What is 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

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. Run a more agile
and efficient business.

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 are 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.