How ERP software enables business innovation

Innovation is a key to success for many organisations in today’s ever-changing climate. Businesses are constantly looking for opportunities to gain competitive advantage or increase business growth. One way to achieve this and encourage business innovation is implementing an Enterprise Resource Planning (ERP) software, otherwise known as business management software.

ERP software is a powerful tool that can be used to manage different aspects of an organisation’s operations, such as finance, supply chain, and customer relationship management (CRM). It provides a centralised system that integrates various business functions, streamlines processes, and provides real-time visibility into a company’s operations. However, there are ways to utilise an ERP to go beyond basic business operations and achieve innovation.

Integration

An ERP software can be used to integrate different business functions, which can help organisations gain a more holistic view of their business and identify areas where they can innovate. For example, by integrating their supply chain with their finance system, companies can track the cost of goods sold and identify areas where they can reduce costs. Integration can also help companies improve their customer service by providing a single view of customer interactions across different channels.

Collaboration

Collaboration and communication are important within an organisation, brining people together from different business functions can help generate new ideas and approaches to challenges¹. By providing a centralised system for managing different functions, employees can easily share information and work together on projects. This collaboration can lead to innovation by fostering creativity and new ideas. For example, a company can use its ERP system to create a centralised portal for sharing product development ideas or collaborating on new marketing campaigns.

Customisation

One of the main advantages of using an ERP system is its ability to be customised to meet the specific needs of an business. Many ERP software providers offer customisation options, such as the ability to add custom fields or create custom reports, which can help organisations innovate and improve their processes. For example, a manufacturing business can create custom fields to track the progress of a product’s development or create custom reports to analyse the performance of different manufacturing processes. These customisations can help businesses gain insights into their operations and make data-driven decisions, leading to innovation.

Analytics

ERP software can also be used to generate valuable insights and analytics. By collecting and analysing data from different parts of the business, organisations can identify patterns and trends that can help them make better informed decisions. A study showed 58% of businesses that are data-driven are more likely to beat their revenue goals, compared to businesses that aren’t data-driven². For example, a business can use analytics to identify the most profitable products or identify the most efficient production processes. By using these insights, businesses can innovate and improve their processes, leading to increased profitability and growth.

ERP software is a powerful tool that can be used by businesses to drive innovation and gain a competitive edge. Organisations can use their ERP system to improve their operations and identify new opportunities for growth. If you would like to learn more about what an ERP system can do for your business, read more about our Pronto Xi ERP & analytics software.

¹ ‘How To Unlock And Scale Enterprise Innovation’, Forbes, February 2023.

² ‘Five ways businesses can maximise the value of business data’, Technology Record, February 2022.