As we entered the new millennium, the cost of Enterprise Resource Planning (ERP) systems was out of reach for small to mid-sized companies. However, as technology continues to grow exponentially, times are changing.

Have You Optimized the Productivity of Your Office Workers?

The price of many technologies used in everyday life like mobile phones and computers can be considered low. Likewise, the cost associated with ERP systems has also been reduced, and thus small firms can acquire these systems.

Business managers, for a long period, have been involved in increasing the productivity of industrial workers by trying to monitor their productivity, controlling their production rates, and eliminating all forms of wastage of time and resources with a view of cutting down on the costs, the same approach is not accorded to office workers.

These workers, who sit in front of computers, in their cubicles typing or in an extravagant office sipping on espresso as they plot out their next move, are very important to keep the wheels of a business running.

This is a crucial point: whether office workers are working hard or not, one has to know. However, beyond this observation, all structures put in place must facilitate their productivity as much as possible. A possible solution to this is to involve ERP systems in improving the running and enhancement of business processes.

Three Productivity Killers

For small businesses, ERP systems have to address the three main productivity killers:

# Inefficient Processes

This drives the office workers nuts through manual data entry, duplicated efforts, and information systems silos. ERP systems consolidate the companies’ business processes into a single solution to eliminate overlapping and work enhancement.

• ERP systems improve data organization by avoiding the problem of using many papers and spreadsheets, as well as constantly having to consolidate them.
• Automate invoicing, order processing as well as inventory management since it helps to cut short time and avoid.
• The availability of data and reports enables quick and correct decisions to be made therefore less time is taken.

# Poor Communication

Downtime arises if the teams are denied means of interacting and cooperating through timely and efficient sharing of critical information. Accounting packages that are part of ERP have features such as email to support coordination among workers and ensure group conformity.

• Implements a communication system in the ERP such as emails, instant messaging, project management interfaces, etc.
• It is essential to ensure that all the information required and all the discussions are done in a shared work environment and documents or papers.
• In the ERP system, control tasks that are assigned and the subsequent completion time as a way of increasing accountability.

# Data Silos

Stations that have data that is either very hard to get or very difficult to access are likely to drag down decision-making and problem-solving processes. ERP systems bring all the information to one place hence decision-making is done in a faster and more accurate way.

• Centralize the storage of all business information to a single point that is available to all the departments in the company.
• Prepare other reports showing data which is accumulated from several departments that may assist in perceiving the business holistically.
• This involves having secure measures in place for handling data, especially for the aspects that are considered sensitive to people outside a certain escalation level.

Small businesses should adopt ERP systems to improve the effectiveness of the employees in an organization especially office personnel as they will be provided with adequate equipment that will assist them in doing their work.

Addressing the Productivity Killers

Here is how you can address productivity killers:

# Inefficient Processes

It is not uncommon for managers to have a difficult task in evaluating and computing the productivity of tasks in the marketing, buying, and HR departments. This means that in most cases inefficiencies are left unaddressed because there is no one supervising their operations. The reality is that those managers who never know their time and/or resources are being wasted cannot attend to or prioritize them.

• Delays in getting orders from the sales representatives to the customer service desk may slow down the delivery of goods or services.
• Many customer service representatives could spend hours trying to look for codes for the project to complete the orders.
• Such delays can affect the whole production process, reaching several teams and thus stressing them.

This results in various inefficiencies that only increase the time required to complete a product or service, in which the production team has to make up for the lost time while planning and dodging potential problems. This overtime is a result of faulty processes that create work overload which affects the company’s labor costs and employee productivity. Furthermore, customer services will be compromised as they will fail to deliver as per the desired expectations of their clients due to such hitches.

Such seemingly inconsequential operational problems are capable of putting the ‘ brakes’ on business expansion over time. Time spent on such processes equals money wasted, as it can be compared to the money being put through a shredder. Therefore, tackling these basic issues is important to avoid the continual drawdown of your resources.

# Decision-Making in the Dark

It’s a good idea to work efficiently, but only if the data being passed on to the public is correct. I have always learned that the majority of managers are left to make decisions where adequate information is missing and are described as decision-making in the dark. Such a situation results in the development of erroneous strategies and the misallocation of resources.

• ERP system offers managers current, actual, and reliable company information to help in making sound decisions.
• The type of data used in these decisions plays paramount determinative roles, and the timing of such data is also very sensitive.
• Consequently, if either the information provided is wrong or the frequency of the updates is low, then it is still possible for the managers to make bad decisions while being efficient.

For instance, a manager may choose to allocate the firm’s marketing resources to a particular segment that seems to be expanding. This decision might prove costly when the figures or data are wrong, by utilizing resources and failing to explore other opportunities. It is thus clear that effective systems should be used that would help in arriving at correct decisions thus reducing costs that are associated with wrong decisions.

# Auto Wreck or Auto Pilot?

Most managers work with an operational style, which implies the manual execution of all processes by the owner. These can result in wastage and stress at the workplace, the primary reason why it is encouraged that one engages in physical activities.

• Automation refers to the optimization of various activities and the release of valuable resources, which will help the managers focus on the expansion of the business’s operations.
• If a business relies heavily on the direct participation of the managerial staff, this implies that they are working in the business, not on the business.

In this way, the managers of the companies can effectively manage their businesses if only they have defined enhanced processes and methodologies that would provide a smooth-running ERP system.

Automation ensures that the organization performs well without having to be supervised all the time.

Imagine your business being on autopilot allowing you to think of the next step in expansion or take a holiday with no worries about your business. By achieving operational excellence through automation, employees are enabled and enhanced, which in turn supports the goal of business success and development.

Conclusion

The advancement in technology has also helped in enhancing the development of these systems where small businesses can afford to implement the ERP systems. Using these systems makes it easy for companies to work around the issues of inefficiency as well as bridging gaps in communication which is characterized by the existence of data silos.

The final product of the application of this process is therefore a highly productive, efficient, and competitive business environment. Going for an ERP system is not merely a way of surviving in the current stiff market but also picking a poker that can turn the future into a winning hand.

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