What is ERP and what can it do for your company?

 

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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