Why Your Business Needs an ERP System: Benefits and Examples

Keywords: enterprise resource planning, enterprise resource planning systems, enterprise resource management, erp, erp enterprise resource , erp’s, erp system, erp enterprise resource planning, enterprise resource management system, enterprise resource system, it erp system, erp enterprise resource planning system, enterprise research planning, enterprise resource program erp, erp meaning, erp definition, enterprise resource planning definition, define enterprise resource planning, enterprise resource planning systems definition, define enterprise resource planning erp, software for accounting, cloud oracle, erp software, enterprise resource planning software, enterprise resource management software.

ERP or Enterprise Resource Planning systems help companies integrate various aspects of their operations, from personnel management to accounting. Using ERP, organizations can streamline processes, reduce costs, and make informed decisions based on accurate data. As a result, this optimization of work processes and cost reduction positively impacts the company’s immediate productivity and competitiveness.

In this article, we will explore an ERP system, its main components, and how this software can change the way you do business.

The Definition of Enterprise Resource Planning

ERP (Enterprise Resource Planning) is software companies use to manage internal processes such as accounting, project management, risk management, etc. Such software helps businesses better plan their activities, calculate their budget, predict the success of their campaigns, and calculate the possible profit or loss.

Modern ERP systems combine many functions in one program and are also equipped with the latest technologies, such as artificial intelligence and machine learning. The newest technologies make the management and optimization of processes within the company more transparent and accurate.

A Guide to the Different Modules of Enterprise Resource Planning

ERP systems are built based on one platform and have one large database. Company data is entered into one large database and synchronized with each other in real-time. Nevertheless, ERP systems contain a variety of modules, each of which is divided by functionality and sector for which each module is responsible. The company is not obliged to use all the modules offered by the program, but to use only those that are a priority for the company itself. Modules of ERP systems are responsible for the following areas:

Finance. This module is responsible for managing finances within the company. It is considered the most important for the company, because it is responsible for accounting, calculating the profit received by the company. This system has tools for tracking, storing, and analyzing activities within the company using payer accounts, payee accounts, and the general ledger.

Personnel management. This module is designed for HR department and is responsible for hiring, employment, and organization of the employee’s work. It also contains tools for centralization and recording of employee productivity, as well as the tracked number of working hours, sick leave, etc.

Procurement. This module improves and optimizes the procurement of materials for manufacturing of goods. Using a list of approved sellers, this module automates the purchase of goods. Thus, the procurement process is faster, cost compliance is ensured, relations with suppliers are improved, and last but not least, the profitability of the companies themselves increases.
Logistics. This module includes tracking and optimizing the operation of supply chains at all stages of production: from the extraction of raw materials to the completion of the finished product and its delivery to the end user.

Sales. This module optimizes all processes related to sales. In particular, this module contains tools for tracking the entire sales flow, predicting sales results, and optimizing and automating tasks.

Understanding ERP’s Benefits

By implementing an ERP system, enterprises receive several advantages, among which the following can be mentioned:

Centralized data storage system. The key advantage of an ERP system is that it collects basic data from different departments of the company, processes it, and stores it in one database. Access to data stored in the same database allows employees to find the necessary information faster and complete their tasks faster.

The ability to predict the success of campaigns and profits. ERP systems contain a toolset that can predict the result of business activities, based on previous company data stored in the database. Since the data is stored in one system, the forecasts regarding business activities with the help of the ERP system are more reliable and accurate. Thanks to more accurate forecasts, entrepreneurs can better prepare for what awaits them.

Productivity improvement. With the simplification and automation of tasks, business productivity increases. The level of productivity of companies that implemented an ERP system increased by 42%. With the simplification and automation of simple, routine tasks, company employees can focus their attention and efforts on more complex and serious tasks. In addition, an ERP system with a set of automation tools also allows you to reduce the number of live workers who perform less important tasks. And, in this way, companies can save on salary payments, sick leave, covering the costs of training courses, equipment repairs, etc.

