Thinking about a business idea is one thing and seldom easy, but running a whole business around that idea is another. Plus, keeping up with every business operation and compiling a ton of data becomes tough as the business grows.
This is why businesses of all sizes deploy Enterprise Resource Planning (ERP) system. An ERP system is an integrated business management solution that acts as the backbone of an organization. It makes your enterprise more efficient, resilient, and intelligent enough to strike the chord with evolving markets.
If you’re into running a business, you might need help from an ERP solution (whether on-premises, cloud, or hybrid).
But do you know what an ERP is? What does an ERP system do? How does an ERP solution benefit your company? We’ve assembled easy-to-digest keynotes to help you discover the basics of ERP and why you should deploy it. Let’s get rolling!
What is Enterprise Resource Planning (ERP)?
ERP refers to ways of managing the back-end operations and resources to run an enterprise and the software that makes it easy, known as ERP software.
Today, there are numerous ERP solutions available in all shapes and sizes to help organizations of all sizes spread across industries bolster their operational efficiency, avoid unnecessary costs, and scale their business at par.
These solutions assist companies with simple tasks like accounting and procurement to complex operations such as financials, supply chain management, inventory, HR-payroll, and scheduling.
More precisely, an ERP system is a centralized program designed and developed to run essential functions of an organization.
What is the purpose of an ERP for a Company?
Many use cases can prompt you to employ an ERP system.
The more important one is when businesses look for ways to bring all their precious data into one place and keep it flowing to preserve business continuity.
Companies strive to do it since it keeps their data safe, and organized, and can be accessed anytime, anywhere.
An ERP system provides the flexibility to help business admins keep track of all the moving parts of their organization and get a 360-degree view of day-to-day operations.
Do companies of all sizes use an ERP system?
Yes. More than 70% of large groups use an ERP or a similar business management solution.
Any company – no matter what the size is – needs an ERP system. It is projected that the ERP market size will hit $117.09 billion by 2030. That’s about $360 per person in the US. This data is enough to see the value an ERP system can generate for businesses.
Earlier models of ERP software were incorporated to manage large manufacturing companies. However, as technology evolved over the years, cloud-based ERP solutions are making it more accessible.
Businesses of all sizes and budgets can implement an ERP system to better manage their supply chain, improve financial control, and generate custom proposals and reports.
One of the popular aviation fluid handling component designer and manufacturer near Niagara Falls experienced soaring profit post implementing a cloud ERP solution – Microsoft Dynamics Business Central. This comprehensive ERP helped this manufacturing company expand its manufacturing capabilities and do more with less.
What are the benefits of Deploying an ERP for my business?
Investing in an ERP solution is a long-term decision, and it will help you now and, in the future, to make informed choices.
Today, companies want a business management system that is comprehensive; meaning, a solution that breaks data silos into meaningful insights, and makes it easy and quick to share reports between departments.
Here are the benefits of an ERP your business can reap, they include:
- Get a clear, real-time picture of your financial data to gain better financial visibility and maximize profitability.
- Seamlessly manage budgets, record transactions, and expenses, oversee assets and collections, and measure cash flows.
- A better ERP solution helps a company keep its financial data safe and compliant.
- Cloud ERP solutions offer advanced data security features, automatic backups, and disaster recovery options, which leads to mitigating most security concerns of business owners.
- Helps businesses make their supply chain more resilient and sustainable. It is one of the many reasons why ERP was first created.
- A best-of-breed ERP suite can help organizations monitor the progress of various projects at one time.
- According to successful business leaders, ERP is a synonym for “managing human capital effectively“. In other words, any ERP can be the best if it gives importance to people working in an organization. Hence, an ERP is essential to manage the core functions of an enterprise, such as time management and payroll.
Further, an ERP can also help a company automate HCM (Human Capital Management) tasks like scheduling, employee absences, and vacations to save time, money, and other tasks like providing a clear overview of hiring data.
Cloud ERP solutions can provide business intelligence features to help you track progress, measure performance, and create in-depth reports. With an integrated ERP solution, stakeholders of a business can empower their organization to quickly make informed decisions.
Customer relationships management (CRM) is another field in which an ERP like Dynamics 365 Business Central can help an organization deal with basic customer service needs.
If you want to see how an ERP like D365 BC works, you can opt for a free trial here: How to get started with Dynamics 365 Business Central FREE Trial
When does your company need an ERP solution?
For most companies, it is not the matter of “why should they” implement an enterprise resource planning software, but “when is the right time.”
The right time to deploy is when you are going through one or more of the following situations:
- You’ve outgrown your existing software: Your current ERP system can no longer process the data and lacks automation capabilities.
- You’re having inefficient processes: Constantly switching among ERP software to find the right fit.
- When you are spending a ton of money on software integrations: You are trying to integrate multiple applications and add-ons to streamline data and access it cross-departmentally. This isn’t cheap!
- Your current ERP system is not able to meet customer demands: It means, you are no longer in a position to live up to your promises and having difficulty managing and tracking inventory.
There may exist other reasons why a company needs modern ERP software.
If you’re a small size business looking for a comprehensive business management solution, you can always get in touch with us. Our ERP solution experts are always there for you! Contact now.