The unemployment rate has jumped to the record limit in 2020. Covid-19 pandemics threw millions of people around the world out of work. Trading Economics states that in the US the unemployment rate increased to 14,7% in April 2020. This is the highest number since the Great Depression era. The difficulties as this one are shaking economies of every country on the Globe. Unchartered waters of muted economic recovery bring financial threats and raising competitiveness to businesses of all sizes. Though having a tool to turn these threats into opportunities, we gain the possibility to soften the impact of the deadly virus on our businesses. This tool is enterprise development.
Before we take a deeper insight into this process, let's define what is the meaning of enterprise in business.
To understand the all-in-one meaning of enterprise in business it’s better to start with looking up the word in the dictionary. Merriam-Webster dictionary gives three definitions:
- a project or undertaking that is especially difficult, complicated, or risky;
- a unit of economic organization or activity;
- readiness to engage in daring or difficult action.
If we combine all of them into one, we receive the meaning of enterprise concept in business: the company that plans the business, launches and runs it, organizing all the processes and shouldering all the possible losses.
What is enterprise development?
The concept of enterprise development lies in investing knowledge and time, attracting investment, building business linkages, employing more people for an enterprise to compete in the global economy. It encompasses the process of improving a company’s image and increasing the capital by bringing more value to the customers. The main intention of the enterprise development process is leading to positive societal change through stimulating economic activity.
Such an approach is especially beneficial for small and medium-sized suppliers as it enables them to improve their sustainability through gaining experience in transnational cooperation, the ability to get larger deals, and is relatively inexpensive.
IT industry plays an important role in building an enterprise that aims at effective management of all the inner processes and successful partnerships.
With the use of cutting-edge technologies, enterprises become able to simplify all core business processes, boost communication efficiency, and solve critical workflow challenges.
An example is the Enterprise Resource Planning system also called the enterprise system.
How do enterprise systems work?
An enterprise system is an integrated cross-functional software system that supports business activities for different business functions.
To simplify, not long ago organizations used to collect the data from different information systems to meet the needs of different business functions (manufacturing, marketing, sales, etc). It’s easy to understand how much time and effort it required. Nowadays, all these separate information systems can be replaced with a single system that integrates all key business processes.
Benefits of Enterprise Resource Planning systems
Real-time information and data
All the departments and managers across the enterprise get access to the uniform flow of information. Up-to-date and precise data enables them to make better business decisions and discuss critical issues quickly.
Reduction of operation costs
Investing resources into one centralized system, you don’t need to spend money on licenses, infrastructure, or staff of the different systems. You only concentrate on one powerful ERP system that significantly reduces your labor and operating costs.
Most frequently when you address a software company, it offers you a few applications that can be put into action together to achieve your business needs. At the same time, each application can stand alone. This way you are able to choose which components work best for your enterprise.
Improvement of customer service
Having all the client information centralized, your team gets an opportunity to focus on customer retention and maintenance.
Enhanced reporting and planning
With ERP solution you get a unified reporting system applicable for every process in a company. This helps to generate and analyze reports at any time and department.
The investment into such systems gives you a long-term opportunity to boost productivity and control every single process in your organization making the process of enterprise development smoother and less risky.
If you need some help getting started on your own enterprise development strategy, feel free to contact us. Our experts at inVerita will make an honest assessment of your business needs to find an ERP system that will be the most beneficial for your enterprise.