Handling a growing business is easier said than done. You gradually shift from paper documents to Excel sheets and Word files. And eventually comes a time when even spreadsheets and documents add to the operational chaos instead of acting as a solution.
That’s when organizations move toward implementing Enterprise Resource Planning, or ERP as we call it, from the best ERP software development company in India to streamline their operations.
If you are a corporate professional or run your own business, you might be familiar with the term already.
But what is ERP really? How does it help businesses? What are its benefits and features? Which sectors can make the most out of an ERP system? Let’s discover all that and more in this bog post.
What is Enterprise Resource Planning (ERP)?
In simple words, Enterprise Resource Planning software is a system that enables a seamless flow of information, as well as communication, between different units of your organization. Think of ERP as the centralized information system of your business that helps optimize your business processes to achieve your business goals.
Let’s say you received a bulk order. Now, multiple departments of your organization need the same information for smooth order processing.
With an ERP system in place, your sales team can feed the order details into the database. The other teams, including manufacturing, accounting, sales, customer relations, and supply chain, with database access can follow their respective SOPs right away to process the order without affecting each other’s workflow.
Since there is one single database, there are no missing bits of information or to-and-fro of data causing errors. The data is updated in real-time, which further simplifies the tracking of tasks and resources. As a result, every team member is always aligned. That, in turn, improves collaboration and overall organizational efficiency.
ERP Modules and ERP Suite
Now that you have a fundamental understanding of ERP, it’s time to decode its two primary terms – ERP Modules and ERP Suite/System.
ERP Modules are nothing but separate components that simplify specific business operations. The HR module, for instance, makes it easier to handle human resources operations, and the accounting module helps streamline your accounting processes.
There are plenty of modules available out there, and you can get the ones you require for your business.
ERP Suite, on the other hand, is a comprehensive software system with different ERP modules to help manage your business from the word go. Most ERP software development companies in Ahmedabad and the world offer customizable solutions. That means you can select the modules you need in your ERP system.
Whether you go for individual ERP modules or an ERP suite, its integration with your current business tools is easy and hassle-free. Moreover, you can always get additional modules as your business scales.
Types of ERP Systems
ERP software can be divided into three categories based on the deployment type:
- On-Premise ERP
ERP systems that are deployed on your commercial premises fall under this category. In this type of ERP system, you get complete control – right from installation to implementation to maintenance. It is a comparatively expensive and complex option.
- Cloud ERP
Cloud ERP software is managed and operated by the vendor on their cloud platform. And thus, the vendor handles everything – from the installation to the maintenance of the system. A cloud ERP solution runs either on the public cloud or private cloud. The cost of cloud ERP is cheaper than the on-premise one, making it an ideal choice for small to mid-sized businesses.
- Hybrid ERP
As the name suggests, hybrid ERPs combine both the cloud and on-premise deployment models. Some applications can run on the cloud while some can be deployed on-premise, providing you with optimum flexibility as per your distinct business needs. It is a good option for businesses that need reliability and rapid functionality within a budget.
Why Do You Need an ERP System?
Getting an ERP system from the leading ERP software development company in India benefits your business in more ways than one. Let’s take a look at some of these advantages:
Advantages of Using ERP Software For Your Business
- Simplifies day-to-day operations management
A comprehensive ERP system packs in a centralized dashboard with a custom, easy-to-navigate interface. Thus, all the users from different departments have access to the same set of data and are always in line at any given time. That not only simplifies your everyday business operations but also streamlines your processes as a whole.
- Boosts productivity & performance
ERP software, through automation, automates & speeds up repetitive tasks, allowing your teams to focus on more critical matters. At the same time, the software provides instant access to updated data, enabling you to identify & fix bottlenecks in operations just in time. As a result, your processes turn faster and more efficient, helping you boost your overall organizational productivity and performance standards.
- Offers scalability & compliance
Integrating ERP software for your business operations makes it convenient for you to scale along growing business requirements. Add the modules you need without any hassles or disruptions to your current workflow since it’s entirely a plug-and-play model. In addition, most of the ERP software development companies in Ahmedabad provide solutions that comply with regulatory standards, ensuring smooth business functioning.
- Streamlines collaboration
As everyone in the organization uses the same interface, collaboration between diverse teams becomes hassle-free. There is a consistent stream of communication among different stakeholders, which eventually contributes to process improvements.
- Enhances decision-making skills
ERP software provides you with accurate data in real-time, which also helps generate precise reports. Furthermore, the dashboard offers you a quick glance at the overall status of any project or process whenever you need it. Access to such updated insights and accurate reports allows you to evaluate your current business standing and make more informed decisions for the future.
- Improves partner and customer relations
ERP systems can become your single window for managing various business stakeholders, whether it is your customers, vendors or partners. Since all the data is in one place, it becomes possible to offer personalized services. That, in turn, helps enhance and strengthen your relationship with them considerably.
- Decreases cost
With an ERP solution in place, your repetitive tasks get automated, eliminating potential errors and their subsequent scope of losses. Moreover, the software allows you to make optimum use of your resources. The result is you save a lot of your time as well as money.
Which Industries Use ERP?
ERP software is used by SMEs and large-scale organizations alike across industries worldwide. Some of the sectors leveraging ERP the most include IT software and services, accounting & finance, advertising, marketing, healthcare, manufacturing, travel & tourism, construction, pharmaceuticals, transportation & logistics, hospitality, retail & ECommerce, and production & distribution.
Incorporating ERP software benefits each department of your organization. However, there are certain departments that get an extra edge through the system, becoming more organized, seamless and rapid. These business units include finance & accounting, supply chain, human resources, and sales and marketing.
When Does Your Business Need ERP?
Does every organization need an ERP solution? How to recognize whether it’s time for your business to embrace this technology?
The following scenarios are some of the signs that you need an ERP system as soon as possible:
- You are struggling to manage everyday processes.
- It is chaotic to access the right data and information.
- A lot of your time & resources go into managing manual processes and disparate systems and eliminating duplicate data.
- It is becoming harder to meet client expectations through legacy systems.
- You are finding it difficult to expand your business operations.
Final Thoughts
An enterprise resource planning system, through its unified solution, helps organizations integrate and manage their varied business processes effectively. The software fosters seamless communication and improves the visibility of data & insights across organizational levels. That, as a result, makes way for efficient resource planning and management, leading to increased productivity, better business decisions, and scope of business growth.
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