Most businesses have silos in their back office. This can lead to communication breakdowns, a lack of coordination, and a downswing in productivity.
A properly implemented ERP (Enterprise Resource Planning) system can help break down these silos and improve communication between departments.
Read on to find out how!
The Restraining Force of Working in Silos
Working in silos can be a very comfortable place to be.
You know your role, you know your team, and you know what’s expected of you.
But while it may be comfortable, it’s not always the most effective way to work.
It’s okay for organisations to have different departments that work independently from each other. But what is not okay is when those departments start to work in silos.
Silos occur when departments or teams start to operate independently from each other, without any collaboration or communication.
This can lead to a number of problems, such as:
- Inefficiencies: when departments are working in silos, it can lead to duplication of effort and wasted time and resources.
- Miscommunication: without communication between departments, there is a greater risk of miscommunication and errors.
- Lack of innovation: when departments are not sharing ideas or working together, it can stifle innovation and creativity.
Apparently, the silo mentality does more harm to the organisation than good.
It hampers communication, collaboration and innovation, and ultimately leads to a decline in productivity. It limits the ability of employees and departments to see the bigger picture and understand how their work fits into the overall goals of the organisation.
It also creates an environment where departmental rivalries can flourish, and where turf wars are fought over who has the better ideas or the more efficient processes.
This is the restraining force of silos. And you need to break it down.
The Unifying Power of an ERP System
An ERP system provides a centralised platform for all departments to access and share information. This helps to promote communication and collaboration between departments, as well as increase efficiencies and cost savings.
An ERP system gives employees and departments the ability to see how their work fits into the bigger picture and understand how their work impacts other individuals or groups in the organisation.
It also encourages collaboration and innovation, as employees are able to share best practices and ideas with each other.
And because an ERP system is designed to streamline processes and increase efficiencies, it can help reduce costs for the organisation overall.
So how can you break down silos in your organisation using an ERP system? Here are a few tips:
1. Use ERP to encourage communication and collaboration
The most innovative ERP systems such as NetSuite are built to encourage communication and collaboration between employees.
With features such as real-time dashboards, alerts, and notifications, employees are able to stay up-to-date with what’s happening in other departments.
This helps to promote a culture of transparency and collaboration, as well as increase efficiencies by preventing duplication of effort.
2. Use ERP to improve process efficiency
An ERP system can help streamline processes and improve efficiencies across the organisation. By automating manual tasks and consolidating information into a centralised platform, employees are able to work more efficiently and effectively.
This can lead to big cost savings for the organisation, as well as reduce errors and improve quality control.
3. Use ERP to make better decisions
An ERP system provides employees with the ability to access real-time data and analytics. This helps to improve decision making by giving both employees and management the ability to see the big picture.
It also helps to promote a culture of data-driven decision making, as well as increase transparency and accountability.
4. Use ERP to foster innovation
Encourage employees to share best practices and ideas with each other through the ERP system. This will help promote innovation and creativity.
Instead of encouraging cross-departmental rivalries, an ERP system can help build a culture of cooperation and collaboration.
How? When departments share ideas, they work together to find the best solution.
5. Use ERP to measure success
An ERP system can help you measure success by providing visibility into key performance indicators (KPIs).
When you have a system that tracks performance and measures progress, you’re able to identify areas of improvement and potential areas of opportunity.
This helps to increase accountability and promote a culture of continuous improvement, as employees are constantly looking for ways to improve upon previous successes.
The Bottom Line
Working in silos is bad for the health of your organisation.
But an ERP system can help break down silos in the back office by promoting communication and collaboration, improving process efficiency, making better decisions, fostering innovation, and measuring success.
When you have a system that unifies all departments, you’re able to create a more cohesive organisation that is better able to adapt and respond to change. And that’s what you need to succeed in today’s ever-changing business landscape; that is what you need to be efficient and innovative.
If you’d like to learn more about how an ERP system can help break down silos in your organisation, contact us today.