How to Mitigate Business Risk Caused by Outdated Systems
Tuesday, 29 Sep, 2020
Outdated systems are a big cause of business risk, but this year has been characterised by ongoing uncertainty. Covid-19, plus Brexit rapidly approaching, means that businesses are facing all sorts of unprecedented risks. External factors are beyond anyone’s control, but internal factors, such as outdated systems and processes, are something businesses should be looking at as a way to mitigate business risk to help ensure their long-term survival.
Outdated systems and processes are common throughout all sorts of businesses. This situation is usually caused by business growth over time, although it can be contributed to by team members’ fondness for systems that they’re used to, even though they can’t keep pace with company requirements as the business grows, and end up creating manual work that could be automated with the right system.

Systems that can’t ‘talk to each other’

Companies usually start out with a simple financial package, such as Sage 50, QuickBooks or Xero – these are excellent at handling their needs when the company is small, but can struggle as the company grows. This is particularly true when additional requirements present themselves, such as the need to automate their CRM and sales or stock control.

Additional software packages are introduced but if these don’t ‘talk to each other’, the process of transferring data becomes clunky and repetitive, with lots of manual administration required to ensure each system is up to date.

It is at this point that companies should consider implementing a comprehensive ERP solution. This will automate their processes and provide a single source of truth, while helping them to manage every functional area of their business. A solution like SAP Business One provides not only financial functionality, but also CRM and sales management, inventory control, production and project management, which means that it can grow with the business as requirements adapt and change in the future.

Communication and knowledge

An ERP solution such as SAP Business One also provides detailed reports into any aspect of the business through its advanced reporting and analytics functionality. These reports are available almost instantly at the touch of a button, eliminating manual administration and errors created when trying to pull reports from disparate systems. Management can also view data on KPI dashboards, giving them an ‘at a glance’ snapshot into the state of their business.

The insights provided from not having to ‘search’ for information has a big impact on time savings. This enables management to take agile, strategic action to respond to market conditions.

Customer expectations

With increasing competition in the market, meeting customer expectations should be the priority of any business. Being able to set themselves apart with the quality of their customer service is an important area to focus on, as well as helping businesses build long-term customer relationships.

Technology can help companies improve the quality of their customer service by optimising their customer communication. Whether that is providing delivery updates, information on stock levels or promotional offers, the benefit of excellent communication is intangible and often immeasurable, but can have a significant impact on future sales. In most industries, there is plenty of competition out there so ensuring the best customer experience is essential for future success.

Minimise IT problems and associated costs

IT costs can make up a substantial proportion of business overheads, particularly when IT staff have to manage numerous legacy systems. These can be massively reduced by implementing a cloud-based ERP system, like SAP Business One. With updates handled routinely and automatically by the provider, there is no impact to the businesses’ daily operations. Not having to spend time customising, integrating, and upgrading systems and platforms eliminates errors. It also allows IT staff to focus on more strategic areas helping to future-proof the business. Inefficient IT environments make it more and more difficult for the IT team to support your business needs, but this is what happens when your requirements expand beyond the capabilities of outdated systems and processes.

Cloud-based ERP solutions also eliminate the risk of catastrophic and costly data loss, with hourly, daily, monthly and annual data backups provided as standard. The risk caused by end-of-life software and hardware failures can be eliminated completely by running your ERP system in the cloud.

Looking to the future

Cloud-based ERP solutions, such as SAP Business One help mitigate business risk to support long-term success. From the immediate cost-savings generated by not having to maintain on-premise hardware and outdated systems, to the softer, more intangible benefits, of stronger customer relationships, SAP Business One provides a host of benefits that provide a significant return on investment. Forward-thinking companies realise that investing in their IT environment will help future-proof their business.

To find out more about SAP Business One, and how it can help your organisation automate and streamline processes, create efficiencies, and save time and money, please contact our friendly team now.

 

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