Data analytics has come a long way in aiding multiple aspects of business operations. When this technology is properly utilized, it is a real game-changer in many instances and brings business growth within a relatively short period of time.
Today, the use of data analytics and insights is no longer limited to enterprise businesses. It is now widespread, with small and mid-sized companies using analytics in some capacity.
Why Data Analytics is Important for Product-Centric Businesses?
Technology is changing fast and influencing organizations to use the information for operating their business more efficiently. Once it is adopted, companies have better access to analytics and business intelligence (BI) tools that allow them to know more about how their business is performing.
Data analytics has grown to become a big part of keeping businesses afloat. It allows organizations to analyze data and gain valuable insights about the causes of particular events and know the objectives through easy-to-understand reports. Data analytics provides real-time information to help organizations improve business-wide visibility and increase profits.
There are four main reasons why product-centric businesses must adopt data analytics technology. They are:
Know Your Target Customers
When you know what customers want beforehand, it becomes easier for you to design and manufacture the products they need.
Enterprise resource planning software lets you collect customer data from different channels. With the help of the data analytics tool, you are able to use this information to create comprehensive customer profiles. This helps businesses gain complete insights into customer preferences and provide them with a more personalized experience.
Further, once you are aware of what products are favoured by your clients, you are able to determine the quantity to produce or distribute and the areas that you need to focus on to fulfil your potential customers’ desires.
New Products Innovations
Data analytics enables you to know the current market scenario and get a rough idea of the future trends that are going to trigger the need for new products. This information enables you to invest in futuristic inventions; produce products that would help you maintain a sharp edge advantage over your competitors while being way ahead in your profits.
Again, using data analytics, you would be able to gauge the production costs that are going to incur in making new products a forehand. The information enables you to understand what production method to adopt and effectively control production costs to save a lot of money.
Cut-Off Operation Costs
With a good data analysis system, you are able to gather and analyze data to detect the potential opportunities and determine the areas of your business that are originating bottlenecks, causing production delays, or using unnecessary finances.
By detecting the problem areas, you are able to take action to eliminate them. This would help you to ensure that all your operations are performing their best under different conditions while allowing you to mend the sectors that are error-prone and need improvements.
Data analytics technology brings significant cost advantages when it comes to identifying the means for reducing operational costs and finding more efficient ways of doing business.
Helps Business Solve Problems
It might be theft, uncollected receivables, legal liability, or employee attrition, every problem that arises in a product-centric organization is capable of bringing a halt to the business operations. Data analytics assists you to understand the risks and take preventive measures to avoid any occurrence of loss.
The data analyzed could be used to detect the malfunction in the business system and determine the actions to limit losses and reduce the risk of injury. It ensures that all the business processes function efficiently in maintaining the quality and quantity of production.
When you are able to immediately analyze data, you could make better decisions faster to resolve recurrent problems.
How Modern ERP Systems Use Data And Analytics To Empower Decision-Making?
One of the most critical uses of modern ERP software for any business entity lies in its capability to provide valuable insights needed for making data-driven decisions.
ERP system integrated with data analysis tool involves a detailed approach in collecting, analyzing, and presenting the findings in a way that is easy to interpret. Be it strategic operational planning or responding to changing market conditions, with this information, adjustments and improvements could be made to drive effective decision-making for increasing profitability and business growth.
How Does a Product-Centric ERP Help In Understanding Customer Needs?
Business intelligence ERP system records customer data. By analyzing what and how much products have been ordered, who and when it’s ordered, you would be able to more accurately forecast future customer demands.
Further, this information illustrates market trends based on variables such as product preference, seasonality, region, and so on. The comprehensive overview is useful especially in determining production levels and resources in the account of change in demands.
Complex Manufacturing Scenarios and the Role of ERP in Navigating Challenges
Manufacturing companies face numerous challenges related to production, inventory, supply chain, human resources, and finance on a day-to-day basis. An industry-ready ERP solution improves internal processes and overcomes common production problems. It plays an important role in solving your daily gripes. The cloud-based system enables you to:
- Replace disparate systems with a single platform to communicate data.
- Use a centralized database for storing business information and instantly generating reports from data collected from multiple sites.
- Get a designated module for effective production planning and scheduling.
- Integrated software solution that ensures your current operations are effectively managed.
How to Measure Your ERP's Data Handling Capabilities?
An appropriate ERP solution is capable of transforming your business, making it perform better by streamlining all its processes. But before choosing to implement, you need to determine the system’s goals in utilizing data for business improvements.
Here are some of the KPIs to measure your ERP software’s data handling capabilities:
- Reduction in production cycle time and costs
- Lesser inventory deviation
- Increase in productivity and profits
- Maximum resource utilization
- Improve in customer experience
Investing in the Right Business Software
Data is a valuable asset that has tremendous potential to impact businesses on their long-term success. That’s why it is critical to utilize the right tool to analyze the information and fully leverage its benefits.
We design the best ERP software in Singapore with advanced technologies that makes data analysis simple and effective. Fill in the form to request a demo and get a hands-on feel of how it works.