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Are ERP Systems Worth It?
Implementing a new system for your business can be a big commitment. There’s training, change management, new practices, implementation, and of course valuable time and resources to be invested during the process. So it’s natural to wonder, are ERP benefits worth the investment?
In this blog, we’ll dive into the main ERP benefits available for your business and evaluate whether or not an ERP system might be a good fit for you.
What Are The Primary Business Benefits of an ERP System
These are the top three benefits of using ERP:
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Improved Productivity:
One of the most evident and significant ERP benefits derives from the operational efficiency that the system provides.However, quantifying the exact ROI of ERP can often be challenging.
That is because some of the operational benefits it provides are straightforward and measurable such as the time and human resources it saves by automating processes. While others are less visible and more difficult to quantify like the time and resources it saves by reducing costly errors that occur with manual, repetitive tasks.
But despite the complexity of measuring its benefits, there is a substantial amount of data showing that ERPs do in fact deliver a vast amount of operational efficiency.
For example, a Panorama Paper highlights that organizations that use ERP see as much as 78% increased productivity with 66% of organizations saying their ERP improved their operational efficiency.
2. Data Security
One benefit of using ERP with tremendous ROI that is often overlooked is its enhanced security capabilities. Cybercrimes are estimated to cost a staggering $10.5 trillion annually. If your business is subjected to cybercrime, the costs could quickly escalate which could set your enterprise back financially.
ERPs centralize business data with advanced encryption which reduces the risk of breaches, keeping your business safe from bad actors.
3. Saves money
One of the most obvious ERP benefits is the cost savings it provides to businesses, allowing the investment to be justified. ERPs do this by automating processes that take up time and resources as well as minimizing errors.
A study highlighted that manufacturing companies using ERP systems experienced a 23% reduction in operational costs and a 22% decrease in administrative costs.
Are ERP Systems Worth It for You?
The benefit of using ERP is indisputable. By using resource enterprise systems, organizations can save time and money, as well as reduce their risk of error. ERPs are a no-brainer solution, even for SMBs and startups.
When it comes to ERP software in the United States, there’s no better option than Xledger. Our online ERP software is a category leader that specializes in automating accounting processes, streamlining financial operations, and connecting all aspects of a business in one place.
If you’re ready to implement ERP in your business, schedule a demo today with our team of experts. From there, our team will guide you every step of the way.
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