How Will ERP and Big Data Revolutionize Your Business?
Enterprise Resource Planning (ERP) systems destroy information silos and allow the different departments to work as a cohesive force. They provide business-critical information to all business stakeholders, including C-suite managers, frontline executives, vendors, distributors, and suppliers, enabling everyone to stay on the same line. Moreover, it eliminates human errors and allows the workforce to focus on other essential issues that require human ingenuity. Big data turns ERP systems into a magic pill as it supplies real-time information about customers, industry, competitors, and the market in general. This information provides companies a solid base to forecast and offers insights on the changing market trends.
This article will focus on how ERP systems and big data will revolutionize your business.
1. Big data-enabled ERP systems will provide you a 360-degree perspective of the business
The market dynamics are ever-changing. If you look at the fashion industry, fads come and go with every passing season. People like wearing sleeveless cotton clothes in summers and put on goggles as a style statement. In contrast, they cover their bodies with coats, jackets, scarves, and gloves during winters. There are many other parameters that companies should look at in their customer base, such as:
- Age
- Gender
- Income
- Education
- Marital Status
- Geography
- Religion/Culture
Big data provides you essential information on the points mentioned above. This information will help you develop insights, know your customers' needs, wants, aspirations, and forecast accurately.
2. Big data-enabled ERP systems will improve your business performance
Every business has the following departments/functions:
- Finance management
- Warehouse/Inventory management
- Human Resource management
- Marketing management
- Sales management
- Formula management
Big data allows you to gain vital data points regarding the above parameters. It lets you monitor the performance of every business function and protects you from unwanted surprises. Moreover, it collects all the business-generated data quickly and stores it safely inside a repository. This repository's access is available to all business stakeholders that possess the required authentication. Big data-enabled ERP systems provide you access to massive information that you can use to create innovative strategies.
3. Big data-enabled ERP systems allow businesses to understand customer behavior
A business cannot run without a vibrant customer base. Customers are the bread and butter for a company, and the more customer data you have, the bigger your customer base will be. Also, if you understand your target segment's behavior, you will be able to serve them better and increase customer loyalty. Research suggests that acquiring new customers is approximately five times more expensive than retaining the existing ones. With customer-centric data in your hand, you will craft better strategies and attract a bigger audience. You will understand customer preferences that will help you serve them better.
4. Big data-enabled ERP systems allow businesses to forecast sales
Gone are the days when a salesperson would go out, knock on the door, ask the customer's name, and give them details about the company's offerings. But over the years, this process has undergone a rapid transformation. Today, big data is helping companies gain customer-centric information even before the salesperson meets the client. It helps companies accurately predict what the customer is most likely to buy and manage their supply and demand requirements. Additionally, companies can escape from overstocking and understocking components and materials, thereby increasing their revenues and decreasing their expenses.
5. Big data-enabled ERP systems allow businesses to hire the right talent
Hiring the right talent is the topmost priority for any company. When you have a creative, intelligent, and hardworking workforce, your company will gain a competitive edge. You will get ahead of other players in the industry and increase your revenues. Big data-enabled ERP systems will provide you essential information about the candidates who have applied for a job in your organization. You will gain a 360-degree perspective about each candidate — their past performance, last drawn salary, professional behavior, achievements, hobbies — that will help you select the right talent for your company.
Conclusion
Big data-enabled ERP systems will enable you to gain a comprehensive understanding of your company, customer base, and the industry that you are operating in. You will make better decisions that will allow you to maximize your revenues and cut your expenses. You will be able to forecast sales and hire top-notch talent for your company. The proverb "Data is the new oil" fits well with the current business scenario as it extracts customer-centric information and provides you the nitty-gritty of the market.
About the Author
Nishant Joshi likes to read and write on technologies that form the bedrock of modern-day and age like Web Apps, machine learning, data science, AI, and robotics. His expertise in content marketing has helped grow countless business opportunities. Nishant works for Sage Software Solutions Pvt. Ltd., a leading provider of CRM and ERP System to small and mid-sized businesses in India.
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