What IS ERP?

Enterprise resource planning (ERP) is a type of software system that

helps organizations automate and manage core business processes for
optimal performance. ERP software coordinates the flow of data
between a company’s business processes, providing a single source of
truth and streamlining operations across the enterprise. 
 What IS ERP?
1. Why enterprise resource planning is important?It enables an
organization to synchronize disparate data into a manageable database
that is essential in running its operations. It reinforces greater flexibility
and transparency, reduces cost, and saves time.
 How Does An Enterprise
Resource Planning System Work?
Enterprise resource management applications collect, process, store in the cloud, and manage all of the data from different departments of the business, eliminating the hassle of collating data. However,
compared to ERP systems, manual work takes longer to collect, process, and streamline data, which delays decision-making.
In the case of ERP applications, everyone from managers to employees can access information in real-time, cohesively, and across departments. The flow of communication is streamlined to eliminate the time-
taking process of gathering disparate information from multiple sources.
Collecting data from various departments like manufacturing, inventory and order management, customer services, sales and marketing, finance, etc., brings greater efficiency and accuracy in decision-making.
In addition, ERP applications eliminate the possibility of human error. At the same time, an ERP system can better explain the data by employing graphs, pie charts, percentages, and tabular formats per the
company’s needs.
For instance, information processed through enterprise resource planning software is available to the accounting and sales departments to calculate the statistics they require for gaining insightful business
knowledge. Such as, the accounting department can access data from various spreadsheets. At the same time, a salesperson can conduct a tally of finalized deals from the data on the same portal or ERP
system.
At the same time, the personnel in the inventory will make arrangements for delivery with the same information available through ERP software. As a result, ERP systems make business organizations more
aware of their progressing functions and operations by synchronizing databases.
Characteristics of ERP
1. Availability of Data in Real Time
Vivid data is processed that provides insightful information on developing business trends in real-time that indeed helps grasp opportunities.
2. Centralized Data Processing
Upgrades information gathering throughout the organization that helps in quicker decision making and requires less time to collate this data with the help of technology.
3. Flexibility and Transparency of Data
Better data representation through ERP systems improves the understanding of the information across departments by collecting, storing, and processing data. It reduces the possibility of human errors and makes data accessible even remotely.
4. Automatic Information
With enterprise resource planning software, a database is generated automatically for the entire organization with insightful information and intelligence from various functionaries and departments. Consequently, it also eliminates various time-
consuming processes.
5. Customized Look and Features
ERP systems are curated with special features by software manufacturing companies that work to understand an organization’s special needs, vision, and mission. Thus, to benefit from the services of ERP systems, an organization should be aware of
the basic reasons for installing one.
 ERP Types

