ERP systems have been changing over the years. Advancements in technology have had an impact on the functionalities of business solutions. A system that was once considered the ultimate business tool a few years ago is no longer seen as the best.
Microsoft ERP systems have also undergone several changes. For example, the most recent ERP system, Microsoft Dynamics 365, has more functionalities than Microsoft Dynamics GP. Before licensing an ERP system, it is crucial to consider its age, components, and the pros and cons.
Increased Productivity
Modern ERP systems look at business entities as one unit with various components. Each department contributes to the overall performance of the company. This is why the ERP system includes features that will help boost productivity in each department. For example, Microsoft Dynamics 365 has modules that promote customer relations, marketing, finance, warehousing, manufacturing, sales, and insights.
Financial Management
Cash flow is vital in every business. Unfortunately, some companies fail to find a balance between income and expenses. The operations of a company need to be closely monitored to ensure the revenue is higher than the costs.
Modern ERP systems allow companies to identify any challenges that may affect cash flow. For example, the sales and marketing feature is closely linked with revenue. You can see the cost of marketing a particular product and how much has been earned from the targeted audience. If the return on investment is too low, the company may take steps to halt the campaign or choose another marketing tool that will increase revenue.
Better Customer Service
Customers today are more demanding about the quality of the products and services they expect from companies. This does not mean this was previously a non-issue for customers. However, social media has become a tool used by disappointed clients to warn would-be clients about spending money in companies that have been a disappointment. This has made companies very cautious about the way they deal with clients.
Satisfied clients will always come back for more products and services. The Customer Relationship Management (CRM) component of the Microsoft ERP solution helps companies to retain data of the clients. This boosts the productivity of employees since this helps them to understand and appreciate customers more. This knowledge also gives a human face to the company since the customer feels like he or she has a relationship with the company.
The Use of Business Intelligence Tools
Artificial intelligence is a feature that was certainly missing in the older ERP systems. Microsoft Dynamics 365 has several AI tools that have been incorporated into various modules. Consumer insights determine some of the financial projections. For example, you can estimate when the customer is likely to need the product or service again. You can also monitor return clients and analyze the financial capability of customers before investing in a particular product.
If, for instance, you are a plastic surgeon. Before investing in an expensive laser, it is important to find out if the market for that laser treatment is available. You can determine this by looking at consumer behavior, interests, and activities.
Business intelligence tools such as comprehensive cloud ERP systems and solutions save companies from making investments that will never yield the expected results.