With the massive uptick of enterprise technology in the last few years, Enterprise Resources Planning (ERP) systems have become a necessity in business management.
ERP systems are used to manage a multitude of organizations globally, regardless of their size. Why? Simply because the fundamental concept behind ERP systems is that it works on a common database, ensuring that information processed across the network is unified. In other words, it is a vehicle that has manages all the business data from people to processes.
Suppose that you own a company that builds cars, and you hire multiple suppliers for purchasing different components. You’ll have to look at multiple aspects like payment processes, business processes, analytics, and many more. However, after the installation of an ERP system at your company, the entire cycle becomes stress-free because it will help you keep tabs of your purchase processes, workflows, business processes, analytics, and all other relevant details.
ERP systems typically utilize a central information base for different business cycles to decrease physical work and simplify existing processes. An ERP framework normally contains dashboards where users can see data gathered from all aspects of the business to quantify efficiency and profitability.
Because of that, ERP systems readily provide the necessary help across all business functions. With an ERP system, a company could collect data from multiple sources and eliminate duplication to provide integrity. For instance, when a client request gets submitted into a supply chain ERP system it would trigger that data to be sent to the team that is most productively situated to fulfil the order most efficiently. Depending on the configuration that is set up, you might even have the option to see stock levels, shipment times, and different elements to choose which distribution centre would be most beneficial and cost-viable in fulfilling a request.
By utilizing an ERP system, information from various functions can be effortlessly shared over an organization. This abundance of data and simplification can aid the advancement of business objectives and decrease the measure of time that your team spends on undertakings that could be computerized.
A robust ERP system would have these following features:
This feature has numerous benefits, the biggest advantage being the ability to provide better customer experiences. This is due to the ERP system’s ability to centralize customer information for quick access and accurate details.
There is nothing better to boost the productivity of an organization then system integration. ERP systems provide a platform that enables you to monitor and analyze the tasks end-to-end through a single database. This ensures all functions of the business work together seamlessly.
ERP systems have the capability to automate common, routine processes of an organization. Most common processes that are automated include payroll, invoicing, reporting and accounting. This is the best way to reduce unbillable manhours so that more human capital could be diverted to revenue generation.
ERP systems are responsible for managing the accounting process of an organization like payables, receivables, risk management, and much more. On top of that, a centralized database gives you a fool-proof audit trail and data integrity.
Owing to the centralized database, ERP systems can be configured to provide visibility and tracking of various assets such as manpower, equipment and inventory. Completely control every aspect of your business with astute accuracy.
Virtually all ERP systems have an inbuilt reporting feature. Some common tools that come with this include dashboard widget, configurable graphs and charts. These tools allow you to have a visual representation of the data in your system in a way that makes sense to you.
Perhaps the biggest advantage to having an ERP system is its ability to not only collect and process the data from multiple business functions but also to analyze gathered information. In making crucial business decisions, you can rely on your ERP system to give you actionable direction.
Once you’ve decided to go for an ERP system, the most important question you’ll have to answer is, where is your ERP system going to be hosted?
The trusty ol’ on-premise route has been around since the dawn of enterprise solutions, not without reason. For companies that already have existing private servers, this is the most cost effective deployment method. In fact, it might even optimize the use of your data servers, increasing the ROI on your IT investment.
On-premise also offers greater security and control of the IT infrastructure, making it an ideal choice for organizations in highly regulated, data sensitive industries.
Cloud technology is undisputedly a game changer, more so in the ERP space. Cloud ERP systems generally provide a more cost efficient option to its regular on-premise counterpart. Additionally, being on the cloud allows users to access the system through the web, eliminating the reliance on physical presence and enabling faster globalization.
The biggest plus point of cloud ERP systems is access to real-time data, putting the critical information at your fingertips instantly and accurately.
Open source ERP is a less common option. Not for the faint-hearted developers, this requires deep diving into extremely technical territories. Open source ERP is effectively tapping on a publicly available source code that you can access for free to customize software. This gives you more control over inspecting, modifying and enhancing your own ERP.
While the most low-cost option, open source ERP also is the most challenging and unproven method.
Hybrids are as the name suggests, a mix of two – on-premise and cloud. Hybrid ERP systems give you the flexibility of cloud with the additional security of on-premise. It is the best choice if you are in search of getting the best of both worlds, albeit usually at the total fee of two systems.
Deciding to implement an ERP system is a huge feat in its own. The next course of action would be deciding to go it alone or have a trusted partner you can rely on to get it done for you.
Unless you have a full army of tech specialists in your back pocket, it is generally advisable to seek the services of experienced implementation partner.
When shortlisting a partner, here are a couple of things to consider:
And this, my friend, is another tale, for another time.
Have we covered everything you needed to know about ERP systems? We’d love to hear from you!
This article is part of a campaign for CRT Insights Technologies’ Live-in-5 Rapid Implementation programme. Just 5 Easy Steps to getting your business future-ready.
CRT Insights Technologies provides world-class ERP solutions and expert advice from experienced regional consultants. No matter stage of your ERP discovery journey you’re at, CRT’s got the solution to make your digital transformation a breeze. Contact us today and quote “Live-in-5” for a free 1-hour consultation on your ERP needs today.
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