ERP or Enterprise Resource Planning is a set of business solutions that integrate different departments of an establishment and streamline their processes. In simpler words, we know that a business is run through different departments. Every department has its own way of delivering work and maintaining records. From workers’ perspective, an ERP system provides common platform for all departments where they can divide tasks, organize workflow and sync all operations with other departments wherever required.
From the view of business owners and management, this common platform enables them to monitor each aspect of business and get an accurate view of its current standing. ERP provides real time information that is completely based on accurate data, enabling the management and business owners to take right decisions at the right time. All this is done by software developed with the help of latest technology.
As a system, ERP is very vast and can perform a wide range of activities. Therefore, to understand its importance, it’s essential to know its major characteristics and the benefits it can bring to a business.
1. IT + Business methods = ERP
Foremost, ERP systems are IT solutions combined with business methods. Information Technology plays a vital role as it eliminates the need of manual work and brings in automation. ERP systems are developed both as a single software or a set of several software. Acclaimed ERP systems always make extensive use of the latest technology and combine it with proven business methods and practices. The result: a solution that conducts trustworthy processes at lightning speed.
2. ERP integrates all departments
ERP acts as a single platform on which all departments operate. Like a central conveyor belt on which every department places its deliverables and records, ERP unites an establishment by maintaining data at a single place.Choosing Focus 9 ERP software you can get Zero Balance Account with ICICI Bank.
Apart from improving inter-departmental communication, the integration of all departments ensures that all operations are run in sync and if there is any hurdle, it is identified immediately. The integration of departments also helps the management to have a complete overview of the whole business at all times.
3. It’s not just for big businesses
A common misconception about ERP systems is that they are used only for big businesses and large scale enterprises. While it is true that large scale establishments don’t shy away from investing heavily in ERP solutions; medium and small scale establishments also need them. ERP can make a huge difference in operations and can increase profits massively.
With increased competition and the economic and technological changes we see in the world today, ERP systems are a must for medium and small scale establishments.
4. You can standardize all processes of your business
With ERP, you can standardize all processes of your business. Whether it is a small task or a major operation, ERP can help you set proper workflow and establish order without much ado. With standardization and streamlining, the management and business owners will get more control and will have to worry less about assigning work.
5. Enables you to manage your business remotely
The most striking feature of an ERP system is that it enables you to manage work remotely. You can monitor every operation while on-the-go, saving time and energy and bringing in more efficiency. With remote managing and monitoring, you can ensure that no lapses occur even if you are not physically present at the office.
6. Saves time and resources
With ERP, many tasks that usually require several man-hours and resources can be accomplished within a very short period of time. ERP is like a machine that keeps running in the background with minimal resources. Apart from eradicating manual data feeding, ERP also avoids data duplication and inaccuracy in maintaining records. Thus, automation through ERP helps in cutting costs drastically in terms of human resources and time.
7. Improves interactions with customers
Imagine a client or a customer who calls a department at your business to enquire about a service or product they had ordered, only to be routed to another department which gives them a totally different answer! Surely you would like to avoid such frustrations for your clients/customers?
An ERP, with its Customer Relationship Management will help you in avoiding such embarrassing situations. It will also help you make the interactions with the clients/customers happen on time, to the right person. This will go a long way in improving the relationship between your business and the customer.
If properly implemented, an ERP system can totally change the workings of any establishment by streamlining its processes and giving total control of the business to the decision makers. In the last decade, there has been substantial increase in the usage of ERP systems as businesses worldwide are recognizing their benefits. With its many advanced tools, ERP can give business owners a huge advantage over their competitors.