ERP solutions are ruling the marketplace these days. Being surprised by its popularity many of us still wonder about why implement an ERP system in the business. We will try to dig out all the possible answers today and discuss how we can simplify our existing situation by replacing it with a new ERP system.
ERP solution is the process of sewing the scattered yet valuable parts of business together in one thread. It doesn’t matter if you are a start-up or already an enterprise, those parts will always be there. This is why you need to implement an ERP solution.
Why Implement an ERP System?
Abbreviation of ERP is Enterprise Resource Planning. ERP is not a new concept in business. It has been there since the nineteenth century. But the pattern of business has changed and territory has been expanded beyond borders. Again ownership in business became an issue too. This issue brought security concern with it.
This is when people realized they should move onto something bigger for ERP management. Gradually they started to understand why implementing an ERP system is important and popularity of ERP rose to all-time high.
Businessmen mapped out different sectors that go behind building a company despite its size. There is not much debate about the functional areas of ERP. Take a moment to your self and imagine setting up a simple shop. What are the things you are going to need?
You will need capital, a plan, maintenance of the plan and the goods you bought. You have to think about the customers and so on. ERP alone works on all of those. In fact, experts ran a survey on 650 people who revealed what they look for in an ERP software when they decide to switch to one. If we try to put those on official terms they will be:
Functional Areas of ERP
- Accounting: It is the ultimate financial system of a company. ERP looks after the financial arrangement and users love the system. Above 90% users stated, they would like to have accounting management in their ERP software.
- Project Management: The name itself declares the activities of the field. Project management includes planning, risk-taking, execution; everything and this came second in buyers favorite list.
- Manufacturing: After managing projects the manufacturing has also been automated by ERP solution. This way users can keep better track of their products and services.
- Customer Relation Management: This sector is directly not a part of enterprise resource planning. But this is one difficult task to be performed. This is why ERP now works in integration with the CRM system.
- Human Resource sector: Human resource include what kind of employees should be in your company, how to manage the existing ones and how to recruit new ones.
- Business intelligence: ERP apps are usually instinctive. After working on all of these sectors, ERP acts as
business assistant by forecasting results.
Probably these are major reasons for adopting ERP software leaving the old one behind. But you should be 100% certain that you want to switch to the new system. You may need suggestions for that. Here is an article with suggestions that can help you.
5 Steps To A Better ERP System Implementation For Your Small Business.
Simplifying Business with ERP Solution in Different Ways
If we start talking about how you can be benefited from ERP solution it will take hours as ERP’s working sector is vast. Benefits are different things that come after simplification. We should find out the ways we can make our business easier with ERP solution. From the sectors described above, we circled down major 10 ways you can simplify your business by introducing ERP software to it.
1. Bring the Wind of Change:
When you have migrated to ERP software, it is obvious that your previous system was not working for you. A change is always refreshing. It may be a little difficult to adopt at first but in most cases it brings positive results. Automation in resource planning will bring such change by reducing system loss at great.
2. Be Able to Make Simple Plans:
You are getting to control all your sectors using one solution. In spite of supervising the HR, accounting, manufacturing individually you can set goals for all of those in one click. This surely gives you
3. Saves Time and Deal with Human Resource Better:
When you have an ERP software, the workload becomes half. In reference to the last field, when you make goals in one click this saves your time. Again, in the human resource department, starting from recruitment to management, everything gets automated with ERP. Paperworks are rare and documents are easier to be taken care of.
4. Taking care of the Manufacturing System:
After managing your employees its time to concentrate on your goods. With automated manufacturing system you get clear reports of your storage. It informs you regularly of your warehouse condition. You are alarmed before the stock is empty and your products never go out of the market.
5. Get Flawless Reports:
Documents of your employee’s activities are updated regularly, you are well aware of your stock conditions, you have your company’s history on your hand, what else do you need to make a report after these? So it only makes sense to have flawless reports with ERP software whenever you want.
6. Deal with Customers Better:
As we said before CRM is a different entity. But users love it when ERP works in collaboration with a CRM system. Because a CRM system tracks customers habit, age, preferences better; which ultimately comes to aid in business. When ERP and CRM work together they share information and provides the best result.
7. Reducing Technical Cost:
Well, somehow there is a myth that ERP is an expensive solution to use. In reality, ERP actually is a cost-effective solution. This saves you from the cost that you had to pay to the employees appointed for all the works that ERP does. This as well saves you from working with delicate paperwork.
8. Bring Transparency in Work:
It is said before that all the reports are ready made and precise with ERP. When you have all the reports ready before your eyes it is certain that it will bring transparency in your work. This transparency helps you build a reciprocative trust between you and your employees.
9. Better Communication:
As a result of the trust mentioned in the earlier stage, you create a bridge of better communication. Better communication gives employees a positive vibe
10. Polished Business Plan
A better communication undoubtably brings out a better and polished business plan. We already know that ERP is intuitive in nature.
Wrapping Up!
You always find ways to reduce your system loss and upsurging productivity. You keep experimenting with different systems before settling down to one. When you are running your experiments, you should know how a system can help in which ways.
This was an attempt to show you how ERP simplifies your work by bringing all under one roof. You can always share with us if you think we missed some points! But, for your further clarification, you can check
“How Can You Walk Through the Road to Success With ERP”.
