There are many moving parts when running a
business. In this scenario, you: run your daily operations, manage your sales,
pay your employees on time, supervise your inventory, file your taxes, manage
your production and supply chain and last - but not least - keep your customers
happy and coming back . In other words, ERP software makes managing your
business much easier.
So, what is ERP exactly? ERP means enterprise
resource planning. In other words, in its most basic form, it is a single
system that integrates all the essential processes necessary to manage a
company.
An ERP system is made up of enterprise resource
planning applications that communicate and share a database. Thus, each
application, often called a software module, generally focuses on one area of
business. Finance, human resources, sales and logistics are popular starting
points. In addition, there are specific modules for a wide range of industries
- from wholesale and manufacturing to retail and e-commerce.
Most enterprise resource planning systems have
simplified automation and reporting capabilities. This helps companies to
operate more efficiently and better comply with compliance regulations.
Because each ERP application is connected and
shares a common interface, different business units (for example, sales and
finance) can work from data that shares a single source of truth - facilitating
fast, fact-based decisions and collaboration. Likewise, managers can view
business insights from any angle.
So, how does
it all work in practice?
Let's use sales orders as an example. When they can
be automatically fed to the finance and order management departments, both
units can get their work done - closing books and processing orders - faster
and with fewer errors. Therefore, an ERP system reduces manual data entry and
improves the flow of information throughout the organization.
Why use an
ERP system?
Most growing companies start by using a variety of
simple, stand-alone tools to manage different processes, such as QuickBooks,
Excel spreadsheets and more. But as businesses grow, managing disparate
applications can become confusing and time-consuming.
Thus, most large companies have robust ERP systems.
But how and when should small and medium-sized enterprises (SMBs) implement Customized ERP Software's in Dubai?
More
flexibility
Many companies turn to ERP software because they
are frustrated by the rigidity of their current models. Without easy access to
accurate information, a number of essential questions may remain a mystery: is
your company making money? Which of your customers are most profitable? What
impact do market price fluctuations have on product costs? An ERP system makes
it very easy to answer these types of questions.
Better data
management
If your company is drowning in spreadsheets,
relying on paper-based processes or acting on bad information from fragmented
solutions, it's probably time to consider enterprise resource planning
software.
With a better flow of information, your business
teams can do their job more efficiently. They can streamline accounting, asset
management, purchasing, manufacturing, inventory, customer service, hiring, payroll
and more.
The good news for SMBs is that the cloud makes ERP systems much more accessible -
especially when provided as software and platform services . Cloud-based
enterprise resource planning software is readily available and requires a low
initial investment.
Small and medium-sized businesses in favor of a
local approach are also much better off than they were years ago. The
investment required to run your ERP system on your own premises has been
significantly reduced.
How are ERP
systems changing?
To keep up with digitalization, ERP systems also
had to evolve. Business activities in a dynamic digital economy are constantly
changing. Thus, they need to be carried out in various channels and points of
contact.
Customization
Although previous ERP systems stood out in the
integration, adding new features could be time consuming or even require a
complete overhaul. Today's ERP systems are made up of loosely coupled
components that can be easily added or removed according to growing business
needs - giving organizations the flexibility they need to thrive in the digital
economy. In addition, cloud solutions can fill any functional gaps and expand
business resources.
Technology
In-memory, mobile, social computing and the
Internet of Things have also had a dramatic effect on today's ERP software
environment. Enterprise resource planning systems are beginning to incorporate
all of these technologies to transmit information in real time between
departments. They include analytical technologies that help companies make
decisions based on data and manage performance from moment to moment.
In the same way - and in many cases thanks to these
latest technologies - the limits of the industry have become blurred. Companies
that focused on classic manufacturing a few years ago are now using mobile
technology to provide their customers with after-sales services and have found
a completely new revenue stream. Others who used to sell through a distribution
network may now be using the web and social media to find an additional sales
channel. These changes need to be reflected in a company's ERP system. That's
why the next generation ERP systems offer much more agility than the previous
generation.
Decision-making
ERP provides a digital business core - a kind of
nerve center - that consolidates internal and external elements in a single
structure. In this way, it connects processes, provides information and live
insights and integrates the company with the world in general. With a solid
digital foundation, you can add specific lines of business solutions - such as
finance, HR, sourcing and purchasing, R&D, asset management and more - as
needed. As the functionality of ERP systems changes, so does the definition of
the term. But one thing is for sure: enterprise resource planning software is
good for business. It positions your company to make faster decisions, embrace
new opportunities and drive profitable growth. Ready to make the change?
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