Digital Transformation and ERP Systems
Achieving digital transformation through ERP system implementation
12 February, 2021 by
Digital Transformation and ERP Systems
Chong Jin Hong

Digital Transformation and ERP Systems

As technology continues to grow, more and more businesses have been trying to adopt technology into their daily business operations.

This leads to the introduction of the term “Digital Transformation” to the public.

However, when the term first comes to light, it is often overlooked by businesses as many of them are unclear of what it means, or what they have to do to achieve digital transformation.

Only until recent years that businesses start to gain clarity on what digital transformation actually means and how it can benefit businesses through leveraging digital technologies.

A man is pointing at an image of a globe to a woman.

What is Digital Transformation?

Even to this day, most businesses still misunderstand the true meaning of digital transformation.

Some might think that digital transformation is a system, software, mobile application, or a site on the internet that they can adopt into their businesses.

But, digital transformation is more than that.

Instead, digital transformation is actually one’s way of thinking of being more innovative and efficient, so as to stay relevant in this competitive market.

“Digital transformation is the use of technology to radically improve performance or reach of enterprises.” 

                                                                                                              (Karagiannaki et al., 2017)

“The use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major business improvements such as, enhancing customer experience, streamlining operations, or creating new business models.”

                                                                                                           (Liere-Netheler et al., 2018)

To sum it all up, digital transformation is the process of using digital technologies to improve business performance.

Read more: Digitization, Digitalization, and Digital Transformation

The bar chart and line graph show the increasing trend of business.

Benefits of Digital Transformation

Digital transformation is the integration of digital technologies into business processes across all departments.

Even though the process of digital transformation might be culturally shocking to some, the return that businesses can gain from it will surely be worth it.

By taking full advantage of what technology has to offer, businesses that undergo digital transformation will have the opportunity to gain benefits as such:

  • Effective Resource Management

  • Data-Driven Resource Management

  • Increased Profits

  • Improved Efficiency and Productivity

  • Better Customer Satisfaction

Effective Resource Management

Instead of the traditional way of managing resources whereby everything is dispersed across different software according to their respective departments, digital transformation encourages the integration of information and resources into one single platform.

Data-Driven Decision Making

Through digital transformation, businesses will be able to make better data-driven decisions that are personalized, relevant, and fit to their own business needs.

Increased Profits

Digital transformation is the process of utilizing technologies to reduce the need for manpower and any other costly business tasks.

Thus, by taking the digital transformation approach, businesses will be able to save costs while at the same time, increasing profits.

Improved Efficiency and Productivity

The efficiency and productivity of businesses can be improved through digital transformation when manual tasks are automated with the adoption of technology.

Better Customer Satisfaction

With the help of digital technologies such as social media and analytics, businesses will be able to better serve their customers through effective communication and a better understanding of their customers.

How does ERP System Lead to Digital Transformation?

Businesses often ask, how does one achieve digital transformation? What can they do to start the digital transformation process?

Well, one of the best ways for any business to start its digital transformation journey is through the implementation of an Enterprise Resource Planning (ERP) system.

Here’s why:

1. ERP system allows integration

One of the key aspects of digital transformation is integration.

With the implementation of an ERP system, businesses will be able to have a fully integrated platform.

Data and resources from all departments will be readily accessible in real-time from one single source, making data and resources management more efficient and effective.

2. ERP system encourages impactful and data-driven business decision

ERP system provides businesses an overall clear insight on business reports, employee performances, financial statements, and so on.

With the data acquired, business owners will then be able to make better data-driven decisions that are more impactful and relevant.

3. ERP system allows automation

Manual tasks such as data entry and replenishment of stocks can be automated through the implementation of an ERP system.

By reducing manual tasks, businesses will then be able to cut down the costs needed to acquire more manpower.

Human errors that could bring losses to businesses can be avoided as well, thus increasing the profits of businesses.

4. ERP system adds a competitive edge to businesses

Digital transformation is all about gaining a competitive advantage over the other competitors.

Thankfully, the ERP system is a flexible and agile business management system.

With that being said, businesses are able to customize the system at any given time according to their business needs.

Businesses that have an ERP system that is tailormade to help them achieve their own goals, will have an additional advantage as compared to other competitors who do not have an ERP system.

5. ERP system boosts customer satisfaction

Another goal of digital transformation is to improve customer satisfaction and experience.

With an ERP system, businesses will be able to communicate and connect with their customers better.

Real-time feedback and data of customers can be collected by businesses, which helps them understand what their customers really want.

Businesses can also build stronger relationships with their customers with the ERP system’s CRM and Social Marketing Modules.

ERP system is a business management system that has the capability to transform all business processes whether it is, automating manual data entry tasks, simplifying inventory management, or integrating data into one single platform.

With that, the ERP system checks out most of the boxes of what businesses need to have in order to achieve digital transformation.

Start your digital transformation journey with us now!