERP systems reporting which is why it’s important to note that this “downfall” isn’t necessarily one of the ERP.

If the processes of your business are not currently efficient, if there are holes within the structure of your business that are prone to errors, or if you’re not currently implementing policies to propel your business forward this is not a reason to bring on an ERP as it won’t be the answer to these problems.

While it may help you in documenting the issues you’re having as well as suggesting ways that may elevate your business, doing the hard but necessary work of addressing these issues yourself will not only greatly increase the success of your business but also the success of utilizing an ERP.

Do you still have questions about ERPs and how they can help your business? Leave them down below!

*https://www.netsuite.com/portal/resource/articles/erp/what-is-erp.shtml