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Introduction to ERP System and why YOU need it

What is an ERP system? Enterprise Resource Planning (ERP) is a type of business management software that gathers and tracks data related to the entire operation of a company. It provides an integrated system for managing all aspects of production and service provision.

When it comes to system implementation, one of the basic elements that are required is ERP software. ERP stands for enterprise resource planning and this software system is a multi-module application that helps in the internal business process management. Nowadays, there are a lot of ERP vendors available who provide specialized applications such as accounting software, sales force automation, warehouse management, human resources software, and many others.

Every company needs a core transactional system to handle important features of the business. ERP system is a complete integrated system which provides the basis for the company’s business process. Some of the important components of ERP Systems are as follows:

  • Day to day management: ERP helps in tracking financials, managing the day to day operations of the business.

 

  • A data warehouse associated with the ERP: This is used to store the important information which is retrieved from the database on a daily basis. This data warehouse stores sales, customer data, fixed assets, warehouses, products, and sales.

 

  • Functional side tracking: ERP system has functional modules which are enabling the company to run the business smoothly. From the point of view of the customers, one of the best features of ERP is its ability to track the flow of the sale.

 

  • Inventory management: ERP as well has the feature of inventory management. It keeps track of the inventory required by the company. As per the directions of the company, the inventory of the company is managed by the ERP.

 

  • Marketing: ERP drives the process of collecting the marketing data of the company and making sure that the strategies implemented by the company on the basis of this data turn out to be successful. In other words, ERP is the platform empowered with the ability to make decisions regarding the sales of the company and also to take decisions concerning the costing of the company.

 

  • Financial management: ERP accounting system provides the financial management feature within the entire organization. The ERP windows also help the company to manage the various other functions like accounts payable, accounts receivable, barcode tracking and distribution, general ledger, inventory, customer relationship management and payroll, generation of reports and bore.–traditional trigridation: ERP has the capability to bind traditional systems of the company and make them web enabled.

 

  • Integration: The ERP software systems are completely integrated. With the help of this integration the company will be able to communicate with the suppliers and customers and will be able to track the transactions precisely and in real time.

 

  • Software Customization: ERP provides customization features for all kinds of parameters like product, service, channel, and pricing and for managing the websites. Also, the products and services can be customized by providing personalization features.

 

  • User Training: The ERP system is user friendly; there is no need for business professionals to learn complicated ERP systems. Small business owners can also learn the system through online training, videos, or through other modes of support.
Here are some of the most popular Business Intelligence Tools/Programs:

(Source: Top 10 ERP Software Leaders by Analyst Rating(of 133 products))

Importance of Choosing an ERP System That Fits Your Needs

ERP systems are typically employed in organizations that involve a very large number of transactions and high complexity. So, the right ERP system for your company and its needs is critical. And the wrong one can be a disaster. Don’t let that happen to you or your business!

A company should focus on four main aspects when choosing an ERP system: the data integration capability, the system’s functionality, its flexibility and scalability, and lastly its security. Choosing the right ERP system can be difficult because there are hundreds of ERP systems to choose from. Hence, it is important to first think about what you need and then find a system that has these capabilities.

We’ve previously discussed Business Intelligence Software

How is it different from the ERP System? I got confused, you might be as well. So, how are they different? The ERP System collects corporate data, whereas Business Intelligence software analyzes the enterprise data, providing the business with a clearer picture and understanding of the company’s performance. Both can be said to go hand in hand if the suitable ERP system and BI are used throughout the business for superior organizational decision making.

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