Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is a type of software system that helps

organizations automate and manage core business processes for optimal performance.
ERP software coordinates the flow of data between a company’s business processes,
providing a single source of truth and streamlining operations across the enterprise. It’s
capable of linking a company’s financials, supply chain, operations, commerce,
reporting, manufacturing, and human resources activities on one platform.

Most companies have a finance and operational system in place, but siloed systems
can’t go beyond everyday business processes or help with future business growth. As
companies expand and their needs change, their systems should keep up with them. In
this article, you’ll learn what ERP is and why having software in place that keeps up with
your needs can help run a more agile and efficient business.

Modern ERP Software Systems

Historically, ERP systems were suites that worked separately and didn’t talk with other
systems. Each system required expensive, complex, and customized code to meet
unique business requirements, which slowed—or even prevented—the adoption of new
technology or process optimization.

What makes today’s ERP software different is that it brings all these different processes
together in one fluid system. It doesn’t just offer data connectivity within your ERP
system, but also within your productivity tools, e-commerce, and even customer
engagement solutions. It enables you to connect all your data for better insights that
help you to optimize your processes across your entire business.

In addition, a modern ERP solution offers flexible deployment options, improved

security and privacy, sustainability, and low-code customization. But most importantly,
it builds continuity and resiliency into your business and processes through insights that
help you innovate at a rapid rate today while preparing your business for what’s next.

Why is ERP important for business?

While there’s no all-up solution for every business process, ERP technology is getting
better and better at bringing processes together. After your processes, systems, and
data are connected, you’ll get the business intelligence, acceleration, and adaptability
you need to start optimizing your operations.
 Here are three ways an ERP system can improve your business:

1. Drive optimal performance. With solutions that use AI, you’ll access insights that
enhance your decision making and reveal ways to improve operational performance
going forward.
2. Accelerate operational impact. By connecting processes and data, you’ll bring more
visibility and flexibility to employees, helping them take action quickly and deliver more
value across the business.
3. Ensure business agility. Many ERP solutions are built to adapt to your needs and grow
with you, helping you proactively prepare for—and readily respond to—any operational
disruption or market change.

What business functions can be optimized with ERP?

An ERP system can cover many core functions across your organization—helping break
down the barriers between the front office and back office while offering the ability to
adapt your solution to new business priorities. Some of the key business
functions include:

 Commerce

Today’s retailers face many challenges, and an ERP system can deliver a
complete, omnichannel commerce solution that unifies back-office, in-store, and digital
experiences. Customers get a more personalized and seamless shopping experience
through AI recommendations, while retailers increase employee productivity, help
reduce fraud, and grow their business.

 Finance

Modern ERP increases profitability while driving compliance. It offers dashboards and
AI-driven insights that give an overview of your finances to help you tap into the real-
time information anytime and anywhere. It should also cut down on entering
information manually by automating daily tasks and include tracking abilities that help
with your business’s regulatory compliance.

 Human resources

Modern solutions offer ways to manage company data and streamline employee
management tasks like payroll, hiring, and other duties. You’ll be in a better position to
help retain, recruit, and empower employees while also tracking employee performance
and to help you identify HR problems before they happen.
  Manufacturing

This ERP capability improves business communication, automates daily processes

through robotic process automation, and offers manufacturers the ability to fulfill
customer needs and manage resources by accessing real-time data. It also optimizes
project management, cost management, and production planning.

 Supply chain

If your company is still entering information by hand and trying to track down inventory
in your warehouse, you can save time and money by automating these processes with
ERP. Modern supply chain solutions also offer dashboards, business intelligence, and
even Internet of Things (IoT) technology to help you get a handle on your
inventory management.

Three signs that you need ERP software

If you’re reading this and struggling with your legacy system, you might be wondering if
this is the right time to make a change. Here are some signs that you need new
ERP software:

1. The basics aren’t letting you grow: Perhaps you’ve been doing fine with basic tools, but
if your current software is putting limits on your market expansion and ability to grow
on a global scale, it may be time for a better ERP system that is flexible enough to allow
for growth.
2. You’re dealing with disparate systems: As technology changes, you’re noticing that
your disparate systems don’t work well together. You may notice that your new
accounting software isn’t compatible with your old HR system, and you’re tired of
wasting time and resources trying to stitch a solution together.
3. You can’t meet customer expectations: If your staff and customers are mobile and your
system isn’t accommodating them, it’s time to invest in one that meets everyone’s
needs. Giving your staff the tools they need to succeed and investing in meeting your
customers’ expectations can help you maintain your competitive edge.

TIP: If you or your staff is asking for a new system and there’s a resistance to an ERP
change, schedule a demo so everyone can see what’s out there. When everyone feels
like they’re included in the decision process, it’ll make implementation much easier.
Three ERP implementation challenges for businesses

Despite all the options out there, some companies are still hesitant about implementing
ERP. There could be many reasons why, but where there’s a challenge, there’s a
solution.

 Choosing the right ERP solution

You don’t have to find the perfect software solution to fix everything. ERP should be
able to take the best of the business processes you’re using now and bring them
together under one system that allows everyone in your organization to view the same
information. This is why choosing the right technology partner is important.

 Affording the cost of an ERP system

A solution doesn’t have to be an all-or-nothing implementation. Software solution

modules can be purchased separately according to your business needs. This will help
your team ease into the implementation piece of ERP, and it’ll save you from having to
invest in a major software renovation without knowing whether the functions you’re
adding will pay off.

 Integrating new ERP software with existing software.

As we mentioned, any ERP solution you choose should work with what you’re using now
but also include features that can help in your future growth. For instance, if the
software you have mostly handles the financial, supply chain, and manufacturing sides
of your business, you may want to look for a solution that brings in a strong business
intelligence component.