Enterprise resource planning (ERP) is business process management software which enables the organisations to deploy a system of unified applications to systematise the back office functions associated with technology, services and human resources. ERP software incorporates all the aspects of an operation comprising of product planning, development, manufacturing, sales and marketing. The ERP software is regarded as an enterprise application and is aimed to fulfil the business requirements of large organisations, and it often needs devoted teams to adapt and analyse the data and to handle promotions and installations. On the other hand, small business ERP applications are made for lightweight business management software solutions, modified especially for the business industry you work for.
The ERP software comprises of various enterprise software modules which are purchased individually. The software is created to meet the needs and technical requirements of the organisations. Every ERP module concentrates on one area of the business processes, like product development or marketing. An organisation can use the ERP software to regulate the back office activities and various other tasks like, supply chain management, improve accuracy of financial data, reduce redundant tasks, lower purchasing costs and many others. Some of the most commonly used ERP modules are product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.
With the ERP module gaining momentum, the software applications developed to help business managers implement ERP in many other business activities as well. The basic objective of using this software is to deliver one central repository for all the relevant information which is shared by multiple ERP aspects to expand the flow of data across the organisation.
Why Businesses Need ERP
Of late enterprise resource, planning has grabbed the attention of various organisations. Implementing the ERP software results in improving the productivity and provides a refined view of the output and growth of the business. We list three reasons as to why ERP is necessary for your company:
- Operational efficiency for growing business
In a small organisation, it is easier for the managers to organise various tasks and keep a track of all the things going around. However, in a larger organisation with around 1,000 plus employees the task of arranging becomes a bit tedious. It becomes difficult to keep a track of all the procedures manually and that too without any mistake. In this competitive business environment, this fragmented type of activity will lower the rate of productivity as well as profitability and will also adversely affect the growth cycle of the company. But, having an ERP solution will enable the businesses to organise various processes and also allows keeping a track of them on an hourly basis. Moreover, introducing an ERP solution will also minimise the operating and other expenses.
- Improved consistency and accuracy
One of the other major important reasons of going for the ERP solution is that, it will keep the information in a steady and correct manner. An organisation has various departments that are not properly linked to each other. These departments generate information that is uneven and incorrect at times. This often leads to confusions and due to the false information wrong decisions are taken. The wrong decision can result in decreasing revenues and can also cause another problem. So, in this case an ERP solution can be the answer to all the problems. The solution will make sure that the information is maintained and managed in a proper manner across the different departments.
- Helping hand for the employees
Introducing and ERP solution in the organisation reduces the tedious reporting work of the employees at various levels. The employees once enter the data that later on help the managers to gather the real-time valuable information. It also enables the decision makers to understand their employees in a better manner by evaluating individual performance across multiple business sites and also oversee the overall performance. This process of analysing the performance will help the organisation in taking important strategic decisions.
So, we can say that ERP solutions are one of the best way in which we can accumulate the essential business information without any hassle. It also improves the decision-making process of the companies and enables them to achieve their desired goals. Therefore, it forms an important part of the growth process of an organisation.
Benefits of ERP
The primary benefit of ERP is that it integrates countless business processes and saves both the time and expenses. It enables the management of the company to make decisions faster with less error as the data is visible across the organisation. The ERP system also eradicates the need for coordinating multiple systems and manufacturing applications. It ensures legitimacy and transparency in the statistical data. It delivers comprehensive enterprise view and protects the confidential data by combining multiple security systems in a single structure. The ERP system is capable of enhancing the quality and efficiency of the business and keeps the internal process of the organisation smooth. It supports the upper level of management and provides information that helps in decision making.
The ERP system is also introduces flexibility in various organisational processes and can also contribute to the area of data security. Along with this, it also provides collaboration opportunities to the organisations. It gives a collaborative platform which allows the employees to devote more time in collaborating the content rather than mastering the learning curve of communicating in various formats across distributed systems.
These advantages of an ERP system clearly highlight that the organisation, which implement the solutions can transform their growth strategies into profit. A well organised ERP implementation will lead to cost savings that will in turn help the businesses to survive and emerge out from the times of an economic crunch.
The market has multiple vendors, who provide ERP solutions to the organisations belonging to various sizes. The organisation can select the services depending upon its size ad requirements. For all the large enterprises out there we have three companies that dominate this segment they are SAP, Oracle and Microsoft. The medium sized enterprises can consider purchasing the solution from Infor, QAD, Lawson, Epicor and Sage. Last but not the least our small sized enterprises can also avail the benefits of ERP. They can consider going for Exact Globe, NetSuite, Syspro, Visibility, Consona, CDC Software and Activant Solutions.
All these vendors provide will provide you with the best ERP solutions as per your organisational needs. Once deployed in the right manner you can enjoy the fruits of this solution and can increase you organisational revenue.