Although confinement has driven the digitization of many businesses, the truth is that digital transformation is still a pending issue for a high percentage of small and medium-sized companies. The main reasons are two: on the one hand, the fear of facing the unknown and, secondly, the economic outlay involved in undertaking the process of digital transformation. This second reason is what has led the Government to announce the implementation of the SME Digitization Plan 2021-2025, with the aim of encouraging digitization in the business sector.
Specifically, 4,656 million euros will be invested for SMEs that carry out their activity in tourism, industry and electronic commerce. This initiative will be an incentive for those companies that include among their purposes the automation of processes, in order to improve productivity, reduce costs and become a highly competitive business.
Digital transformation with Microsoft Dynamics 365 Business Central
The first thing that should be clarified is that the digitization process does not imply going from nothing to everything, but rather it is a gradual process. There are different business management solutions on the market to meet the specific needs of each business. The essential thing is to find the right software.
For small and medium businesses, Microsoft Dynamics 365 Business Central (formerly known as Microsoft Dynamics Navision) is a solution that offers high flexibility to adapt to changes and to cope with growth.
What are the functionalities of Dynamics 365
This ERP includes functionalities that cover all departments of the company, which allows comprehensive planning of business resources: finance, personnel management, manufacturing, supply chain, customer service, purchasing, marketing, supply chain management , business intelligence and reports. Unlike other legacy systems, Microsoft Dynamics 365 Central Business is characterized by its scalability, and the collection and analysis of data in real time, which allows companies to make the best decisions.
Main functionalities that SMEs need
Although each company requires specific solutions based on their needs, there are modules that coincide in most of these businesses:
With this module, the procedures related to receipts are automated and control is kept of both the issuance and receipt of invoices. This module connects with the accounting module.
This module is especially necessary for those companies that have to keep their accounting books up to date and Submit taxes electronically before the Tax Agency. Reports are generated to know the financial accounts.
This functionality allows you to keep the processes related to purchases updated, such as the supply of raw materials in the case of manufacturing companies or the acquisition of products. The list of suppliers from whom products are purchased is kept updated in the database.
This module collects everything related to the commercial process: budgets, delivery notes, order tracking, year-end closings; as well as reports with the commercial operations that have been carried out, to have all the data within reach and updated.
This module automatically manages the reception of stocks, as well as their storage and exit. The company will gain a comprehensive view of inventory, using stock valuation methods, as well as moving items between locations and keeping track of quantities on hand.
In addition, it is possible to make predictions of stock replacements through the suggestions that the system integrates, based on business intelligence.
Relationship with customers
A special section is that of customers, because currently it is essential to maintain close and direct contact with customers, to find out their interests, their needs, and their perception of the company. In such a competitive market, the differentiating factor is found in the link established between the brand and the customer. It is becoming more and more obvious that we buy based on the perception we have of the brand and in those establishments with which we share values.
With the customer module, marketing strategies can be carried out, with the advantage of being able to segment the different customer profiles and store the information related to the interactions between users and the business. Specifically, with Microsoft Dynamics Nav you can access customer and supplier information in real time; observe potential customers and carry out the necessary follow-ups and interactions.
With this module, companies have the capacity to offer each client what they need, optimizing income and maintaining an overview of contracts, in order to determine discounts, dates or availability.
What do SMEs look for to choose an ERP
When choosing an ERP, there are aspects that small and medium-sized companies take into account:
- Productivity increase. With the automation of processes it is possible to eliminate the repetition of tasks. In this way, those tasks that contribute less value to the company are reduced, and those of greater value are prioritized.
- Centralization of information. Data is very valuable for companies, therefore, it is one of the characteristics that they pay most attention to when hiring software. Companies seek to obtain information from the different departments in real time and for this information to be centralized, to be able to access it from any device and at any time.
- Easy to use. Simplicity is sought, designs that are intuitive and easy to use.
- Cost reduction in time and resources. One of the main advantages of software like Dynamics 365 is its ability to reduce costs, both in terms of time and resources. This is achieved with the automation and integration of processes.
With all these advantages, continuing to carry out procedures manually entails a loss of time and productivity, while multiplying the possibilities of error. It is time to take the step towards digitization, and for the choice to be the right one, it is essential to have the advice of a consultancy firm specialized in ERP.
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