What is ERP and why do you need it?
ERP is an acronym that stands for enterprise resource planning (ERP). It’s a business process management software that manages and integrates a company’s financials, supply chain, operations, commerce, reporting, manufacturing, and human resource activities. Most companies have some form of finance and operational system in place but most of the software that’s out there can’t go beyond everyday business processes or help with future business growth.
As company’s needs change and they expand, their systems should keep up with them. We’ll define what ERP is and why it’s smart to have software in place that keeps up with your business needs.
Why ERP is critical for your businesses
While there’s no all-up solution software for every business process, ERP technology is getting better and better at bringing processes together. Once your processes, systems, and data are connected, you’ll get the intelligence, acceleration, and adaptability you need to start optimising your operations.
Here’s three ways ERP can improve your business:
1Drive optimal performance
With solutions that integrate artificial intelligence (AI), you’ll access insights that enhance your decision making and reveal ways to improve operational performance going forward.
2Accelerate operational impact
By connecting processes and data, you’ll bring more visibility and flexibility to employees to help them take action quickly and deliver more value across the business.
3Ensure 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.
Three signs that you need ERP
If you’re reading this and struggling with your legacy system, you probably already know that implementation is in your future, but here are the signs that you definitely need new ERP starting today:
1The basics aren’t letting you grow
Perhaps you’ve been doing fine with basics, 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 does.
2You’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.
3You 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. If you feel like you can’t afford to invest in meeting your customer’s expectations, and you’re not willing to give your staff the tools they need to succeed, you’ll lose them to a competing business pure and simple.
Why some businesses are afraid to embrace ERP implementation
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 fear, there’s a solution.
FEAR: How do I know I’m choosing the right ERP solution for my business?
You don’t have to find the perfect software solution to fix everything. ERP should actually be able to take the best of the business processes you’re using now and bring them together under one system, while letting everyone in your organisation view the same information. This is where your choice of at technology partner is important.
FEAR: We can’t afford a major ERP overhaul.
A solution doesn’t have to be an all or nothing implementation proposition. Software solution modules can be purchased separately depending on your business needs. This will help your team ease into the implementation piece of ERP and it’ll save having to invest in a major software renovation without knowing whether or not the functions you’re adding will pay off.
FEAR: We don’t want to lose the systems we have in place now.
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.