Top 8 benefits of ERP software in the real estate industry
In today’s digital world, it is found that the majority of the construction and real estate businesses are operating traditionally. According to a construction-industry survey conducted by JBKnowledge, it was identified that the workflows that are most dependant on software: accounting (85%), estimating (60%), project management (50%) and scheduling (50%), are the same workflows that highly depend on spreadsheets, highlighting a significant operational and financial risks in the real estate & construction business.
To eliminate human blunders and slower productivity that occur in the real estate & construction business processes, Enterprise Resource Planning (ERP) software needs to be integrated. ERP streamlines and automates all the business processes such as sales, HR, procurement, inventory, etc., with the help of the latest technology to provide insightful and meaningful data/information.
In this article, we have discussed a few benefits of ERP software that will help real estate and construction business owners understand the importance of its integration into their business.
1. Automation of manual tasks
An ERP software can help to automate traditional business processes and boost the productivity of the employees in an organisation.
For instance, if the marketing department has to wait for the customer data from the sales department, to implement new marketing strategies, it slows down the overall productivity of the process.
With an ERP system in place, all the relevant data can be stored and updated in one centralised platform that is accessible to everyone. Utilising the best ERP software eliminates manual tracking of the data, breaks the traditional silos within an organisation and improves the efficiency of the business processes.
2. Centralized data storage and management
Every business process involved in a real estate or construction project must take place concurrently to complete the project. To facilitate this, ERP software provides a unified, secured platform for easy storage and management of the data. Business owners can dynamically track and analyse the project data which aids them to calculate the financial costs incurred accurately. The simultaneous and efficient tracking benefits of the ERP software improves project efficiency and productivity.
3. CRM for effective sales and marketing strategy implementation
Sales and Marketing play a vital role in the success of an organisation. Implementation of effective sales and marketing strategies can fulfil customer expectations and create a loyal customer base. A real estate ERP software provides a CRM that aids the marketing and sales professionals to store and track all the data related to the potential customers on a real-time basis.
The goal of any real estate or construction business is to deliver quality work and meet customer demands on time. Without utilising the benefits of the ERP software, sales and marketing executives may have a hard time tracking the customer data and implementing effective marketing and sales strategies.
4. Overall reduction in project cost
To secure a new project from the clients, real estate and construction companies must provide an accurate budget estimate and timeline required to complete the project. Based on these two essential factors along with the project design, company’s reputation etc, the clients would offer the bid to the respective company.
Customised ERP software can predict accurate project expenditure and the timeline required to complete the project. They ensure that the actual cost of the project does not exceed much of the projected cost. In this way, the construction or the real estate companies can efficiently utilise the resources and manpower within the allotted budget and time frame.
5. Data-driven decision making
In any business, the decisions which are made based on the data will be more accurate and effective. In today’s data-driven world, real estate and construction businesses need to make use of secure data storage and management systems.
ERP software ensures that the users are provided with the data through business intelligence systems which gets updated throughout the project lifecycle in real-time. A business intelligence module provides deep project insights and allows business owners to track the data dynamically. This aids the business owners and project managers to make timely and accurate data-driven decisions.
6. High Return On Investment (ROI)
Investing in a new software like ERP must ensure high ROI, measured in terms of tangible and intangible benefits. After the initial integration of the software, it is advisable to wait for 2-3 years to witness a substantial increase in the ROI.
- Implementing an ERP software can incur the following costs: cost of the software, software upgrade investment, consultancy investment, initial implementation cost, investment on the internal staff.
- A few tangible benefits after the implementation of the ERP software include minimisation of the overall operating costs, increased inventory turns or billable hours and a decrease in material costs.
- A few intangible benefits include improved staff retention, increased efficiency and strategic planning.
ROI on the ERP software can be calculated using the below formula:
7. Optimised project management
Numerous reputed builders and construction companies have faced downfall due to improper planning and organisation of the project. Improper planning can cost a fortune to the company or result in the completion of a substandard project. Delayed or postponed projects due to poor planning can also tarnish the company’s reputation.
Before project initialization, it is necessary to accurately map the resources such as raw materials, labour, engineers etc that are required for the project completion. A real estate and construction ERP software can be used to track the procurement of the resources and the financial cost incurred during this process. Project managers can effectively allot the budget and allocate the resources using a single platform. Achieving the project deadlines becomes easier with the benefits of ERP software, resulting in increased productivity and cost reduction.
8. Effective communication and collaboration
A typical real estate or construction business consists of on-site & off-site employees. For smooth functioning of business operations, the company’s employees must utilise effective communication mediums. To bridge this gap, ERP software allows the employees to make use of its in-built chat and video applications for effective communication and collaboration from all parties. The ERP software’s real-time data tracking benefits allows the employees to stay updated and communicate seamlessly about the ongoings of the project.
Final Thoughts
Now that you know the importance and benefits of ERP software, the next logical step would be to integrate it into your real estate & construction business.
Our ERP software, In4Suite®, specifically aids real estate developers to overcome business challenges by automating repetitive tasks and tracking the data on a real-time basis. If you are looking for an ERP for your business, talk to our team and know how we can increase your revenue and reduce operational costs.
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