Digital transformation has become a necessity for businesses. ERP software, which we can describe as the first step of digital transformation, takes a critical role throughout the process. it’s no surprise many financial services organisations are now re-evaluating their business systems and the need to improve operational synchronicity, visibility, and effectiveness.
Digital transformation
The ERP software solution serves as an integral part of the business – it is here that all business’ data converges. Every new solution or process change expands the functionality of the ERP software. In our connected world, an ERP solution must not only guarantee the security of processes and process results, but also the security of the data. This aspect is often not the focus of software manufacturers and user companies, as many companies operate their ERP solutions in-house behind the ‘supposedly’ secure firewall. External access is usually only possible via a cumbersome VPN tunnel. Opening this access channel also increases the risk of being attacked by hackers, industrial spies or criminal organisations. The highest security standards, e.g. in terms of authentication, rights management, and encryption are therefore a must in the digital world. Contrastingly, the ERP solution of the future is open to the outside world and ensures the security of data and processes. It does not matter if the application runs on-site, hybrid or completely in the cloud.
ERP software solutions prepare decisions
Businesses are now existing in times where enormous amounts of data can be collected in under minutes. This information can be analysed and interpreted in the cloud using statistical methods such as machine-learning algorithms or Artificially intelligent I algorithms. This results in models that allow the ERP solution to independently decide or at least prepare decisions that the business should take. The results and effects of these decisions are compared with the expectations and thus flow back into the model. This creates an adaptive control loop, through which the models continuously improve themselves.
The requirements for a future-proof ERP solution
Firstly, new business models often result in new software. Data that converges in the ERP of different systems must be readable, evaluable and processable. An ERP that is a silo and doesn’t have the ability to integrate with new data models or new software is not useful to the business. Secondly, there is a need for permanent access and mobility to ERP software solutions. It is only a matter of time until business owners and managers will want and need to use a smartphone to retrieve ERP data and create complex analyses. In order to access the data at any time, you need a mobile cloud solution that is always up to date.
ERP software solutions must be able to handle an infinite amount of data. For this reason, a corresponding architecture must be available in the background in order to be able to process and utilise the growing data sources. Digitisation and its rapid growth increase the complexity of business processes. That is why ERP software solutions’ play a significant role in being a central application for the organisation. A company that wants to efficiently implement its digital strategy and avoid complexity traps needs a flexible and scalable IT architecture.
Businesses should be looking to forge relationships with consultants who have a thorough knowledge of the financial services sector, precise business model, its financial requirements and the accounting conventions of the organisation’s geographic location – all these factors which are crucial to a seamless ERP deployment.
