In this article, Alan Salton, president of the USA, walks us through some of the most important things to consider when considering the value creation of ERP. "Choosing the right ERP system is critical to creating value from available resources - people, materials, capabilities, technology, and knowledge," says Salton.
1. Information value
No two companies use data in the same way, but they both recognize, perhaps the hard way, that data utilization without strategy is not utilization at all.
CRM allows users to understand and act on information, no matter where it is generated.
ERP provides structure and conditions of use for the collected data, providing users with fertile ground for actionable intelligence.
Customer relationship management in abas ERP is a good example, Salton said.
"CRM is a fully integrated sales tool that combines information from existing customers and prospects on a single workbench. It allows users to make sense of information and act on it, regardless of where it is generated."
With ERP-driven CRM, businesses can treat existing customers like family, drive interactions, nurture leads, and develop smarter messaging, all of which are valuable for sustainable success.
2. Conversion value
Technology has enabled significant changes in enterprise processes and business models, which in itself requires a shift in our understanding of the role of a product or service provider in the marketplace.
Subscription models, for example, have reversed the traditional emphasis on customer acquisition over retention.
As the industry moves rapidly and synchronously, the ability to keep pace becomes even more valuable.
"With subscription pricing, it's more important to get new customers than to keep existing ones," Salton said. "Strengthening retention enhances the predictability of revenue streams and supply chains."
This is equally important for businesses operating in or entering highly concentrated markets. As the industry moves rapidly and synchronously, the ability to keep pace becomes even more valuable.
Whether companies are seeking to reshape their established business legacy for a new era or make a name for themselves when they break ground, flexible ERP systems enable them to ride the waves of change without being swept away by the tide. With product advancements, diversity of supply, and complexity of services, ERP systems are like a network of endlessly configurable digital pipes that support uninterrupted operational excellence in the face of disruption.
3. Organizational value
As leaders reimagine their businesses to compete in the 21st-century marketplace, they will always find it necessary to restructure their operations and resources.
Again, let's take the subscription model as an example.
"Under many traditional supply and demand models, demand forecasting is essential and needs to be tracked precisely," Salton said. "Without them, companies risk missing or exceeding their demand targets."
However, under the subscription model, demand is easier to track and requires little guesswork.
However, after such a transformation, the tissue is equally partially excised and replaced. Enterprises in transformation still have to build subscription workflows - direct-to-consumer logistics channels, etc. - that traditional models never needed before they reaped the benefits of innovative models.
Companies may restructure to improve efficiency, break down departmental silos, or open operational bottlenecks
This represents one of many potential changes and one of many potential processes affected by that change. Companies may also further restructure to improve efficiency, break departmental silos, or open operational bottlenecks.
All of these value-added opportunities require ERP systems with business process management capabilities that allow users to do the following:
Delve into the discrete tasks that make up a separate workflow.
Evaluate the steps in sequence.
Rearrange, add, or remove parts accordingly.
Create automatic employee notifications or process triggers.
Maintain standardization with team-accessible workflow mappings.
Visualize operations for real-time intelligence.