As of 2022, there are a total of 80,152 startups registered in India as per reports from Statista. But the future isn’t bright for the business houses as SEMrush claimed that by the year 2025, 80% of the business owners will stop funding due to a lack of ROI. So, the question appears why businesses are failing to generate the return.
As quoted by T. Boone Picken, “A Fool with a Plan is better off than a Genius without a Plan!”, which explains that a proper business plan is what makes or breaks a business. Having said that, the lack of a proper business plan is not the only reason why a business fails. Reasons like a customer support system, proper hiring, lack of technical assistance, flexibility, and many more are the factors, involved.
In today’s world, all the issues mentioned above and more are not too difficult to solve as with the rise in businesses, solutions have also kept getting better and more advanced in nature. Since the quickest and easiest way to solve problems is through the help of technology, advancement in the sector has grown massively in the last decade or so.
ERP Technology for Businesses
The main focus for any business is to generate as much return as possible through the system. To achieve that, technological support is something that no organization could able to ignore.
For example, in the case of a transport business, software has come up that could able to track vehicles while they are on move. While talking about technological help, how can we forget how advanced advertising has transformed with digital marketing?
This is where the topic of ERP came up from. Enterprise Resources Planning (ERP), is a system which is allowing businesses to choose a much simpler way to process business operations.
Hiring employees, managing attendance, maintaining company records, and filing for taxation are only some of the works that cloud-based ERP software simplifies.
Earning revenues is probably the last stage for any business structure, it’s the proper structuring in the initial stages, that helps the growth of an organization through revenue.
What are the different issues that a business can face during its operation?
Running a successful business is not a joy ride for any business owner. There will be issues and hindrances every other day and the quicker it gets solved, the more efficient will be the operation. So, what could be those problems? Let’s find out.
Financial management
Managing the company funds and keeping a regular check on the expenses and earnings, is no doubt a hectic task for any owner. For any owner, turning over page after page and file after file is a task, that owners might be wishing they never had. While managing finance is the biggest responsibility, executing it properly is equally a head-banging task for any individual. As a result, mistakes happen, and solving those tiny errors take hours to solve which eventually affects the productivity of the employee and the company, side.
Errors Due to Manual Work
When a business does not adapt to technology in time, manual work turns out to be the only option and this would lead to more errors. The work will get more prone to errors and thus leads to a waste of time, energy, and money. Moreover, manual work results in more papers and a workforce, and this brings in more managerial responsibilities as well. So, overall, manual work can end up in more errors in the operation and this could lead to a big business fiasco if not handled in time.
Regulation and compliance
As the business market changes, the rules in the business market are also changing hand in hand. If the regulations are not properly managed, this could lead to non-compliance issues with the business house.
Recruiting the right talent
Needless to mention, having the right talent in the organization is the primary factor for business growth. This is, however, the most common issue that almost all business house goes through. As per Economic Times, one bad hire in India could cost up to Rs.20lakhs as per a survey. It has also been recorded that 84% of companies in India are affected due to bad hiring in their organization. So, these statistics, clearly lime lighting the issue of bad hiring and its urgency to minimize it.
Technological upgrades
Technology has been upgrading every day and if it’s not adapted in time, the business could fall back in the race. This is however the problem in today’s market. With the enhancement of technology, companies are not upgrading themselves, which leads to operational issues and ends up in poor performance.
Data management
Data by far can be called the backbone of any business organization. Without no business decisions and forecasting can be made. Management becomes trouble without the proper availability of data. Businesses that have poor data management systems face issues in forecasting and decision-making.
Customer service
Servicing the customers should be the ultimate goal for business as one successful customer can create five more customers and the web keeps getting bigger. This is how businesses grow with time. But, if the business does not have the right infrastructure to support the customers, it cannot be good news for the business.
Impact of ERP on Managing Business Challenges
Using cloud ERP software for businesses enables the business to address the challenges and find an easier way in solving them. Through the system, managing the workforce and the workplace not just becomes less challenging but it boosts the business equally in time. As businesses kept upgrading technologically, ERP software has also become more flexible and adaptable to the organization.
Here is the list of challenges that the Enterprise Resource Planning (ERP) system solves in business
Customer service
A satisfied customer is the result of a successfully operating business. Technology has made this task much more spontaneous with time. ERP software has helped businesses in providing flawless customer service for years. Through this, the business could able to inform customers of timely data and services. The customers are kept updated on the financial and accounting front. Documents and notifications can be transferred to the customers in a punctual manner and all this with the help of well-managed cloud ERP software.
Communication
A clear transfer of data among departments develops proper communication and clarity in action. Cloud ERP software is the technology that allows businesses to enable this factor. While communication is one of the biggest challenges for large industries, solving them is a difficult thing without ERP. This software helps the departments in having access to the company data and information, which brings a clear understanding of the operations going around. Working becomes much more efficient and productive within a clear and communicable environment.
Data Management
While a manual working environment makes data management a difficult task to undertake, businesses started to shift to technology-based working due to this very reason. Enterprise Resource Planning helps businesses to a great extent in managing huge and complex data, very easily and safely. The cloud solution, allows businesses to focus on other works, while the software providers take care of storing, reporting, and safekeeping the data for the business.
Technological upgrades
Currently, two versions of ERP are used by business houses, on-premise ERP and cloud-based ERP software. While upgrades are on-premise ERP is not very compatible with the software, and the cloud system is much more flexible in nature. Through the cloud system, the upgrades are taken care of by the vendors and the flexibility enables the software to become compatible with the update and does not hamper in functioning.
HRMS
Choosing the right talent, managing the payroll works, looking after employee attendance and other workplace tasks are very well handled by an ERP system. An ERP system helps monitor employee performance through KPIs, attendance monitoring, and payroll adjustments in a much quicker time.
Compliance
Businesses need to be compliant with government rules and regulations and this is what the cloud ERP software, carries out. During GST filing, the system files the report with GST compliance which keeps the business compliant with government policies.
Errors through Manual work
An ERP system is completely technology-based and it eliminates manual work within the organization. The data that is being manually entered is stored within the software hence, there is no chance of loss of data. Moreover, the data is very securely saved and in the case of cloud ERP software, the data gets stored in the cloud. Through this system, the removal of manual work takes away the risk of any errors relating to it and makes the operation error-free.
Financial Management
The issue with financial management is a very common thing in organizations and with the help of ERP, this can be very well-maintained. Managing finances is a lot simpler when it is recorded through an ERP system. All the financial records stay within the system or in the cloud, and the financial manager could check the data whenever required. Moreover, with the help of technology, any specific data can also be imported in its preferred format and all this can be done through a Cloud ERP solution.
Decision Making
When too much data and information is scattered everywhere, decision-making gets delayed and at times not proper. Cloud-based ERP software helps in making decision-making easy, storing all the data in the cloud space. The data is accessed from anywhere and with the help of previous data, and real-time data, future forecasts and decision-making become easier.
Conclusion
It can be concluded by stating that, businesses can face many issues due to their manual form of working. Manual working makes the system much more complex and data much more scattered. Since data is the most vital thing for any business, it is very essential to find a solution that can safeguard the data and other issues.
WrkPlan ERP systems can able to solve several issues that businesses normally face in today’s market. From, workplace management to data management, everything can be very well-maintained. Monitoring of performance and safeguarding of data is possible through cloud-based ERP software. It is highly recommended for businesses adapt to the ERP solution with cloud integration to simplify operations.
