Every business organization is aware of the importance of ERP systems in business management. However, not many are using it with integrated analytics. ERP systems generate huge volumes of transactional data. ERP analytics are inbuilt features that help in maximizing the value of data that is extracted from the ERP.
ERP analytic tools are critical for identifying innovative business ideas to a competitive edge over rivals. They work as a key requirement for smarter business decisions.
Let us understand in detail why analytics is critical for ERP systems and how they can make a big difference.
1. Valuable insights
Analytics helps in optimizing the value of data extracted from ERPs, thus providing better insights about business operations. Without analytics, managers are simply looking at manually compiled reports that are not based on real-time data reporting.
2. Smarter decisions
With real-time information on hand, business stakeholders can be well aware of what is actually happening throughout the organization. Smarter and quicker decisions can be taken with the help of forward-looking analyses.
3. Forecasting demand
ERP systems with strong analytics are capable of making predictions about product demands by making use of real-time inventory and supply chain data. With the right predictions about customer demand in the future, businesses know what they need to move forward in the game.
4. Increased revenue
Businesses using ERP systems with integrated analytics are able to significantly increase their revenue. By analyzing real-time data reports, organizations can ascertain their actual payoff resulting from their business strategies. Steps can be taken to make changes or adopt new strategies if required.
5. Improved visualization
ERPs with strong analytics and data visualization metrics can improve the overall data visualization process of an organization. Thus it becomes easier to spot trends and opportunities in the markets.
6. Customized access to data
With analytics, access to the data in your ERP can be customized based on the job requirement of the employee who is accessing the same. This way, organizations enjoy more control over important data of the business.
7. KPI identification
ERP analytics help in identifying key performing indicators to keep a check on the health of the business. KPIs are closely linked to the performance of different areas of the business that exhibit what is working best for the company.
8. Enhanced customer satisfaction
The end goal of every enterprise is happy customers. With CRM integrated modules in an ERP, all customer information can be managed in one place. Besides, analytics will also help in knowing customer behavior patterns to understand which customers are bringing in more revenue and to identify the ones not very active. Steps can be taken to involve inactive customers and make them more engaged and interested in the services and products of the company.