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When you hear someone talking about digitization and digital transformation of the work, you can often hear the word ERP. But what exactly is ERP and what’s its purpose in business?
ERP or enterprise resource planning is actually a process companies use to manage and integrate the important parts of their businesses. To do that, companies use ERP software that helps them implement resource planning through integration of all processes into a single system. Basically, with ERP you take all processes you had in different systems in your company, and combine them in one perfectly operating system. Whether it’s purchasing, inventory, marketing, sales, finance, human resources, production, logistics or anything else you might need and use.
With ERP software and its different applications, you’re enabling different departments to communicate and share information easily among themselves and with the rest of the company. Not only that, but you can track what’s happening in the company and react before problems occur.
Nowadays most ERP software is cloud or web-based. It means that clients don’t have to invest into new hardware and servers. Everything is remote, but always accessible.
We could summon it up into just a few words – it saves time and money while improving operations and productivity.
Since every company is different, the benefits of ERP software for a single company may differ from the other. But integration and automatisation of business processes is something every company that implements ERP has in common. It improves accuracy and productivity, synchronizes work between departments and in the end enables faster and better outcomes.
The biggest value of ERP is keeping everything in one place and in one system. That allows companies quick access to any information they need when they need it – whether it’s about clients, vendors or employees. Better communication and collaboration between departments, also mean that menial tasks, such as searching for information, tracking orders or even looking for some piece of paper in human resources, that took time but weren’t productive are now eliminated.
If you want your company to run smoothly and efficiently, with reduced costs, then the answer is – YES.
But for ERP to fulfill its purpose, companies have to be prepared to change. ERP is not a magical wand that’s going to transport a company from analog to digital age, and carry out digital transformation in a blink of an eye.
The biggest obstacle in making an ERP system successful is – reluctance to abandon old working processes or software. The change has to be complete and through the whole company – in software, hardware and way the things work.
If a company doesn’t rethink the way it does its business, ERP can turn from a great idea and project that can save money, to cost overruns and frustration.
To avoid such scenarios it’s important to make an executive decision about implementation of ERP and find a great partner and ERP solutions provider to help you with the whole process.
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ERP’s (enterprise resource planning) or business application solutions are, simply
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