Business intelligence tools, especially ERP software, were designed to help companies increase revenue, operational efficiencies, and profit through deeper insights into data. But plans and designs do not always work as imagined; so these theories must be tested. A February 2014 study by IDG Research closely examined how Mid Market companies are affected by the data quality, usability, accessibility, and mobility in their Mid Market ERP systems. The study examined the following factors:
- The accessibility and usability of business information in medium-sized companies.
- How ERP usage improves access to and usability of business information.
- Whether companies with better data accessibility/usability generally have higher revenue.
- growth, profitability, or sales per employee.
- The quality of business information in medium-sized companies.
- How Mid Market ERP software improves insight into business information.
- If companies with better insight into business information generally have higher revenue.
- Growth, profitability, sales/employee.
The standing theory is that better Mid Market ERP data means greater revenue growth, increased profitability, increase operational efficiency, and faster time to market; the IDG research validated this theory with key findings including:
- Those with more effective data grow 35% faster.
- Those with more usable data increase productivity by 10%.
- Those with mobile access to data increase sales of new products by 5%.
- Those with mobile access to data sell 3% more to new customers.
- Those with better data improve consistent quality delivery to customers by 9%.
- Those with better intelligence are 4 times more likely to optimize inventory levels.
- Those with better intelligence are 2.2% more profitable.
- More intelligent data means more revenue.
- A 20% improvement in data accessibility will result in a 3% increase in sales to new customers.
This study makes it clear; mid market companies who are looking to drive growth and improve overall performance must utilize an ERP system built to maximize the use of their data. A system with more usable and accessible data will surely provide a significant ROI and help an enterprise grow effectively in their respective industry if leveraged correctly. See the full report and findings of this study here.
by Jeanne Lee