The launch of the iPod in 2001 did many things. It revolutionized the music business, it was Apple’s first real foray into volume-driven consumer business, something it would come to dominate with its iPad and later iPhone products. It also spelled the end of a company that for 21 years was synonymous with portable music—Sony.
The story of Sony, that invented the concept of portable music with its Walkman in 1979 and how it missed the single biggest consumer electronic trend is one that highlights the dangers of silos. To be sure, the iPod was not the first digital music player. It just happened to be the most smartly marketed product. Business case studies have since dissected the reason Sony’s failure to jump onto the digital media bandwagon and the overwhelming assertion is that the silos created within the organization caused the company to miss the bus.
Companies big and small face the real threat of going out of business due to outdated business processes. The main problems they face include:
- Poor systems integration
- Controls mechanism
- Lack of operational insight
A business cannot survive in today’s hyper competitive environment of just-in-time, customized delivery, dynamic economic changes, if it does not build operational efficiencies. A good way to take care of all these problems is to opt for an ERP solution. An ERP helps an organization build business efficiencies that help it compete. Some of the advantages of an ERP system include:
Or, if you like, the demolition of silos. ERP enables a company to combine multiple areas of the business into one program. This allows managers to have access to the overall database that covers client information, orders, invoices and figures. Information is accurately stored and will not get lost across other applications or spreadsheets.
Using ERP means that managers can make considerable reductions in costs relating to inventory and administrative errors. With information available across all levels, communication between departments is easier. As each department is able to access a central database, the cost associated with multiple data centers is reduced, saving both time and money. By increasing organizational efficiency, ERP not only helps decrease operating costs but can also reduce control, inventory costs etc.
ERP can help managers as a strategic planning resource, allowing them to focus on their target market and define business processes and what their aims/objectives are. In terms of day-to-day activities, the software gives quick and easy access for managers to the information required for better decision-making.
ERP facilitates in protecting critical business data, through well-defined roles and access control feature that helps exercise better controls on company operations. By staying on top of the financial situation, there are opportunities to boost organizational profitability and to improve financial controls and risk management.
The creation of a single system allows management to drill down to see how efficient and productive individual employees are, using data from each department with quality reports for analysis and comparisons. As a result, organizational performance together with staff efficiency can be increased.
Meeting regulatory compliance can be tedious unless it is automated. An ERP solution that integrates regulatory compliance and updates them based on changes means you and your team can focus on doing what you do best—running your business.
ERP is becoming ever more pertinent in the business arena as organizations try to stay ahead of their competitors. This business process management software, can help firms in integrating disparate business processes. ERP ensures coherence and avoids duplication, manual processes, errors, discontinuity, and people working at cross purposes, in different parts of the organization. The cumulative positive effect when business processes integrate well is overall superior performance by the organization. So if you want to give your business an efficiency makeover, click here.