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Benefits of implementing an ERP: How to increase productivity and Drive Business Success

An ERP can help to streamline and transform the way you do business, bringing with it many advantages but only one of which is fundamental: increased business success. In comparing businesses using an ERP system with ones who either use an inefficient ERP or who don’t use one at all, a number of clear and consistent advantages emerge.

Businesses using an ERP find that their employees are able to work more productively and on average, generate an additional 1,141$ annual revenue per employee. The analytical capabilities of an ERP mean that the risk of errors is mitigated and that more effective decisions can be made, reducing operational costs by an average of 170$ per employee annually.

Businesses using an ERP find that they are more agile and can get their products to market more quickly, increasing annual returns by an average of 2,628$ per employee. And finally, for a 1000-employee company, an integrated ERP solution could mean an additional 3.8M$ in annual revenue.

Furthermore, when comparing companies who have an integrated ERP system to ones that don’t, a number of further advantages emerge. Unplanned application downtime can be reduced by up to 98%. Moving to the cloud can maximize the value of your ERP and increase application performance from 10-200%. The resulting increase in adoption and usage from having a fully integrated ERP adds value per employee of about 220$. Extending your ERP to have mobile capabilities can increase productivity for those who use it by 17%. Lastly, revenue can be increased by 10% when an ERP is fully integrated with other apps.

All good ERP’s can do a lot to help drive business success, but, when it comes to ERP systems, there are several advantages to implementing the latest generation. The latest ERP’s can be deployed more rapidly, which can potentially reduce deployment costs by up to 70%. The intuitive, easy-to-use interfaces of modern ERP’s, that look and feel more like consumer applications, can reduce training time and costs by up to 80%. The interconnectivity with other productivity apps facilitated by latest gen ERP, gives an advantage to businesses by reducing operational costs by up to 13%.

A properly implemented ERP system, delivered on-time, on-budget and to the customer’s specific requirements, can be a very effective driver of productivity and efficiency within a business, providing managers with more control and visibility than they could ever possibly achieve without one, and, ultimately, increasing the success of a business.

Click below to access all figures and statistics taken from IDC research.

Click to view Infographics

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About the Author

Huw James

Huw James

Huw James was born in Brussels, Belgium, and grew up there. He takes a strong interest in philosophy, music, cinematography and politics. After finishing high school, he studied philosophy in Holland and following that he studied music in London. He has been working as a part-time Digital Marketing Assistant for sa.global for just over 6 months now, and is studying a postgraduate degree at the Digital Marketing Institute in the same subject concurrently.

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