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9 Examples of Enterprise Software (ERP) Reducing Operating Costs

How does an ERP system reduce costs for any business? Why is it so important today, and can I really see my ROI? These are some quality questions for any business owner or decision maker to ask, when they are considering cutting costs.

When an entrepreneur is considering efficiency within an organization, an ERP system should be of high consideration. Enterprise Resource Planning (ERP) solutions have been helping companies run their back office for over 40+ years, so let’s look at the pros of this solution!

Here are 9 examples of how an ERP solution can help your internal operations: 

1) It is an Integrated Solution (Integration brings together people and informational flows within the company! This covers a wide variety of activities like – manufacturing, management, accounting, logistics, CRM, inventory, e-commerce. This maintains flexibility for all users with customization tools available, and being oriented towards workflows & business processes. The best part about this? It is completely SCALABLE for the company’s growth without missing a beat!)

2) ERP’s automate and standardize operational processes. (Disorganized & manual operations are not effective, but an automation of business processing allows the company to perform its best. Minimal effort is done with importing thousands of products or clients, and details that happen automatically from one document to another. Commercial & company policies are also created and maintained within the system!)

3) Scalability! (Having a business solution within an ERP system, allows for the company’s infrastructure to grow with the company for years to come! Sometimes the pain of company growth, can stop businesses FROM growing!)

4) Tracks costs in detail. (The ERP system allows you to set spending budgets and watch actual costs. Flexibility to structure the budgets with various considerations like: departments, geographic location, customers, etc. This also allows the business to forecast budgets that may not have been an option prior to the ERP)

5) Optimize stock in Inventory (If a business has inventory for the company, having an ERP system helps predict the future demand while calculating quantity needed for estimated sales. The system also helps avoid risk of excess stock, while managing multiple locations & warehouses.)

6) Manage warehouses more effectively (An ERP solution allows access to real time information about any stock/inventory movements & changes. Customer orders are automatically transmitted from an ERP to the warehouse, helping to manage the business) 

7) Improves the sales process (The CRM system is designed for customer & prospects relationship management. Having all of the data in the same system ensures employees spending less time looking between systems, no matter which department they belong to: sales, marketing, service support, project management, etc.)

8) Choose an online shop integrated with your ERP system (An effective way to reduce costs is by implementing an online shop! This is a much lower comparison to a physical store, in terms of rent, taxes, maintenance, and wages. This store integrates with an ERP, meaning, all information about customers, products, inventory or prices is automatically transmitted!)

9) Improves the analysis and reporting process (Choosing a Business Intelligence System integrated with an ERP software gives you the possibility to create advance analysis even if you don’t have technical skills. The forecasting allows you to see how your company’s costs will evolve based on historical data.) 

Start Simple with Business Simplification

GrowYour Business (1)Business simplification is increasingly recognized as a strategic requirement for companies seeking to innovate and succeed in today’s complex business environment. As your business grows, the bolted-together systems and processes that worked when your company was smaller won’t scale sufficiently to support new customers, employees, product lines, and service offerings.Equally important, there’s a natural tendency for companies to create more complex processes over time – for example, to accommodate new customer demands or to work around disconnected systems. And as they build up, these complex processes create inefficiencies, drive up costs, and make your business less agile.

But if barriers keep slowing down your simplification efforts, you’re not alone. As noted in a recent Knowledge@Wharton paper, “Business Simplification 2015: The Unmet Strategic Imperative,” companies battle everything from a resistant culture (often due to fear that simplification will lead to lost jobs) to managers who lack the time to implement new systems, processes, and policies.

But sometimes simplification initiatives stall because they fail to start simple. Sometimes the best way to get the ball rolling is to focus on one or two processes – for example, a decision making and an approval process – and empowering the people closest to those processes to simplify their daily work.

The project should have clear-cut goals and incentives tied to performance. This approach to simplification changes people and culture from the bottom up, paving the way for acceptance of larger initiatives that require a more top-down, technology-driven approach. Such projects still need to have the support of top management and be tied to strategic initiatives, of course – but the goal is to build momentum around the goals and benefits of business simplification. People can experience first-hand that it’s really just adopting a simpler way of working that reflects proven business practices. And they can realize the benefits directly, right away.

So where do you see opportunities to start simple with simplification within your business?


