Rolling The Curtains of ERP

When companies eventually reaches to a point where spreadsheets no longer cut it, Enterprise resource planning (ERP) software steps in. ERP is an application that automates business processes and provides insights and internal controls, drawing on a central database that collects inputs from departments including accounting, manufacturing, supply chain management, sales, marketing and human resources (HR).

Big data make it very challenging to keep everyone on the same page and hinders collaboration and efficiency, especially as an organization grows.?An ERP system solves this problem by compiling information in a central database to grant managers and employees cross-departmental visibility. One of the major feature is detailed analytics and reporting on each department. It also eliminates the problems that come with conflicting sources of data and empowers them to analyze various scenarios, discover process improvements and generate major efficiency gains. It is cost and time savy. There are several deployment models for ERP software, including on-premises, cloud and hybrid.

ERP systems comprise?various modules, each addressing a specific business requirement. For example, modules for accounting, inventory and order management, customer relationship management (CRM). Services businesses may turn to modules for accounting, project management, professional services automation, and CRM.

There are two primary approaches to building out an ERP system. The first is to purchase software that can handle each of these core business functions. The second is to buy all the modules you need from ERP vendor and avoid integrations since the applications are already designed to work together.

ERP systems work by using a defined, standard data structure. Real-time data is then woven into business processes and workflows across departments. Information entered by one department is immediately available to authorized users across the business which helps to keep everyone on the same page. ERP enables companies to identify areas of the business with room for improvement or opportunities for expansion.

Companies across every industry, with diverse business models, have realized the benefits that come with ERP. Flexible solutions with extensive functionality can cater to a wide variety of organizations and requirements. Companies often find that they improve and modernize their processes, and in turn?maximize operational efficiency?and avoid falling behind competitors.?

The cost of an ERP project varies widely from less than $10,000 per year to millions of dollars annually. The price of ERP will also vary based on which modules you need. Solutions may come with core functionality for finance and basic inventory/order management, but adding complementary modules brings an additional fee.

Now that companies understand the tremendous benefits that come with an ERP, they’re looking for ways to up the game. Technology like artificial intelligence (AI), blockchain, augmented reality (AR) and the internet of things (IoT) are shaping today’s?ERP trends. Many of these technologies are already embedded within industry-leading ERP solutions.