As industry analysts note, the most compelling reason to switch to cloud ERP is business transformation. But what, specifically, should businesses attempt to transform and improve upon? You could empty your pockets for a consulting firm’s opinion, but spare yourself the financial grief – the four business pillars in this blog tell you exactly where your focus should fall:
Profit is the net effect of two factors: revenue and cost. A healthy business is a profitable business, and contemporary ERP solutions are often just the medicine needed to get companies on track. The right ERP solutions can simultaneously help increase revenues and reduce cost, thereby increasing profit. Aberdeen discovered in its SaaS and Cloud ERP Trends and Observations research that more businesses with cloud ERP managed to stay within budget; in contrast, organizations with on-premise solutions ended up 12% over budget.
A process is the set of steps a business takes to accomplish its goals. Evaluating this involves looking at the entire development chain and determining which links need to be in place and which can be cut in the interest of efficiency. With a cloud ERP system integrated, businesses can view these processes holistically and ensure that the company’s established procedures are the optimal ones.
While process examines which things are done, productivity focuses on how well those things are done. Are your employees manufacturing as efficiently as possible? Would performing steps differently increase output? Cloud ERP gives business leaders the tools to analyze issues like these and implement solutions throughout their organization.
Once internal matters are in order, companies must position themselves and their products appropriately in the marketplace. This process takes many forms, but it almost always involves consciously projecting a cohesive image of the company to consumers and tailoring marketing campaigns to designated audiences. The right customers might have trouble finding your product if it’s positioned poorly, so don’t overlook this vital piece of the puzzle.
Cloud ERP facilitates such outreach and maintenance with CRM functionality and related features.
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With the four principles discussed above — profitability, process, productivity, and positioning — in place, your business will be primed for the most important P: Performance. For more information download our full whitepaper: The 4 P's of Business Transformation.