Grow Your Business Faster by Running on a Single System

GrowYour BusinessERPs: Grow Your Business Faster by Running on a Single System

In today’s business climate it is more important than ever to streamline operations and utilize innovation to stay current and competitive. This is where ERP comes into play. Think enterprise resource planning (ERP) solutions are just for big companies? Think again.

According to Aberdeen, 96% of best-in-class growing businesses – the top 20% of performers – have implemented ERP solution. That’s a huge percentage – enough to consider ERP systems mission critical to the success of high-growth small and midsize companies.

And when you think about it, ERPs geared for SMEs make perfect sense. You have the same kinds of processes to support as large firms: procurement and logistics, manufacturing, customer-facing processes like sales and support, finance, HR, and more. You can either manage all of this with systems that can’t interact with one another, can’t track business processes, that can’t generate the accurate data you need to understand business performance – or you can simplify with an ERP.

Simplify Work – and Scale Easier – with a Single Business System

ERPs act as single business systems that centralize core business data and support core operations, processes, reporting, and more. They help organizations of all sizes to face their challenges and as a single business system, they support visibility, efficiency, and decision-making. At the same time, they make work faster and easier with automation, seamlessly integrated processes, and easy access to accurate, trusted data.

And the benefits, based on surveys of executives at growing businesses with ERPs, are significant and directly related to business growth. For example, they’re seeing:

11% reductions in operational costs

10% increases in profitability in just two years

A 48% likelihood that they have real-time visibility into the status of all processes (compared to 6% without an ERP)

A four-fold increase in their ability to forecast and plan for demand

633% greater likelihood that they can share data with suppliers, customers, resellers, and regulatory bodies

77% likelihood that they can standardize back-office processes (compared to 22% without an ERP)

In addition, best-in-class growing businesses reportedly can easily find and use the data they need, no matter where they are, to make fast, agile decisions; Aberdeen research shows that ERPs reduce the time it takes to make decisions by 36%! Why? Because the processes ERPs support work from and contribute to a single source of truth to support visibility, efficiency, and decision-making.

Have you thought about running your business on an ERP? Or are you still using point or stand-alone solutions for finance, customer management, HR, and other core operational areas?

I guess the real question is, given the competitive edge that ERPs provide – and their ability to make work and life easier in a small or midsize business – can you afford not to move to an ERP?



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“My Business Is Small – So Why Worry About Running Simple?”

creativity is Intelligence having fun“My business is small – so why should I worry about simplifying my business?” I hear this a lot from executives at small and even midsize companies. Most are focused on growth, growth, growth – as they should be, especially as competition intensifies. But many growing businesses eventually hit a wall of operational constraints that limit their ability to deliver goods and services, or branch out into new markets. They simply can’t grow anymore because their business is running on a patchwork of cobbled-together processes, organizational structures, and IT systems that can’t scale and adapt. Sound familiar?

It’s easy to think that business simplification is something you worry about after your business gets big enough to be complicated. Big companies are notoriously bogged down with overly cumbersome processes and locked into fragmented legacy systems and inflexible network architectures. But there’s never been a better time for leaders of SMEs to think about business simplification. Run simple, and you can avoid this costly, frustrating scenario entirely – and keep the doors of innovation and growth open now and in the future. 

From an IT perspective, this means saying goodbye to deploying stand-alone apps and patching your infrastructure here and there to meet immediate needs. Because over time, it will become overly complex, rigid, and less effective. And it means building a flexible, scalable operational platform that can deliver on your corporate growth strategy.With the right platform, you can pursue growth while remaining resilient, adapting to market changes swiftly. So as your business grows – and you need to outsource non-core operations, support new business models, sell across multiple channels, and go global (with all of the regulatory, linguistic, currency and other complications that brings) – you can do so with ease.

That’s the power of running simple.

And according to a Knowledge@Wharton paper, the benefits of business simplification are huge: better customer experiences and retention, higher profits, lower costs, greater employee engagement and retention, increased operational efficiency…the list goes on. They can also react faster to market changes and customer needs, lighten employee workloads, and accelerate time-to-innovation and time-to-market.
SAP solutions for SMEs make it easy for you to run simple. Easy to install and use, they are tailored to your specific business needs so they’ll work for you now – and as you grow.
Check out our solutions at And to learn more about simplification as a business enabler, check out the complete Knowledge@Wharton paper here.

Chart a Better Path to Sustainable Growth by Running Simple



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