It is no surprise that it is becoming increasingly harder to keep up with the pace of change in today's competitive environment. A greater move towards digitization is driving disruption across almost all industries. A report released by the Global Center for Digital Business Transformation found that 4 out of today's top 10 business leaders in each industry will be displaced by digital disruption in the next five years. This disruption takes the form of a vortex, where industries are inevitably moving toward a digital center where business models and offerings are digitized to the maximum extent possible.
Almost half of the companies surveyed by the Global Center did not acknowledge the risk of digital disruption and almost a third were committed to a 'wait and see' approach. Without a proactive mindset in response to disruptive forces, companies fall victim to being unseated by these changes and are left scrambling to catch up.
Digital disruption is forcing businesses - particularly small and medium-sized - to grow at rapid paces and increase in complexity, size, and performance obligations. These demands may take the form of bigger client bases, international expansions, or acquisitions. Faced with these kinds of pressures, it becomes increasingly difficult for companies to manage resources and scale efficiently.
Smaller companies may not have the resources dedicated to handling complex operational processes. As a result, when growth occurs, balancing the books can become increasingly harder to accomplish. Employees that are used to doing time-intensive manual processes will suddenly find themselves being overwhelmed with even greater workloads and requirements. Add to this a tangle of siloed software systems and outdated processes, and growth can start to become a hindrance to the company rather than a benefit.
Achieve Simplification with ERP
With these pain points in mind, this is where an Enterprise Resource Planning (ERP) solution comes in. An ERP solution is designed to bring together the disparate sources of information that were once managed independently to provide managers with insights that can drive better decision making. Without a clear view of everything happening, it is hard to react appropriately to industry and market changes. With an ERP system in place, outdated and redundant processes can be identified, allowing businesses to put more effort and resources into solutions that will ultimately help them grow. Furthermore, operations can be easily scaled so companies can welcome international expansion or acquisitions without fear of being hindered. Armed with data that is up-to-date, relevant and streamlined, business leaders can better adapt to disruptive market forces.
With the rise of ERP solutions that are cloud-based, these software systems have the added advantage of removing infrastructure and cost barriers that also hinder growth. Cloud-based ERP systems do not require heavy upfront costs, and set-up and maintenance are simplified through Software-as-a-Service (SaaS) deployment. Factor cloud benefits into the simplification offered by ERP systems and small and medium-sized companies can be set to handle any change or pain point that comes their way.
Rand Group is an experienced ERP partner that has decades of experience assisting companies with achieving their business goals through the use of software. To get in touch with one of our representatives and find out more about how an ERP solution can help you, contact us today.