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How ERP system plays an important role in digital transformation.

How ERP system plays an important role in digital transformation.

If you don’t move forward, sooner or later you start going backwards, a phrase that is true in the current business scenario.

In this era of constantly evolving technology and business dynamics, one doesn’t have enough time and knack to wait for the right opportunity. If an organization doesn’t take a big leap forward and walk sideways with the shifting tides of innovation and technology, the obvious outcome is to be left behind. Technologies like Artificial Intelligence, Blockchain, and Internet of Things, etc., are pushing us to the edge and have become an integral part of every companies’ future goals.

Many organizations are taking part in the digital transformation revolution. Digital transformation elicits varying definitions. To be precise, it can be described as a growing process in which enterprises leverage digital technologies to drive disruptive positive changes and experience for their customers and markets. A survey found that digital transformation is essential for a business to succeed. The digital change is clear: “Adopt new technologies effectively or face competitive obsolescence.” It is certain that digital transformation is becoming progressively significant for many business leaders – especially CIOs – who view the movement as an essential requirement for organizational growth.

Digital transformation can be explained in various ways, but the crux of the idea is that new technology can not only improve the traditional method, but it can indeed transform the method of doing things and ensure better productivity by implementing new processes. The introduction of digital technology is not only about internal business competencies, but it is also about enhancing the customer experience by offering them the latest and up-to-date technologies. The new technology doesn’t mean automatic attrition for humans – sometimes it means that skill adjustment is necessary. For e.g. From going paperless to something that is cloud-based.

Or to be more precise, cloud-based systems like ERP allocates data across all departments in real-time, and remotely, which can primarily revise the way supply chain, billing and customer service processes work. By now, the idea of going paperless, and concentrating on applying digital technology to deeper aspects of company operations seems superficial, but how does this affect the ERP system?

After adopting digital transformation, organizations are noticing growth in the areas of understanding client needs, managing crucial tasks, and final decision making, but before we reach to the conclusion of what it means for ERP software, we need to understand what digital transformation is doing to the organizational strategy and how companies are managing this data.

If we talk from a marketing point of view, digital transformation helps companies understand and target customer pain-points. It also helps to gather exact information about the customer segments and maintain and evaluate the data in a central database available from anywhere in the world. Digital transformation has allowed the integration of business process in a centralized ERP platform, enabling real-time management of supply chain and coordinating things like ordering of materials, production, billing, delivery, etc. Digital transformation not only employees but also customer engagement by streamlining various workflow and optimizing company strategy by adopting more advanced tools and processes.

As the emphasis of digital transformation increases organizational ability, through an abundance of options from mobile applications to cloud-based solutions, ERP platforms are ideally located to improve business operations and interdepartmental communication. Using an ERP Solution for crucial daily tasks like CRM, human resource management, accounting, project management, supply chain management, etc. streamlines business processes. For example, an integrated ERP system allows you to digitize records from customer information to bills of material to invoicing, it also improves the employee workflow.

Using an ERP system can eliminate miscommunication, redundancy, and downtime thus improving the productivity and process of an organization. With new technologies emerging, enabling capabilities and streamlining workflow, digital transformation is essential for every business to remain competitive in this ever-changing and developing scenario.

Author: Prasanna Shindikar