10 January 2023
Benefits of managing your SME with the balanced scorecard
An SME has a considerable number of internal processes that need to be constantly monitored. Surely, you already know that an ERP is a software solution that enables you to increase control over all the procedures that are carried out in the company, regardless of the department. However, if a similar system has not been implemented in your business, you may not be aware of what a balanced scorecard is and how it works. Is that your case? If so, stay with us, because we'll tell you everything you need to know about this solution.
In the following sections we explain the benefits of an ERP balanced scorecard, what it is used for and its impact on managing an SME. So you are left with no doubts, we will first present what it is and then address its benefits and functions. Let's get to it!
What is an ERP balanced scorecard and what is it for?
An ERP balanced scorecard is a monitoring tool used by companies to simplify managers' functions. It provides critical data on the business' performance relating to various departments. For example, it includes financial information, product stock, level of fulfilment of goals and other KPIs.
The aim of the balanced scorecard is to provide an overview of the company's status and that of all its processes. This is commonly referred to as a 360-degree view of SMEs.
To better understand this, think about the dashboard of a plane. Without a doubt, those of us who are clueless will only see a bunch of lights, indicators and buttons. However, the dashboard provides the pilot and co-pilot all the information they need to make the best decisions and successfully reach the destination.
The pilot of an SME is the CEO and the co-pilots are the rest of department managers. For them, the balanced scorecard is the ally that will enable them to successfully pilot the company, meeting the set goals.
What data does a balanced scorecard provide?
The KPIs of a balanced scorecard may differ according to the type of company. However, here is some typical data appearing on them:
- Conversion rate.
- Financial indicators, such as collections and payments.
- Stock control.
- Achieved goals display.
All data is presented in real time.
CASE STUDY: GRV Power
An implementation of SAP Business One for intelligent warehouse management.
The benefits of a balanced scorecard in an SME
When a balanced scorecard is implemented in an SME, improvements can be seen in a short time. Let's see in further depth some of the benefits provided by this tool in an ERP.
Improved decision-making
We have already touched upon this benefit, but it is without a doubt one of the most significant. Improving the decision-making process is the goal of any management team. And there is nothing better than having quality data in order to achieve it.
The balanced scorecard does exactly so: it provides managers with all the information they require to make the best decisions.
Greater business return
Data is becoming increasingly important for companies in multiple sectors. The problem is that the amount of information collected and processed is overwhelming. The aim of the balanced scorecard is sorting the chaos, in addition to applying analytics and generating reports in real time.
All of this translates into increased productivity and full customer satisfaction.Or, in other words, a greater business return.
A closer relationship with your customers
The information provided by an ERP balanced scorecard has long since ceased to be merely financial. Now, you can find out more about customers, their behaviour and their needs. This enables SMEs to act accordingly when it comes to reinforcing relationships or undertaking more effective marketing campaigns.
Committing to teamwork
Implementing a balanced scorecard also improves teamwork. Access to the information provided by the ERP can be easily shared with the departments involved in order to make the necessary changes or optimise a process.
What's relevant in this case is that the ERP does not only provide data and tools to the company's managers, but also to all employees. This enables all parties involved in a process to work in unison, using the same software.
Cost savings
The last benefit we are going to highlight is cost savings. A balanced scorecard saves a lot of time, which is one of the most precious assets in a company. Rapid and accurate course changes have a positive impact on the company's processes.
In addition, ERP systems have been designed to optimise virtually all the tasks performed within an SME. Cost savings can be experienced as soon as all parties get the most out of this management software.
The balanced scorecard for your SME is in the SAP Business One ERP
As we have seen, using a balanced scorecard will help you have all the required information about your SME in real time. Few functions have such an effect on the success of a business like this. But where can you find the best balanced scorecard? The answer is simple: SAP Business One, the leading ERP in all sectors.
SAP Business One is a comprehensive management tool with a powerful balanced scorecard. It provides all kind of relevant data on the functioning of your company, as well as reports and analyses that help make quick and accurate decisions. And what is the next step for your SME?
You need a reliable partner to support you throughout the implementation process. SEIDOR and SAP Business One make up a winning team. We offer you decades of experience obtained from working with the thousands of customers who have trusted in us. Shall we talk?
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