ERP (Enterprise resource planning) What is ERP?
What is an ERP System
Enterprise
Resource Planning (ERP) is business management software that allows an
organization to leverage a suite of integrated applications. ERP systems
streamline and automate processes, creating a leaner, more accurate, and efficient
operation. ERP provides complete visibility into core business processes.
Think of an
ERP system as the brain of your company's technology system. In the human body,
the brain controls all areas of your body by telling them what to do and
ensuring they all work together. The human body is unable to function and a retail company cannot function without a proper ERP system. It integrates
all facets of a business including product development, manufacturing,
marketing, and sales. By synchronizing all of these areas, businesses are able
to gain visibility, increase productivity and operational efficiency, reduce
costs and enhance competitiveness.
§ Make your business
more agile: In a rapidly evolving business climate, being
able to respond to change is essential. A good ERP system is flexible, modular, and scalable enough to adapt to shifting market dynamics and changing customer
needs. You can initially implement specific applications that make sense now
and add on seamlessly integrated applications as needed as your business grows.
§ Drastically
increase efficiency and productivity: Inefficient
spreadsheets, manual workflows, and outdated software can inhibit your business
growth. An ERP system can streamline your entire organization and put your data
all in one place, enabling more accurate reporting and a more efficient,
collaboration-based, and data-driven work environment.
§ Save on unnecessary
costs: Running your business with an ERP system creates efficiencies that
make your business leaner as it grows. Many businesses report that they are
able to expand without adding additional staff or IT costs. The cost of
implementing an ERP system is easily eclipsed by the ROI of a more efficient,
fully optimized business environment.
§ Improve security
and accessibility: You can reduce your risk and hardware
costs by moving your ERP to the cloud. Embrace the future of information
systems with a modern ERP hosted in a secure cloud. Moving your ERP
applications to the cloud allows you to scale, extend and upgrade quickly. It
also increases visibility and accessibility even further, taking full advantage
of an ERP system’s capabilities.
§ Gain a professional
partner: When you upgrade to an ERP system, you also gain
the partnership of your ERP implementation provider and all the support – from
implementation and training to software support to community membership – that
they have to offer. Some ERP systems have dedicated user groups and communities
that open up entire networks of industry innovators and dynamic brands.
§ Grow your business: An ERP system
can eliminate inefficiencies, wasted time, and wasted resources, empowering your
business to thrive and flourish. If you’ve been burdened by an inability to
keep up with demand because you’re limited by conventional systems or stagnant
legacy ERP systems, upgrading to a modern ERP system frees your business to
realize its true growth potential.
5 Reasons Why ERP Required
1) Standardization of Software:- With an unmanaged system, various business processes within an
organization utilize disparate applications to manage similar operations. This
can lead to chaotic data transfer, time-consuming processes, and security gaps.
An ERP system binds together all these
processes with a unified interface. This makes it easy for users to access data
with a centralized dashboard and features like access control and increased
data security.
2)
Better Accounting and Financial Reporting:-
Keeping track of your financials is a critical factor in
determining your success through a growth phase, but as your company grows the
complexity of transactions may seem overwhelming without an efficient
centralized system.
Manual data entry significantly lessens your
productivity, but an integrated ERP application that keeps track of your
incoming and outgoing transactions can negate the need for repetitive data
entry work and increase the visibility of crucial operational data through a
centralized platform.
3)
Faster Response Times:- As you start gaining traction in the market and your reputation
increases, your ability to improve your service delivery could act as a key
differentiator from your competition. To deliver better customer service, your
front-line executives and sales team need maximum access to all information
across all departments, the systems need to be integrated into one centralized
unit.
Although most companies today are already utilizing accounting
software, the inability of the software to be successfully integrated into
other business processes renders many solutions ineffective. Most ERP software today
has built-in accounting features that eliminate the need to do duplicate work
and manual data entry.
4)
Regulatory Compliance and Security:- Integrated
ERP software can help you ensure that back-office operations are in sync with
the regulatory rules of the manufacturing industry. Most ERP solution providers
monitor compliance and regulatory changes and keep updating their features to
help you meet the new requirements.
Not only does Enterprise Resource
Planning (ERP) software simplify data processing and streamline your internal
processes, it also enhances your security with features like regulated data
access and in-built firewall systems. The integration of multiple processes
into one unified system, also makes it easier for your system administrators to
control and monitor the security of your software.
5)
Mobility and Flexibility:- Through ERP software, data from various departments of an organization
is streamlined into a unified platform. As modern workplace trends like BYOD
become more popular, the need for flexibility in enterprise software is an
essential factor when making software investment choices. ERP solutions today can process multiple functions by leveraging a
centralized database to provide accurate information to any user, anywhere in
the world, on any device. Remote access to the database and critical numbers
saves time and effort and ensures the delivery of quality work within
deadlines.
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