What is ERP?

When you search for “what is Enterprise Resource Planning,” you can find numerous confusing definitions. That is because neither its short, nor full name does not shed light on what ERP systems are and what they do. Furthermore, it seems that each website has its own vision on what is ERP. The truth is that ERP is powerful business tool that can scale, integrate, and transform businesses. In this article, we have decided to give a brief introduction to Enterprise Resource Planning solutions to get a deeper understanding of what are they, how they work, and why it seems like everyone is talking about them.

What is ERP?

In order to get the idea of what is ERP software, you should first think of all processes necessary to run a business, such as CRM, HR, accounting, inventory management, etc. Basically, ERP solution integrates all these processes into one system to streamline information across the company. A shared database is the key feature of ERP software. This allows different departments to rely on the same data. Typically, it supports many functions and can be used by various departments. ERP systems offer synchronized automation and reporting instead of having to maintain separate spreadsheets and databases. Therefore, ERP transforms, integrates and scales your business.

What Does ERP Do?

ERP systems help employees perform their daily tasks more efficiently. They allow to break down barriers between company units. This involves applications and systems used to manage day-to-day operations and activities such as sales, IT, finance, customer service, project management, marketing, manufacturing, accounting, etc.

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Why Do We Need ERP?

ERP solutions grow the companies and make them successful. Enterprise Resource Planning systems connect and tie together the processes in a company in order for it to be productive, run efficiently, and work smoothly. Nowadays, they are mainly used to handle “front-office” functions such as ecommerce, marketing automation, and sales force automation (SFA). At the same time, ERP solutions are now able to encompass BI (business intelligence). That is why many businesses from ecommerce to wholesale distribution prefer to use them. Furthermore, cloud-based solutions have made ERP systems more affordable and easier to manage/implement, enabling BI and real-time reporting.

ERP Trends

During the last years, the adoption, development, and growth of ERP systems have been impacted by social media and technology. So here are some recent ERP trends:

1.Modular ERP. They are suitable for small businesses allowing them to select certain feature applications/modules instead of getting a full suite, which decreases acquisition cost.

2.Social ERP. Social media packages allow to process, track, and monitor social interaction as an important channel for client engagement.

3.Mobile ERP. These systems provide the ability to undertake core business processes while on the go with real-time access to client information wherever they may be.

4.Cloud ERP. Cloud ERP solutions have made the ERP suite more powerful, faster, cheaper, and therefore affordable to small businesses. They have numerous advantages, including maintenance cost and reduced implementation.

Benefits of ERP Solutions:

  • Improving customer satisfaction and enhancing client service by providing a single source for tracking and billing
  • Automating company operations such as procure-to-pay, order-to-fulfillment, and lead-to-cash
  • Reducing risk and improving financial compliance  
  • Providing a real-time, global view of data, enabling businesses to drive improvements and address concerns proactively
  • Facilitating standardized business by speeding up reporting, planning and eliminating errors
  • Facilitating data unification and regulatory compliance
  • Reducing costs and improving efficiency of an organization
  • Improving supply chain management due to efficient procurement, better inventory management
  • Improving visibility, which allows you to effectively manage your capital
  • Improving accessibility, data quality, and collaboration by providing constant access to data across different units in the company

To sum up, regardless of niche, type, and size, all businesses have many important areas that need to be managed properly. ERP systems offer the wide range of activities, binding together all crucial processes across the company. They apply integrated solutions to link, automate, and streamline the different departments of a company such as customer service, sales, finance, IT, HR. The most important thing is that ERP solutions can grow your business and increase your profits.

At Loonar Studios, we are capable of building ERP system of any complexity, size, and business niche. We offer high-quality ERP development to businesses with numerous options and benefits. In addition, our prices are much lower than those you would face when attempting to perform this on your own. Please contact us if you have any questions.