Effective decision making is crucial for the success of a business, and the foundation for this process is built on accurate and timely data…but how on earth does one get that!?
Let’s take a walk down memory lane…
It is the first day of the life of your company. After months (or years) of planning, you finally open your doors. The office is all shiny and new, glimmering with hope and excitement for the future. You have a small staff, phones, chairs, desks and computers; all ready for action. You likely have installed a basic accounting system (such as QuickBooks), and have done your due diligence in learning how to operate it.
Fast forward 5 years…
Your company is growing. You have expanded staff, and possibly even opened new locations. You have steadily increased in customers and revenue and now are beginning to notice a need for better customer relationship management. You do your research and implement the best CRM program within your budget.
A year later…
Business is picking up, and so are inventory requirements. You have opened a second warehouse to store excess inventory but are having an extremely difficult time keeping track of it all. You hire a warehouse manager who suggests you consider an inventory control application and you agree…
Fast forward to present day…
You’ve been struggling to keep track of all of your data housed in separate systems. You hired an office manager who spends 40 hours a week manually inputting and exporting data out of the accounting, CRM and Inventory Control applications and re-keying it all into an external Excel spreadsheet. You are hoping to get a big-picture view of the current conditions of your company, customers, and inventory; in order to determine the best next steps to take improve and capitalize on sales opportunities. However when you see the report it is beyond comprehension and you are pulling your hair out in frustration and confusion…
Thus is the greatest threat to the future of your company. Inaccurate, delayed, and overly complex business data, housed in multiple IT systems is hampering your ability to make sound business decisions. Let’s take a look at the negative effects produced from a lack of integration:
1. Lost productivity due to the use of too many different, and segmented IT systems.
Business information and data can grow as much as 66% each year, and is constantly changing. Your business’ information relating to accounting, inventory, customers and more; is likely to be very different today than it was even one month ago. On one hand business technology has evolved to give us a greater opportunity for insight into our business. However, many companies find themselves buried under mountains of data, unsure which figures are useful and which are excess. When business systems are not integrated it is likely that there is no streamlined process in place for capturing and storing data. This leads employees to have to hunt down the data whenever information is needed. Some estimates show that American companies waste more than 5 billion hours in just looking for information. Other statistics note that employees can spend as much as one quarter of their time searching for data and 20 minutes or more, each day, recreating information that already exists but cannot be located.
2. A lack of real-time visibility.
Companies using older business systems may be struggling with old technology, based on transactional information. More up-to-date software provides a greater level of data drill-down, insightful reporting and real-time access to the actual information you need to see.
3. Decreased data accuracy.
When information is stored in multiple systems, it is inevitable that it be pulled from one and entered into another, or simply hand-keyed multiple times into different areas. This without a doubt increases the likelihood for error and inconsistencies. When front and back office systems are integrated the entry requirement is reduced to a single action which can then be updated throughout all other systems. Not only does this save numerous hours each week, but it increases the likelihood that you will be able to trust your data when making decisions for your business.
An effective real-time decision making environment can only be accessed when business systems are integrated and configured to align with your specific business process. If you have been struggling with disparate software applications and would like to learn more about the benefits of integration, you may be interested in viewing our complimentary whitepaper: Front to Back Office Integration – The Only Way to True 360° Customer Visibility and Seamless Data Consistency. Get it now…
Should you be interested in discussing your specific needs with one of our experienced business consultants, please contact us today. We would be happy to provide you with a consultation.