Digital technology has never been more prevalent in the business world than it is today. Its use has steadily increased to the point where few professions do not use digital technology in some capacity.

Large businesses are often the first to implement expensive cutting edge technologies, but companies of all sizes use technological tools to help them grow. In fact, a study from earlier this year demonstrated a correlation between digital engagement and the successful growth of small businesses.

ERPs make for a suitable example of how technological engagement benefits a small business. We’ve written extensively on the benefits ERPs provide to small companies, including better operational efficiency, more accurate reporting and a higher level of customer satisfaction.

In a separate study published by IFS, the connection between ERPs and small business growth was further examined. The study polled 200 decision-makers from companies of various sizes to see how prepared they were to implement new technologies, and how well they used technology to formulate their strategy.

In a synopsis of the report provided of Supply Chain Dive, Kate Patrick notes, “There is a ‘strong correlation’ between companies that said ERPs ‘prepare them well for digital transformation and those who said their software prepared them well to consume IoT data.’”

IoT data is becoming a valuable resource for decision makers looking to find new opportunities and understand trends. “A key finding from the study showed that, in order for companies to effectively utilize IoT, they need comprehensive ERP systems.”

The study helps to highlight the multi-faceted advantages provided by effective ERPs. Beyond helping to streamline day-to-day tasks, the systems make vital information more accessible, giving decision makers the information they require to determine the direction of their organization.