PostedOn: 2018-01-09 11:30:19

Digital transformation can be defined in many ways, but the essence of the idea is that new technology can not only develop traditional methods but can actually transform the way of doing things and enable a greater efficiency through new processes.

Managing New Processes

By embracing digital transformation, companies are seeing improvement in areas of customer acceptance, strategic tasks, and subsequent decision making, but before we can grasp what this means for ERP Software, we need to look at what digital transformation is doing to company strategy, and more importantly, how organizations are managing this information.

From a selling standpoint, making the switch to a more advanced digital process, companies can now reach customer demographics previously missed, gain more accurate information about customer segments, and retain and analyze this data in a central database accessible from anywhere in the world.

From a manufacturing perspective, the digital revolution has enabled the integration of business operations in a centralized ERP platform. This allows for real-time management of supply chain resources and can coordinate things like material ordering, scheduling, production, and customer billing.

To summarize, digital transformation impacts both employee and customer engagement by activating the invention and adoption of more advanced tools and processes.

Social Transformation

Possibly the most widespread but often disregarded digital transformation is social media. Not only can businesses interact with customers in a new way, but the fact that it is becoming the go-to channel of communication for some consumers highlights a fundamental transformation in process.

With this rise, not only are companies able to engage customers directly in a familiar social media setting, but it is also becoming a must for customer service and reputation management.  Further, these social platforms can be a gold mine for customer feedback, highlighting new and trending customer desires and needs.

What This All Means for ERP

As the focus of digital transformation expands organizational ability, through an embarrassment of options from mobile applications to cloud-based solutions, ERP systems are perfectly situated to enhance business operations and interdepartmental communication.

Leveraging an ERP Solution for the essential day-to-day tasks of things like accounting, project management, supply chain supervision, and other back-office functions, allows for streamlined business processes. For example, an integrated ERP system can not only allow you to digitize records from customer information to bills of material to invoicing, but it can transform the employee workflow.

As a result, the procurement department, shop floor scheduling team, shipping manager, and accounting team can be in lockstep, eliminating miscommunication, redundancy, and downtime. This isn’t simply a result of records being digitized and centrally data based, but rather a fundamental optimization for greater efficiency brought on by digitization.