What is ERP? Jan 19, 2018Views: 267
Enterprise Resource Planning, or its acronym ERP refers to software or systems which are used by organisations and businesses to manage their daily operations, such as production and manufacturing, accounting, procurement, customer relationship management, document management and order processing.
ERP systems can be extremely broad but generally, they bring together a wide range of business processes enabling the flow of information and data between them. By collating information shared between different departments or processes, a good ERP system will eliminate the duplication of data and provide data integrity and security.
In the modern world, ERP software is critical for managing thousands of businesses of all shapes and sizes throughout many different industries.
The Introduction of GDPR in 2018
The handling of data has been a hot topic in recent years; it is currently under the spotlight with the imminent arrival of the new General Data Protection Regulation (GDPR) being introduced in the UK in May 2018. Businesses need to ensure they are compliant with the new GDPR. Implementing an ERP system to store your company information can help mitigate against the risks of data being shared between multiple business processes and teams, improving data security and ensuring compliance.
Improve Efficiency with ERP Software
There are various key benefits to implementing ERP within an organisation or business, the end product of these is improved efficiency.
Central Database to Avoid Duplication
The central principle of ERP software is the shared collection and storage of data, which can be distributed seamlessly throughout an organisation. This data is stored within one central database giving each department the opportunity to access the data they require efficiently and quickly. By implementing this central database an ERP system is designed to reduce the amount of information and data which is duplicated, keeping records up-to-date.
Departments or teams are able to work more closely together, workflows can be automated between multiple departments, and information can flow much more easily and smoothly. This ensures tasks are completed more efficiently.
Enhanced Visibility of Information
ERP software ensures that each process is visible to all departments and senior management throughout the business. Giving the entire organisation the ability to be ‘on the same page’ when it comes to up-to-date information on the projects or services they are delivering.
Central Reporting System
ERP systems take advantage of a central reporting system, this can involve real-time reports which are available to each department within an organisation. Reporting is based around the data stored within the central database, each department can use up-to-date information and share with the senior management team or with other departments.
Adaptable to Specific Business Requirements
One of the key strengths of any ERP software is tying all processes together into one seamless system. Every business or organisation is different and has its own individual way of working. ERP can take these backend systems and link them together enabling the flow of information between them.
A quality ERP system and a sound implementation methodology should enable a close fit for a wide variety of businesses in myriad of industries. The solution should be able to adapt to specific business requirements, as they stand now and to how they may change in the future. Ideally, the ERP system should allow for a certain amount of adaptability by the client themselves.
Lower Operational Costs
Improving the flow of information between departments helps improve the efficiency of business processes. The ability to obtain accurate data at any stage means individuals and departments waste less time, in turn improving operations, saving the business money.
Reliability in the Data
As data is stored in only one place the reliability of the information available is increased. Records are updated by multiple departments meaning information in the database is ‘live’, there is reduced risk of data being outdated or duplicated.
ERP systems help to drive the efficiency and productivity of an organisation, they take multiple back end systems and integrate them together to create one central store of information, used for reporting and the management of business processes. Each department and employee has relevant up-to-date information, meaning they can perform their tasks more efficiently ultimately saving the business time and money.
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