1. On-premises Software
Companies or businesses using this software maintain it within office premises, either physically or internally, on in-office computers and servers. However, these are not
accessible remotely, but complete ownership and control are with the business.
2. Cloud Software
Such cloud-based or web-based ERP systems are remotely accessible on any device with an internet connection and are known as – Software as a Service or SaaS. It is a
subscription-based service for which the service provider ensures training, support, and customization.
3. Hybrid Software
This software combines the above two software services. It depends on how the user organization and service provider host and deploy these, respectively. This type has
greater flexibility and allows for newer addition and implementations in the existing systems.
Modern ERP software systems
Historically, ERP systems were suites that worked separately and didn’t talk with other systems. Each system required expensive, complex, and
customized code to meet unique business requirements which slowed—or even prevented—the adoption of new technology or process optimization.
What makes today’s ERP software different is that it brings all these different processes together in one fluid system. It doesn’t just offer data
connectivity within your ERP system, but also within your productivity tools, e-commerce, and even customer engagement solutions. It enables you to
connect all your data for better insights that help you to optimize your processes across your entire business.
In addition, a modern ERP solution offers flexible deployment options, improved security and privacy, sustainability, and low-code customization. But
most importantly, it builds continuity and resiliency into your business and processes through insights that help you innovate at a rapid rate today
while preparing your business for what’s next.
 Example
Let us understand the critical uses and functions of ERP applications utilized by Amazon for managing its marketplace.
An enterprise resource planning example is the Systems Analysis and Program Development or SAP. SAP is an ERP solutions company that has been present in the business since 1972, originated in Germany.
Through the years, it’s become a global doyen by providing well-founded and superior ERP application services in financial accounting, invoice verification, inventory management, logistical requirements,
HR, order management, and sales assistance.
SAP’s S/4Hana Cloud is the most modern and intelligent ERP solution that provides AI, machine learning, and advanced data analytics for ever-expanding global businesses.
Amazon, a global marketplace, uses SAP’s ERP solutions services to manage its product line, customer relations, and orders and generate essential customized reports. The system helps prevent the company
from losing sales and assists Amazon in building a more profitable supply chain. In addition, the company has millions and millions of products listed on its marketplace that are country-specific. Thus such
ERP solutions assist in collating this product information into one database.
The process of collating the products and offers from separate domains in the age of big data while ensuring data security becomes both a challenge and an opportunity for e-commerce businesses. The credible
and safe use of ERP systems ensures the efficiency and profitability of Amazon, from accounting to shipping. In addition, using ERP solutions has helped it achieve a more customer-engaging business profile
and gain an edge over competitors.
 Benefit
1. Automation and Integration of Information
An ERP system enables a cohesive database that provides a one-stop solution to various business functions, reports, invoices, and analytics.
2. Increases Productivity
ERP solutions and cloud services provide access to insightful data through detailed reports without the help or assistance of an IT expert. An ERP system enables employees to identify problems on the go (even remotely), get information from across
departments in lesser time, and arrive at a solution quickly.
3. Reduces Operations Cost
These solutions streamline disparate workflow and information from different departments into one database, eliminating excessive human interface and possibilities of human error and thus saving time and costs, etc.
4. Gives Edge Over Competitors
ERP solutions can take a business from 0 to 10 in terms of ranking when businesses adopt customized solutions that are qualified, intelligent, and customized. With real-time data availability, honed information, and quicker access to tap opportunities in case of
addressing customers’ concerns and engagement.
5. Strengthens Data Security
Businesses thrive on data intrinsic to their business functions, operations, and technology. Thus, a repository of data on-premise or on the cloud helps eliminate the threats and misinformation related to disparate data, like generating reports, invoices, etc., and
also eliminates data manipulation.
Three signs that you need ERP software
If you’re reading this and struggling with your legacy system, you might be wondering if this is the right time to make a change. Here are some signs that you need new ERP software:
1.
The basics aren’t letting you grow: Perhaps you’ve been doing fine with basic tools, but if your current software is putting limits on your market expansion and ability to grow on a
global scale, it may be time for a better ERP system that is flexible enough to allow for growth.
2.
You’re dealing with disparate systems: As technology changes, you’re noticing that your disparate systems don’t work well together. You may notice that your new accounting
software isn’t compatible with your old HR system, and you’re tired of wasting time and resources trying to stitch a solution together.
3.
You can’t meet customer expectations: If your staff and customers are mobile and your system isn’t accommodating them, it’s time to invest in one that meets everyone’s needs.
Giving your staff the tools they need to succeed and investing in meeting your customers’ expectations can help you maintain your competitive edge.
TIP: If you or your staff are asking for a new system and there’s a resistance to an ERP change, schedule a demo so everyone can see what’s out there. When everyone feels like they’re
included in the decision process, it’ll make implementation much easier.
Three ERP implementation challenges for businesses
Despite all the options out there, some companies are still hesitant about implementing ERP. There could be many reasons why, but where there’s a challenge, there’s a solution.
Choosing the right ERP solution.
You don’t have to find the perfect software solution to fix everything. ERP should be able to take the best of the business processes you’re using now and bring them together under one system that
allows everyone in your organization to view the same information. This is why choosing the right technology partner is important.
Affording the cost of an ERP system.
A solution doesn’t have to be an all-or-nothing implementation. Software solution modules can be purchased separately according to your business needs. This will help your team ease into the
implementation piece of ERP, and it’ll save you from having to invest in a major software renovation without knowing whether the functions you’re adding will pay off.
Integrating new ERP software with existing software.
As we mentioned, any ERP solution you choose should work with what you’re using now but also include features that can help in your future growth. For instance, if the software you have mostly
handles the financial, supply chain, and manufacturing sides of your business, you may want to look for a solution that brings in a strong business intelligence component.