SMEs Are Reaping the Benefits of Simplification
Let’s explore the benefits of simplification.
According to a recent Knowledge@Wharton paper, the need for business simplification has never been more urgent. Even small companies are having to become more global, outsource parts of their operations, create digital businesses that serve many channels, and meet complex tax and compliance requirements.
It’s imperative that as they grow, small and midsize companies fight the natural tendency to create complex business processes that will only bog them down, limit transparency, and rob them of the agility needed to meet demands for change. Because once these processes are in place, they are difficult and costly to unravel.
The most successful high-growth companies are forging a better path – one that will allow them to stay agile, scalable, and responsive, regardless of how big they grow.
As noted in an Economist Intelligence Unit paper, “Scaling SMEs: Building a flexible platform for growth,” many are choosing to deploy business software that supports connected, automated processes and full business transparency. And they are reaping the benefits of simpler, leaner, more efficient operations, even as they grow.
For example, to work more effectively with partners, gain transparency, and support continuing growth, many small and midsize SAP customers are deploying integrated enterprise resource planning (ERP) solutions. An ERP solution can enhance operations in ways that improve the quality, consistency, and on-time delivery of products and services. It can also provide greater visibility into purchase orders, resulting in better inventory management, data access, collaboration, and customer service. And as a result, these organisations can stay ahead of the competition – both now and in the future.
And other firms are combining an ERP solution designed for growing companies with the SAP HANA platform and analytics in order to accelerate core processes; make faster, more informed decisions; stay ahead of customer demand; and maintain a competitive edge.
These examples aren’t hypothetical. They are reality today for thousands of small and midsize firms who are realising huge returns on their investment in SAP software as a platform for growth. For example, customers have reported benefits of simplification such as:
- 67% faster monthly accounting and closing cycles (from 6 to 2 days)
- 2–3 day reduction in days sales of inventory
- 60% increase in operational efficiency
- 10% reduction in operational costs
- 67% improvement in on-time shipping to consumers
- Automated data entry and credit card processing that saves 40–80 hours per week)
- Vastly shorter timeframes to train new employees
Here are 3 key benefits of simplification:
- Increased efficiency – Simplifying processes, tools, and workflows eliminates wasted time and redundancy. This streamlines operations for greater productivity.
- Improved focus – Removing unnecessary complexity allows you to concentrate on what’s most important. You avoid distraction and confusion.
- Enhanced communication – Simpler language, systems, and organisational structures help improve understanding and transparency. This facilitates better collaboration across the business.
These benefits of simplification are a direct result of running simpler on business software that centralises, automates, and streamlines information and processes.
To find out how Signum Solutions can help your specific business realise the benefits of simplification, call 01244 676 900, or contact us here.
Start streamlining today!
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