A recent whitepaper by the folks at SAP outlined a variety of mistakes made by companies in challenging economic times. While the whitepaper is a thinly-veiled prod to urge readers to invest in an enterprise resource planning (ERP) system such as their own, it illustrates management errors and how investing in an ERP system during a recession results in better transparency and efficiency, fostering faster growth when the economy gets back on track.
The document outlines six mistakes being made by businesses. The first is “taking existing customers for granted.” Existing clients who already trust and appreciate a business’s product are the lifeblood of the business, especially when everyone else is hesitant to buy anything. Customer relationship management is crucial because staying “in tune” with customer needs is impossible without staying “in touch” with the customer. Another mistake is “failing to capitalize on market opportunities.” A company will miss out during times of economic growth if they do not recognize the need to introduce a new product and use tools to project the estimated revenues and costs associated with the product.
The paper identifies “allowing operational efficiencies” and “driving the wrong behavior in the organization” as two more mistakes being made that can be solved by an ERP product. Administrative tasks can take a fraction of the time with an ERP system. As wasted time costs companies money, time efficiency can help businesses cut costs. Furthermore, metrics that are easily visible within the system can prompt managers to create the most effective sales incentives.
Perhaps the two most important aspects of the paper are the mistakes of “letting problems go undiagnosed and uncorrected” and “failing to offer transparency to stakeholders.” By tracking all aspects of the company’s operations, decision-makers can find and eliminate issues and make more informed decisions in a timely manner.
An effective ERP system can solve all of these problems.
GraVoc Associates, Inc, located near Boston in Peabody, MA, is a Microsoft Gold Certified partner with operations in the practices of information systems, professional services, and information technology. The information systems practice, among other things, helps customers choose the correct ERP system that fits their needs and enhances their operational efficiency. Last year, GraVoc climbed from 15th to 2nd in New England among Microsoft Business Solutions (Microsoft Dynamics) resellers. For more information about GraVoc’s custom utilities that can work hand-in-hand with ERP systems to create more transparency within your organization, please visit gravocsoftware.com. For more information regarding the information systems practice in general, please visit GraVoc.com.
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We are excited to share that our Director of Software Solutions, David Laster, has been selected to present at DynamicsCon – a free learning experience for 11,000+ Microsoft Business Application users and professionals!