Productivity is crucial for the success and sustainability of a state-owned enterprise (SOE). Differing from a multinational corporation, it is a government-owned entity that drives economic growth by providing essential goods and services. If productivity in SOEs is efficient, there will be optimal resource utilization, revenue generation, and public mandate fulfillment. Moreover, productivity improvements can lead to operational efficiency, cost-effectiveness, and competitiveness.
As state-owned enterprises are funded by taxpayers, productivity gains are vital to ensure the responsible use of public funds. Therefore, enhancing SOEs’ productivity can promote economic development and public welfare. Other than that, it can also deliver value to society.
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The Definition of State-Owned Enterprise
State-owned enterprises are legal entities established by a government to engage in commercial activities on its behalf. They can be owned by the government wholly or partially. Examples of SOEs in Singapore are Temasek Holdings, SGInnovate, and Surbana Jurong. Unlike listed companies with government entities as shareholders, SOEs are considered government-owned corporations and are subject to laws and regulations governing their operations.
A state-owned enterprise can be created through a process called corporatization. It is where a government agency is converted into a for-profit business. Although, the SOE may still operate with government goals in mind. While SOEs are intended to generate profits, some may not be profitable and may even operate at a loss. In such cases, the government may provide funding to keep them operational, especially if they are considered to be critical to a country’s infrastructure.
What is ERP?
ERP, or Enterprise Resource Planning, is a software application used by organizations or enterprises to manage and integrate their essential business activities. For example, accounting, inventory management, and warehouse operations. With its automated and well-organized system that facilitates business operations, an ERP system streamlines business operations. Additionally, this enables seamless coordination between different departments.
As ERP offers a comprehensive set of features to automate various business processes, it reduces human errors. Highly customizable to fit customer preferences, the system covers multiple aspects of business operations. This includes HR, sales, accounting, CRM, inventory, manufacturing, and purchasing systems. Thus, ERP serves as a valuable tool for SOEs to enhance their overall productivity and competitiveness by increasing operational efficiency.
Also Read: 17 Best ERP Software in Singapore You Should Know in 2023
Benefits of ERP for State-Owned Enterprise
ERP is a cloud-based system that offers a diverse range of solutions, including accounting, CRM, HRM, procurement, inventory, warehouse, and manufacturing systems. These solutions are all integrated into a single platform. The ERP system can enhance a state-owned enterprise’s productivity management, providing it with benefits. Thus, there are several benefits of ERP for managing state-owned enterprise productivity.
Enhanced productivity
Business process automation in ERP can significantly enhance productivity by automating labor-intensive manual tasks. This streamlines the business management systems and results in time and resource savings for companies. With automation, repetitive tasks are completed efficiently, allowing employees to shift their focus to strategic and value-added activities.
Additionally, automation also minimizes the risk of human error, leading to improved accuracy and reliability in business processes. Embracing business process automation can result in increased productivity, cost savings, and most importantly, improved overall performance for companies of all sizes. In other words, ERP can unlock the full potential of a state-owned enterprise.
Better Planning and Forecasting
Effective planning and forecasting are crucial for business growth as it requires accurate and up-to-date data in a unified system for precise decision-making. The real-time data analysis feature of ERP system enables trend identification and valuable insights. This eliminates the reliance on outdated or incomplete data that can lead to costly mistakes. Therefore, the ERP empowers state-owned enterprise to drive forward with precision and agility.
Improved Efficiency
The Enterprise Resource Planning (ERP) system offers significant advantages in enhancing business efficiency. This is done through the automation of labor-intensive and time-consuming manual tasks. The system automates manual activities such as bookkeeping, inventory management, and raw material reordering. Therefore, ERP provides the user with comprehensive visibility and control over all operational processes.
Improved financial management
ERP solutions also enable hassle-free financial management, generating accurate financial statements in minutes instead of hours. With these efficient tools, you can streamline your financial management process, easily generating comprehensive financial statements with precise calculations. Thus, there will be no stress of manual calculations and you can enjoy more time for important tasks.
Conclusion
To conclude, the Enterprise Resource Planning system plays a pivotal role in managing state-owned enterprise productivity. With its robust tools and functionalities, SOEs can gain advantageous benefits which enhance their productivity management. There are many ERP systems out there. However, we highly recommend HashMicro’s ERP system, Hash CORE ERP. With it, SOEs can effectively manage their resources, optimize workflows, and enhance communication.
In addition, HashMicro offers reasonable prices and a Productivity Solutions Grant up to 50%. Not only that, but HashMicro also offers a free demo of the product for those who are still unfamiliar with how the system works and want to learn more about our product. For more information about Hash CORE ERP, you can kindly contact us by clicking here.
