Enterprise Resource Planning or more commonly known as ERP and predictive analytics go hand-in-hand in terms of bringing the best out of your business. And there is no doubt that, nowadays, ERP analytics is an essential part of every business process. And over the past few years, the analysis of big analytical data as well as bringing the flexibility into the enterprise’s critical operation has only benefitted organizations for progressing towards the larger business prospect.
You may own a profitable venture, and have all the right resources and planning in place right now. But how long can you sustain that? Do you believe you can maintain the same return every year? Many businesses kick off like a king but after a few months or years, it starts to experience the constant downward slope of its business. This mostly happens due to not having the proper predictive analytical drill in the picture.
But with the proper implementation of the right ERP system and its predictive analytics capabilities, your company will no longer require to worry about what you need to do and when you need to do it. The ERP will inform you with reliable and quality predictive analytics as well as get benefited from human resource planning that will help your company overcome all those lackings and take your business to a new height one year after another. All you will need to do then is meet those targets accordingly.
And so today’s post will be all about the importance of predictive analytics in business and how ERP boosts its capacities to win in the ever-competitive game of business.
Why Is Predictive Analytics Important for Business
By every means, in a business company, predictive analytics is something that describes the usage of previous data in order to develop informed analyses and assumptions about future outcomes. A number of big companies use this advanced method to assess risk. So the importance of predictive analytics in enterprises is undeniable. But mostly, in most companies, predictive analytics is imperative to:
- Improve Client Retention Rate
- Accumulate Advantage Over Competitors
- Boost Core Business Capabilities
- Know Your Customer Better
- Spot any Earning Scope
- Optimize the Productivity of Marketing
How ERP Solution Boosts Predictive Analytics Capabilities
We are quite certain that in order to present a more accurate picture of your company’s efficiency and progress, ERP solution gathers and displays data in real-time in collaboration with the information of the pre-existing analytics of your company. Additionally, an effective ERP solution enhances the predictive analytics potentials of business by:
Predicting the correct Forecast of Sales
For any business-oriented company, sales forecasting is such an essential tool for them to have. It enables the business owner to correctly assess and estimate the demand for their products. Not to mention. it also assists the companies to manage the inventory better. Moreover, it allows the financial official to plan & predict for the budget and the company’s growth intent in the next season.
From a number of diverse sources, a large bulk of data are able to be assembled from the repository due to the endowment of predictive analytics nowadays. As more ERP solutions are taking charge and being implemented, therefore from every perspective and individual touchpoint of business, data and figures just simply flow into the system. So this makes the ERP solution even more fitting when it comes to digging up the sales forecasting model for the business analyzing the accurate trades info.
Data-Driven Analysis for Better Decision Making
In terms of decisive decision making of business, the ERP system is known to be quite invaluable. More importantly, it helps you to obtain valuable data-driven business insights to make critical decisions for the future by analyzing the advanced analytics of the past details of your business.
And therefore with ERP in place, the company can effortlessly use those data-driven reports to make smarter decisions. The system ensures your automation and algorithms to have the latest, most updated and centralized information present out there in combination with predictive analytics.
Moreover, with the inclusion of ERP, the fear of your company making a bad decision more or less goes out of the window. And now you are actually employing the perspicacity provided by the ERP system. So, therefore, you no longer require to worry about the impact that it is going to cause your business in terms of profitability and as well as for maintaining a healthy customer relationship.
Estimating Supply Chain & Stocks
The ERP database of manufacturing items is a superb source of data for analysis. And now it plays a vital role in predictive analytics in terms of estimating the supply chain and stocks available. For any business model that deals with marketplace manufacturing goods, it is highly essential to maintain a smooth supply chain and stock management. And knowing the whereabouts of the shipment, product or its carrier is indeed crucial while trying to keep the supply chain & stock in a track.
Now with ERP, your company can expect to know the nearly accurate arrival time of your product. All thanks to the current Automatic Identification System (AIS) technology that has significantly improved over the years and makes the product’s supply chain & stock identification process more efficient than ever.
With the evolution of ERP, information on stuff like shock, ambient light, the temperature is sent by the Internet of Things (IoT) & Transmitters. And in order to predict the pattern of the supply chain, eventually, all of this is fed into algorithms that coverts as a part of the data stream.
Based on the given data, the system then tips you off about your next step. It tells you about the adjustment you need to do to achieve your target. For a successful manufacturing business, a solid supply chain has no alternative. And in this regard predictive analytics through ERP indeed keeps your supply chain in check.
Predicting Maintenance & Additional Cost
A company or business may lose thousands of dollars for not being able to predict the maintenance and unnecessary cost. Many industries rely on human intervention to predict the maintenance and extra cost related to the machinery. Whereas the ERP system integrated into them does this same thing even more efficiently.
At the end of the day, being able to predict these added costs saves a lot of money for the company. By avoiding useless but costly production further boost the profitability of the business. Suppose a piece of manufacturing equipment normally requires servicing every six months. So an ERP system alerts the person responsible for the maintenance of the equipment about this beforehand. This allows the supervisor to schedule the servicing appointment for the equipment even before it stops working and halts production. This avoids the downtime of the equipment resulting in no delay in production.
Moreover, this also enables the worker to plan for the downtime of other machines by adjusting their work during that period accordingly. This ensures the company with minimum loss of production due to equipment downtime.
ERP Solution for Better Predictive & ERP Analytics
So far we have already established the fact that predictive analytics is indeed the smartest way to include more insight and transparency into your business decisions. But at the same time, it is also true that it might take a while to acquire helpful data to sort out a definite plan from where you can actually witness the results of what it can do or is it really worth it.
Most ERP systems are entitled to provide data that can be used to execute analytical operations. An effective ERP solution tracks & collects data to analyze business better and automating the advanced analytics using that information is the next logical step for all enterprise owners.
ERP solution nowadays based on the company’s history is able to perfectly predict future ERP trends. Moreover, it also works as a company’s indicator of internal performance and progress. Not to mention its ability to gather data from buyers based on global market conditions.
One Perfect Solution for Better Business Management & Analytics
Gone are the days when you needed to manually keep all the records, stats, data & reports for future analysis of the company progress. Now there is a powerful ERP solution like WP ERP that ensures comprehensive coverage of all your business needs.
It comes with three separate yet equally essential business management modules in the form of CRM, HRM & Accounting including an extended & dedicated project management solution WP Project Manager. So it is like a four solution in one.
Moreover, the extensions built for WP ERP further boost the professional performance of your business management practice. Not to mention its advanced auto reporting feature into all its individual module that brings a new edge in the world of data analytics. Effortlessly generate any relevant report to your customer, employee or account management.
WP ERP efficiently manages your Human Resources, Customer Management as well as your company Accounts. Moreover, WP Project Manager is integrated with it to have an organized task and project management workflow. The solution also comes with the most suitable pricing plan, having the option to use its HR, CR or Accounting modules separately, only the ones you really need. Pretty convenient, right?
So how are you using the predictive analytics of your company to stay ahead in your game? Let us know in the comments below.
Great read and very descriptive!