Although confinement has boosted the digitization of many businesses, the truth is that digital transformation is still a pending subject for a high percentage of small and medium-sized companies. There are two main reasons for this: on the one hand, the fear of facing the unknown and, secondly, the financial outlay involved in undertaking the digital transformation process. This second reason is what has led the Government to announce the launch of the SME Digitalization Plan 2021-2025, with the aim of encouraging digitalization in the business sector.
Specifically, 4,656 million euros will be invested for SMEs that develop their activity in tourism, industry and e-commerce. This initiative will be an incentive for those companies that have 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 to clarify is that the digitization process does not imply going from nothing to everything, but 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-sized companies, 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 company departments, enabling comprehensive enterprise resource planning: finance, workforce management, manufacturing, supply chain, customer service, purchasing, marketing, supply chain management, business intelligence and reporting. Unlike other legacy systems, Microsoft Dynamics 365 Central Business is characterized by its scalability, and real-time data collection and analysis, allowing companies to make the best decisions.
Main functionalities required by SMEs
Although each company requires specific solutions depending on its needs, there are modules that coincide in most of these businesses:
This module automates the procedures related to receipts and keeps track of both the issuance and receipt of invoices. This module is connected to the accounting module.
This module is especially necessary for those companies that have to keep their accounting books up to date and file taxes telematically with the Tax Agency. Reports are generated to know the financial accounts.
This functionality allows keeping updated the processes related to purchases, such as the procurement 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 up to date 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, in order to have all the data within reach and updated.
This module automatically manages the receipt of stock, as well as its storage and issue. The company will get a comprehensive view of inventory by using stock valuation methods, as well as moving items between locations and keeping track of quantities on hand.
In addition, stock replenishment predictions can be made using the system’s built-in suggestions based on business intelligence.
Relationship with customers
A special section is that of customers, because nowadays it is essential to maintain close and direct contact with customers, to know their interests, their needs, and their perception of the company. In such a competitive market, the differentiating factor lies in the link established between the brand and the customer. It is increasingly 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 ability to offer each customer what they need, optimizing revenue and maintaining an overview of contracts, in order to determine discounts, dates or availability.
What do SMEs look for when choosing an ERP?
When it comes to choosing an ERP, there are aspects that small and medium-sized companies take into account:
- Increased productivity. Process automation eliminates the repetition of tasks. In this way, 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, which is why it is one of the features that most companies focus on when contracting software. Companies seek to obtain information from different departments in real time and that this information is centralized, so that it can be accessed from any device and at any time.
- Ease of use. Simplicity is sought, designs that are intuitive and easy to use.
- Cost savings in time and resources. One of the main advantages of software such as Dynamics 365 is its ability to reduce costs, both in terms of time and resources. This is achieved through the automation and integration of processes.
With all these advantages, continuing to manage things manually leads to a loss of time and productivity, while the chances of error are multiplied. It is time to take the step towards digitization, and to make the right choice, it is essential to have the advice of an ERP consulting firm.
At Emiral we know how much your company is worth, whether it is small, medium or large. That’s why we want to offer you the best ERP management solutions to keep your business growing.
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