Last week, we were introduced to the basics of ERP systems and went through an interactive class activity that showed us how information gets passed through various organizational departments with the silo effect in place.
The importance of having an ERP system isn’t just to ensure faster communication between departments, but how the departments can access core data faster and with greater accuracy. Nowadays, incoming data can change rapidly and customers often times expect organizations to respond quickly to their needs. Then add the fact that business is now essentially non-stop and comes from all over the world (such as e-commerce), having a sound ERP system in place helps to keep the everyday operational business processes flowing smoothly.
The insurance industry is one type of business that can really benefit from ERP systems. In order to stay competitive with others offering similar products, an insurance company could offer a more customized policy with better rates for customers through an effective ERP system. It’s also possible to see changing purchasing trends in order to come up with new products or target specific types of people for potential new customers. These are common challenges facing the insurance industry today.