Increased level of security. The cloud ERP system has reliable data protection mechanisms since all data is stored in one place. Without this system, the level of data security is much lower, because different tables and records scattered across different servers have different levels of security, and there is no guarantee that a leak will not occur.

Although the data is stored on a single system, this system is distributed across multiple servers to create backups in the event of a major system failure.

Increased collaboration. Tools for automating work and centralizing data storage accelerate collective work between employees. It’s because the company’s employees are in the same system, have approximately the same access to the data stored in the ERP system, and can see the changes made to the system.

Examples of Leading Enterprise Resource Management Systems

One of the first examples of the most successful ERP systems is Microsoft Dynamics 365. It is an integrated package for managing business processes within the company and is designed to improve sales, customer service, finance, marketing, and automation of project services. Microsoft Dynamics 365 integrates with other Microsoft software such as Excel, Word, Teams, Yammer, OneNote, Azure, and Power BI. In particular, this ERP system is popular because this platform is considered one of the most reliable and secure and has more than 70 certificates of compliance with cyber security requirements.

Another example of a popular ERP system is SAP Business One. The main audience of this platform is small and medium-sized businesses. The main goal of SAP Business One is the automation of key functions of enterprises in finance, human resources, accounting, production, etc. SAP Business One also stands out for its flexibility and scalability, taking into account all the needs of each company. Also, this ERP system is popular among small and medium-sized businesses because of its affordable cost, and it can also be quickly mastered. A company can deploy SAP Business One cloud storage, and use the platform through a mobile application.

NetSuite is a cloud-based ERP system designed to work with medium-sized businesses and is built on the basic principles of SaaS. Under this model, the user buys a subscription to get access to the technology but is not responsible for installing software, configuring servers, and other processes related to the underlying infrastructure. This platform manages and automates business processes in finance, internal business operations, client interaction, and other areas.

ERP systems have proven to be effective tools for enterprises that optimize their activities and wish to remain competitive. By implementing ERP, small, medium, and large companies can focus on more important strategic tasks, and improve resource management and transparency in all internal business processes. Solutions such as Netsuite, Microsoft Dynamics 365, and SAP Oracle offer flexible, scalable, and secure solutions that meet the many needs of companies in various industries, be it trade, manufacturing, finance, etc.

For many enterprises, ERP systems have become the tool for achieving goals and ensuring sustainable growth in a rapidly developing market. Therefore, understanding and using the opportunities provided by ERP can be the key to success in your business.

Tags: enterprise resource planning, enterprise resource management, erp, erp system, enterprise resource program, erp definition, enterprise resource planning definition, software for accounting, cloud oracle, erp software, enterprise resource planning software

Для кого пишемо статтю	Представники підприємств, які шукають інформацію про те, як оптимізувати свою бізнес-діяльність
Питання, які цікавлять клієнтів	Які є приклади ERP-системи?Чому використовується ERP-система?Які є 5 основних компонентів ERP-системи?Яка є важливість ERP-системи?
Ключові слова	enterprise resource planning enterprise resource planning systems enterprise resource managementerp erp enterprise resource erp’s erp system erp enterprise resource planning enterprise resource management systementerprise resource systemit erp system erp enterprise resource planning system enterprise research planning enterprise resource program erp erp meaning erp definition enterprise resource planning definition define enterprise resource planning enterprise resource planning systems definition define enterprise resource planning erp software for accountingcloud oracleerp software enterprise resource planning softwareenterprise resource management software
Що ми пропонуємо нашій аудиторії	Інформацію про те, що таке ERP, які є типицієї системи, її основні компоненти, та що вона дає бізнесам
Мета тексту. Навіщо ми це робимо?	Ми створюємо цей текст, аби пояснити своїм читачам користь від введення в роботу ERP-системи
Перелінковка	https://tunelab.net/ai-machine-learning/strategic-insights-on-it-solutions-for-smart-data-management-and-analysis/
Попередня структура тексту	ВступВисновок
Чим підтверджуємо експертність	Наш Showcase: https://tunelab.net/showcase/