An MBA's Guide To Managing Resources Through Automation

Enterprise resource planning (ERP) has traditionally been considered as a tool limited to very large businesses with an abundance of resources to move around. That time has since passed, leaving behind a legacy of clunky software that was built on the pillar of big business. Newer ERP systems have since evolved to adapt to the demands of more agile enterprises, introducing concepts such as cloud deployment and compartmentalized software.

A few of the trends as of late have also allowed small businesses to have a piece of the pie and enjoy the same benefits that their larger counterparts have thrived with for decades. It’s time we discuss a few of the influencing factors that have made this possible.

No On-Site Infrastructure Required

The cloud has done something monumental for small businesses. Instead of having to invest in the infrastructure necessary to host business-scale applications, service providers are now taking all of the grunt work into their own hands by hosting these applications in their data centers. With a commoditized approach to infrastructure, applications can now scale down to the needs of businesses with fewer than 500 employees without losing any of their features. ERP tools, being data-heavy behemoths, have experienced a much-needed paradigm shift into the cloud as a result of the demand for more affordable solutions.

The reduced price of bandwitdth and storage has also played a significant contributing role in the proliferation of data-heavy applications. All of these factors have created a perfect storm that has forever broken the chains that have bound software innovation in ERP systems.

Automation Makes Maintenance Simpler

Although there have been massive improvements that have allowed service providers to breach the barrier between large and small enterprises, there’s still the problem of nightmarish maintenance. Anyone who has experience with ERP implementations understands how many things can go wrong when applying patches, updates, upgrades, or other changes that could threaten the interconnectivity of the platform. Interoperable suites of various sizes often come with a great amount of complications that usually require a skillful IT department to manage or mitigate. Even then, it may take some time before the system is back up and running, which is not acceptable for a growing business, let alone an established one with millions of customers.

Platforms that automate ERP testing, patching, updating and upgrading processes make it much simpler for both large and small operators to deploy and maintain their systems without the headaches of manually testing for errors. This is done by consolidating any discrepancies in the application code while an update is happening, ensuring that data integrity whilst the new version of the platform rolls out. Even businesses with capable IT departments may feel intimidated by the prospect of keeping an ERP up to date. Enterprise automation makes sure that this is no longer the case and both are on a level playing field for those with capable IT staff and those that need assistance.

Sensors and The Internet of Things

When talking about enterprise resource management, people often get carried away with ERP and its many wonders. However, the Internet-of-Things (IoT) has also led the charge when it comes to changing the way we do business. A combination of sensors and low-power broadcasting equipment can do a lot of things that we have either couldn’t do at all or relied on human input for. Self-driving cars and trucks, for example, are transforming into promising technologies that small courier services could benefit from greatly. Although the technology isn’t mature at this time, it’s beginning to show signs of making forays into the logistics industry.

Sensor technology is also being used in fleet management, in which various environmental conditions are tracked by a sensor mounted inside vehicles. Eventually, most companies shipping perishable or fragile goods will be tracking their shipments through this technology in one form or another to ensure that the proper conditions are met so that the product can arrive intact at its final destination.

The advent of wearable technology is creating great opportunities for businesses to understand the needs of their employees, ensuring that their stress levels don’t cause burnout and they get the right amount of breaks. As this kind of out-of-the-box thinking continues, we will only see more businesses using IoT and general sensor technology to accomplish their goals.

The Future Is Today

If there’s anything to take away from all this, it’s that we’re innovating new technologies faster than we can find uses for them in the business world. At first sight, that may sound like we’re rushing technologies through an assembly line, but what it really means is that there’s a lot of untapped potential in businesses. Enterprise automation, in one way or another, is going to play a monumental role in ensuring that the most innovative businesses have a way to practice what they do without tripping over themselves maintaining a clunky “iron maiden” of software that teleported from the late 90s. This includes both innovators and those who will be using those innovations to better their businesses. Everything from top to bottom will have to streamline the way they handle their data so that they can focus more on accomplishing the purposes of their businesses rather than deal with broken code.
 
Back
Top