ERP is an integrated computer-based system designed to streamline and integrate operation processes and information flows in the company to synergize the resources of an organization. The main purpose of enterprise resource planning is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
ERP software is built on a centralized database and normally utilizes a common computing platform. It is the latest and advanced high end solution, information technology has lent to business application. ERP can help a company reduce operating cost and improves the coordination of the company's process into one streamlined process where everything can be accessed through one enterprise wide information network.
Benefits of ERP Software
Real time information throughout the company
Better visibility into the performance of operational areas
Data standardization and accuracy across the enterprise
Best-practices and methodologies are included in the applications
Improves organizational efficiencies
Allows for analysis and reporting for long-term planning
Improves information access and management
Provides an integrated customer database usable by all applications
Better monitoring and quicker resolution of queries
Faster response and follow up on customers
Improved cost control
Greater accuracy of information with better presentation
Reduces paper documents by providing online formats for quickly entering and retrieving information
Increasing Importance of ERP Software
ERP software is a strategic tool helping an organization to gain an edge over its competitors by helping in integrating its key business operations, synchronizing, planning and optimizing the resources available in the existing competitive environment. The integration of the business processes improves coordination between bodies and streamlines workflows and processes. ERP software helps in the automation of business processes of an organization. It helps organizations to integrate all the functions of a business such as finance, accounts and human resources on to a single framework.
Enterprise resource planning systems enhance management decision making by making future projections about sales during a certain period of a certain product. Management would then be able to make decisions whether to increase or decrease production of that particular product which in turn would help save resources from being wasted which could be used for other purposes.
Enterprise resource planning software help in improvements in various processes like production management, supply chain and customer relationship management. Incremental improvements in these systems help businesses to respond faster to the queries of their customers. By providing a responsive and alert customer service businesses can develop a loyal base of customers.
ERP software can transform the way companies conduct their businesses and can be a source of sustainable advantage in the marketplace.