All You Need to Know About ERP

In the modern world, the term ‘Enterprise Resource Planning’ (ERP) is used very often by enterprises. Let us explore what it is all about in detail.

What is ERP?

There are several processes involved in the functioning of a company including HR, finance, supply chain, manufacturing, procurement, services, and many more. Seeing from the most basic perspective, the Enterprise Resource Planning (ERP) software could be regarded as a tool that incorporates all these processes into a single, unified system. In fact, the ERP systems make use of the latest technologies like AI and Machine Learning to offer visibility, intelligence, and efficiency in each aspect of a business.

In general, an ERP system makes use of a central database for different business processes in order to minimize manual labor and also to streamline the workflow. Further, such a system normally includes dashboards where the users can view the real-time data which is gathered from different aspects of a business so that they can measure the cost-effectiveness and efficiency.

What are the Benefits of an ERP System?

• • Helps to Gain Better Insights
    Eradicate the information silos, gain access to a single source of truth, and get quick answers to critical business queries
  • Enhances Productivity
    Integrate and automate the key business processes to make sure that the functionality can be improved with lesser resources
  • Minimizes Risk
    Improves the business visibility as well as control, predicts and averts risk, and makes sure that the whole system complies with all the regulatory requirements
  • Augments Reporting
    Enables sharing quick results of financial reporting and allows to act as per the insights and enhance performance
  • Improves Agility
    With well-organized operationality and accessibility to real-time data, it helps to identify new opportunities and react accordingly.

What are the Different Kinds of ERP?

It is a known fact that integrating an ERP system into a business can transform it in a better way. There are three kinds of ERP implementations such as Cloud, on-premises, and hybrid. Let us discuss each one in a detailed manner.

Cloud ERP

The Cloud ERP which is also known as Software-as-a-Service (SaaS), is a particular kind of deployment wherein a company’s ERP software and the related data are managed on a centralized basis on the Internet “Cloud” and are retrieved by the customers via a web browser. When compared to the on-premises variety, the preliminary cost would be lesser, though it might come up as an overhead cost which the company would have to pay throughout the lifecycle of the system. By deploying this ERP, you do not have to take much effort to maintain the system, as the provider is responsible for managing it and ensuring that it is working fine throughout. Further, the Cloud ERP has several advantages when compared to on-premises ERP such as the system performance and accessibility, the deployment speed, the system upgrades and enhancements, and the like.

On-premises ERP

The on-premises ERP solution is normally implemented on your system hardware and servers, which is then managed in-house by the IT staff. The primary investment in this plan is quite high as the company is required to procure and manage the software and related hardware by itself, to carry out the operations smoothly. Although this ERP solution has disadvantages owing to its exorbitant cost and difficulty in upgradation, many companies prefer it as it allows the enterprises to manage their own data, thus guaranteeing more security. Also, it provides options to customize and offers greater control over the entire implementation process.

Hybrid ERP

As the name suggests, the hybrid ERP solution offers the combined effect of both Cloud and on-premises ERP solutions, deriving the best results from out of these two. Further, it offers a logical solution to many companies who want to upgrade their existing ERP system, without altering it. In addition to segregating the functions between on-premises and Cloud ERP, the hybrid variety helps an enterprise to incorporate functions to the existing ERP system at a lower cost. The reason for the popularity of this variety is its simplicity and flexibility in offering the benefits of both on-premises and cloud ERP solutions.

Why Should the Companies Go for an ERP System?

ERP solutions are developed in such a way as to meet the specific requirements of different kinds of organizations. Here we shall discuss some advantages which the companies can expect from implementing an ERP solution.
Explore Top ERP RFP Templates

•  Keeping Up-to-date
  Technology is continuously changing and the conventional enterprise systems are unable to support the growing needs of companies on a constant basis. Further, the cost of updating an old system is quite high. The latest technologies like data analytics, Machine Learning, the Internet of Things (IoT), etc. are incorporated within the modern software systems and they are capable of identifying trends and patterns that enable the companies to make smarter decisions and thus gain a competitive edge. So in order to remain competitive, businesses are required to use modern systems that empower them to be scalable and flexible. It is here where the ERP solutions come into the picture. In fact, they are intended to provide adaptability, flexibility, and scalability for growth.
• Handle Your Business Using One System
  An ERP solution enables you to tackle many key business areas with just one system. In fact, when businesses are forced to handle various business functions separately, there can be many issues including duplication of records or functions, data errors, lack of communication and lack of visibility into the entire business, etc. Much to the relief of the enterprises, an ERP solution synchronizes all these functions into a single, unified system.
• Enables Business Data Analysis
  Most of the companies deal with huge chunks of data in connection with their business, analyzing which gives you valuable insights on your sales patterns. However, getting insights from data using traditional methods can be a bit challenging as it may consume a lot of time, and by the time you obtain data, it may be outdated and thus unreliable. In this scenario, the ERP solutions can offer help in a great way through advanced methods for collecting and analyzing data, thereby enabling you to gain accurate and real-time insights quickly.
• Helps to Streamline the Processes
  While implementing an ERP system, the enterprises are compelled to rethink about their entire business operations. Further, it offers a great opportunity to evaluate what are the things that could be improved. Moreover, by setting up an ERP system, your organization can improve its efficiency, speed, and precision while carrying out its operations.

To sum it up, the cue lies in exploring the various features of the ERP solutions in order to use it quickly and effortlessly so as to augment the organizational efficiency.