Nowadays, the modern businesses of all sizes have to manage several business functions. These include human resources, supply chain management, customer relationship management (CRM), and manufacturing resource planning, among other operations. It can be overwhelming to manage all these business aspects manually or independently.
It is, therefore, understandable why systems like enterprise resource planning (ERP) are growing more popular. ERP systems are designed to integrate all business functions, creating workflows and decision-making processes that are easier to manage. This leaves organizations with more time to concentrate on their core business.
So, What is ERP?
ERP is an acronym for enterprise resource planning, a business management software that manages and integrates day-to-day business activities, such as many of the business functions like
- sales & marketing,
- finance & accounting,
- manufacturing & processes,
- human resources,
- project,
- supply chain management,
- customer relationship management,
- knowledge management and many other business functions.
They are integrated into enterprise information systems to further improve organizational performance. It provides real-time and accurate information that helps stakeholders make good business decisions based on the data generated. By collecting a company’s shared transactional data from multiple sources, ERP eliminates duplicate data and provides data integrity.
Besides, ERP systems offer a high degree of flexibility that allows the users to manage their businesses anytime and anywhere. Nowadays, cloud-based ERP systems are increasingly in demand among SMEs, due to the higher levels of mobility and affordable prices.
Features of an ERP System
Centralized database
The main feature that ERP systems all have in common is a shared database that supports all of the functions used by several different departments in the business. Functionally, this means that employees in different business departments are working off the same information, so their decisions are better aligned. Additionally, there will be less confusion surrounding reporting because all of the information is coming from the same place. Because the dashboards are customizable, you can track the metrics that are most important to your business.
Customizable dashboard
ERP systems contain a customizable dashboard that provides data and insights to keep your decisions focused on growing your business. With a single, centralized system, it’s easy for every department to get the information they need when they need it, and the executives can be confident that the data is sound.
Integrations
While many businesses are happy with their ERP just as it comes, some may want a little more customization. Most ERP software provides integration opportunities, so you can add features that you may need or want. Additionally, most ERP systems will integrate with CRM and accounting software to optimize operations that use multiple systems.
Which Industries Can Benefit from ERP?
ERP was originally designed for the manufacturing industry, now the software has expanded to various other sectors such as service, education, retail and wholesale, real estate, food and beverage, health, and even government.
Every organization certainly manages employees, buys products or services, sells or distributes something, and accounts for finances. ERP allows organizations from all industries to integrate and manage all these basic functions.
Our Thoughts
In the midst of increasingly fierce business competition, you must be able to keep up with the ever-changing technological trends. Running your business with manual or outdated methods will only get your business left behind. If other business owners have automated their operations, then why haven’t you?
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