What is an ERP-system and why do you need one?
An Enterprise Resource Planning (ERP) system is a software suite that integrates and automates core business processes, such as finance, human resources, procurement, inventory management, and supply chain management, into a single unified system. The goal of an ERP system is to streamline operations, improve efficiency, reduce costs, and provide accurate and real-time information for better decision-making.
ERP systems typically consist of a centralized database that stores all relevant business data, and various modules or applications that handle different business functions. Users can access the system through a web-based interface or client application to perform tasks such as creating invoices, managing inventory levels, or tracking employee time and attendance.
Nowadays, ERP systems are used by businesses of all sizes, from small and midsized firms to large multinational corporations, and are typically customized to meet the specific needs of each organization.
Seven benefits from having an ERP-system
- Improved efficiency: An ERP system eliminates the need for separate systems to manage various business processes. This, in turn, helps to streamline operations and improve overall efficiency.
- Increased productivity: ERP systems automate many routine tasks, such as data entry and report generation, freeing up employees to focus on more value-added tasks.
- Better decision-making: ERP systems provide real-time access to data, allowing managers to make informed decisions based on accurate, up-to-date information.
- Enhanced collaboration: ERP systems promote collaboration by providing a central repository of data that can be accessed by employees across different departments and locations.
- Improved customer service: ERP systems allow businesses to better manage customer interactions, such as sales orders and support tickets, leading to improved customer satisfaction.
- Reduced costs: An ERP system can help businesses reduce costs by eliminating duplicate efforts, reducing inventory levels, and optimizing business processes.
- Scalability: ERP systems can scale with the growth of the business, providing a solid foundation for long-term growth and success.
Common triggers for implementing or changing ERP-system
There are different reasons why companies choose to implement or upgrade their business system. Below are common triggers:
- Growth: As a company grows, its business processes become more complex, and the volume of data increases. An ERP system can help organizations manage this complexity and provide real-time visibility into business operations.
- Outdated legacy systems: Legacy systems can be outdated, difficult to maintain, and may not meet the current business requirements. An ERP system can help modernize these systems and provide a more integrated and efficient solution.
- Mergers and acquisitions: When two or more companies merge or acquire each other, they may have different business systems. An ERP system can help standardize processes and integrate data from different systems.
- New compliance requirements: Regulatory changes or compliance requirements may require organizations to implement new processes or systems. An ERP system can help organizations comply with these requirements and provide the necessary reporting capabilities.
- Challenges with insights: When different departments in an organization use different software systems, data can become siloed, making it difficult to access and analyze. An ERP system can help break down these silos and provide a unified view of the data.
- Competitive pressure: If competitors have better systems and processes they gain a competitive edge. Organizations may need to implement an ERP system to improve efficiency, reduce cost or enhance customer satisfaction in order to stay competitive.
Choosing an ERP-system
There are very many types of ERP systems. Which one is better highly depends on your company’s goals and business needs. Factors to consider are for example requirements on flexibility and control.
One important question to start with is weather to opt for a Cloud or a Hybrid solution. In this blogpost we outline the pros and cons of these two alternatives: A Six-Point Comparison of ERP-solutions: Cloud or Hybrid
At xperitus, we are an Oracle Partner and have made numerous implementations of NetSuite and JD Edwards EnterpriseOne. We assist our clients with system issues but also to a great extent with their process and business development. Moreover, we assist companies in choosing ERP systems. If you have any questions about NetSuite and/or JD Edwards, we are here to assist you - contact us today.