Enterprise Resource Planning (ERP) can be defined in a plethora of ways. Many experts have described ERP in their own words and when compared, they can all be little confusing, although they point to the same title. An ERP system is a must-have in an organization nowadays and even its implementation differs from one to another. All these differences indicate the flexibility that makes the ERP system such a powerful tool in every business. Through this blog, you will gain a better knowledge of ERP and the use of ERP systems in organizations.
Gartner in 1990 coined the term ‘ERP’, however, its history dates back to 1960s. Back then, the concept of ERP was applied to inventory management and control in the manufacturing sector only. As technology developed, software developers developed programs intended to monitor the inventory, reconcile the balance, as well as generate report on the status. During the 1970s, engineers could come up with material requirements planning (MRP) systems programmed to schedule production processes. In the 1980s, the MRP witnessed a stunning growth to encompass additional manufacturing processes, due to which many called it MRP- II. By the year 1990, the initial system has evolved into a more sophisticated one which could provide features such as expense management/accounting and human resource, in addition to the above-mentioned features.
Spare a minute and think about the various processes taking place in an organization in this 21st century — starting from running a business to inventory management, order management, expense management, human resource management and customer relationship management (CRM), among others. Basically, the ERP systems integrate all these modules into a single system, thereby streamlining the processes. The ERP systems hold a shared database which supports the various functions taking place in different departments of the organization. This clearly signifies that the personnel from different departments can access the same shared data.
The aforementioned feature can otherwise be explained as the ease of synchronizing reports. The staff need not maintain separate databases and documents manually but can generate reports automatically from the ERP system in use in their organization. Another popular ERP feature is that it includes a portal or a dashboard that enable the workforce to understand the business performance on key metrics swiftly. This aids in saving a considerable amount of time, which can be utilized for completing any other productive task.
More advanced ERP systems we see now can encompass business intelligence (BA), which could handle front-office operations like sales force automation (SFA), e-commerce, marketing automation, etc. The ERP system has undergone numerous developmental phases throughout these years. Many companies — regardless of the size — have implemented ERP systems in their organizations. These systems can be tailored as per the user requirement, which is an added advantage.
The rapid increase in popularity of ERP systems is fuelled by the arrival of cloud computing aka Software-as-a-Service (SaaS) solutions. Cloud-based solutions make the ERP systems easier to implement and manage. In addition, it has made the software more affordable, owing to which many mid-size companies implement the ERP systems without hesitation. More importantly, cloud ERP allows real-time reporting and business intelligence, which in turn make them extremely useful for staff seeking business insights.
Driven by the multifarious advantages, a broad range of industries are transitioning to Cloud ERP Software. Overall, the ERP system aids the employees in performing their work with ease and more efficiently by eradicating the barriers between different departments. In a nutshell, an advanced ERP solution offers:
- Global, real-time view of data
- Improves financial compliance
- Automates core business operations
- Enhances customer service
With the increasing popularity of cross-border business relations, a majority of companies invest in ERP systems to ensure that their internal systems can support and improve business models. For this, one must think from a long-term perspective rather considering the current requirement and investing in it only. Technology is advancing at a lightning speed, hence, especially for businesses, they must be ready for any upward integration of software and technologies at any instant.
Business growth is the ultimate aim of all investments, whether it is in the form of human resources, inventories, software or devices. Considering all the advantages discussed above, the value of ERP is immeasurable for a flourishing business. With an efficient ERP solution, employees have the ease of accessing accurate information required for decision making with a single click. Moreover, ERP system aids in eliminating repetitive tasks, thereby drastically lowering the overall expense of a business.
At Lagoon Technologies, we offer ERP modules mainly focused on procurement management, sales order processing, financial accounting, human resources and inventory management. However, all our products and services are made-to-order, satisfying all the criteria set by our clients. You can get in touch with us for more details on our product, Atoll ERP, which has already been deployed in many of the esteemed organizations in the region. For all your ERP software related queries, feel free to contact us or leave a comment here.