Visibility: The Daily Definition
What is visibility?
Visibility, in ERP-speak, refers to how clearly a business owner can assess the effectiveness of their operations. Whether it’s assessing the overall health of a company or how much output they’re accomplishing each day, visibility is the magnifying glass your business needs in order to fully understand what works for your efficiency, and what doesn’t.
In order to grasp the importance of visibility, we have to understand the threats of poor visibility first. Let’s say there’s an up-and-coming custom t-shirt business in a college town. They started out as a small operation, but demand is starting to pick up, and they have more orders on their hands than they know what to do with.
Up until this point, they’ve been tracking their orders in an overpopulated Excel sheet that the entire staff shares. Without an ERP solution, these numbers only symbolize individual orders. They can’t provide any insight into the cost that goes into creating each order, or order processing time. Staff at this company is left with only basic metrics that do nothing to inform business strategy, or help them make bigger picture decisions. Once they adopt an ERP system, they’ll have a much better idea about what they can do to sustain their growth.
Our two cents:
Adopting an ERP solution is one stop on the way to visibility, but that’s not the final one. It’s important to remember that purposeful reporting and visibility go hand in hand. Creating and running well-informed reports is key to understanding where your company stands.
By determining exactly which metrics you’re looking for, you’ll have a much clearer view into your productivity and money-making sectors. After reporting, it can also be helpful to set tangible goals for your company. This can include level of revenue for each month, a number of new customers gained, etc. With your improved view of your operations, you can assess your company’s growth in meaningful ways.