What Is Enterprise Resource Planning (ERP)?

Laxmi Sharma · 04 Aug 2021 · 3322 views

What Is ERP (Enterprise Resource Planning)?

It is not easy to run an effective enterprise. It needs excellent knowledge, skills, management of the business process in this competitive era where everyone is in a race to win and win only.

This competitive nature of modern markets compels entrepreneurs to grab every opportunity to accelerate efficiency and move one step ahead of the competitors. The best way to do this is to implement Enterprise Business Solution.

In other words, these solutions help create new tech-savvy, smart companies with the use of the latest technological solutions globally. This is where an ERP system can play a vital role.

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An ERP combines several convention management functions into a rationally integrated system and promotes the flow of information across these functions. ERPs connect every aspect of an enterprise.

How does ERP System work, Types of ERP software, Benefits of ERP, and How to get it successfully Implemented?

Also Read: Top ERP Software Trends

Broadly speaking, an ERP system integrates sales, Accounting, Procurement, Finance, Human Resource Management, supply chain Operations, and Inventories.

The motive of ERP is to serve all divisions for the better upliftment of a business. It is productive, informative as well as accurate. It may allow its users to configure solutions that guide daily operations for their specific functions.

In Terms of James Young, "A GOOD ERP IS MORE THAN JUST GOOD SOFTWARE. IT INVOLVES AN INSTITUTIONAL COMMITMENT TO CONNECTING PEOPLE, PROCESSES, AND RESOURCES.

ERP SYSTEM - What It Is?

ERP system is known to be a perfect suite of ERP applications known to collect effective information from various departments in a shared database. It also creates financial savings by providing the organization-wide perception that spotlight ineffective processes and discloses growth opportunities.

In addition, it has unique features which make it a distinctive competitor in the software business.

It helps to Improve Productivity
Easily and Conveniently Accessible
It Improves Collaboration
Generates Report and Improve your Analytics
Satisfy the Customers

Some very common ERP software are:

SAP BUSINESS ONE
ORACLE NETSUITE
SAP
SAGEINTACT
SAPS/4MANA
ACUMATICA
TALLY
ODOO ERP
SAPBYD
ORACLE EBS

How can an ERP system help you? It is not only important but necessary to understand how an ERP system works. In widespread ERP uses a rationalized database for different business concepts to decrease manual labors. The most crucial factor of this system is the real-time visibility of your daily operations, which improves operational efficiency and profitability.

In addition, it reduces the amount of time when it comes to business value. Depending on the user, the software can be customized to meet the demands of the respective business.

Well, It can be better explained with the help of an example: SALES ORDER

In simple terms, we describe a sales order as an agreement procedure between a customer and salesperson/team/company. ERP illustrates details like -quantity, cost, delivery time, and many more.

This software helps us to examine and distinguish functions across departments. It includes drained costs, quantity terms, and conditions, etc. Sales order processing is the most valuable procedure in order management.

As soon as the sales order is activated, resource issuance commences retrieving raw materials from inventory stock. After that, it will undergo some steps like the order first reaches production stage then to packaging, shipping division. Finally, the sales order is ready to deliver to the customer.

Companies with multiple business replicas have to understand the advantages that come up with ERP.

Here you can see Different Types of ERP Software.

(1) OPEN SOURCE ERP

This software strengthens your ERP source code. It may be attractive to small to medium-sized businesses that want to customize their ERP system with little expenditure. It is particularly advantageous to those businesses who wishes to upgrade their ERP systems with distinctive requirements.

This system controls the update, maintenance, and security management aspects of a platform precisely in the user's hands. It helps you customize your petition to be better suitable for your workplace step by step, evaluate, modify and enhance.

As a result, open Source Software has gained an excellent emplacement in business work. Realistically, open-source ERP and customer relationship management (CRM) solutions are the subsequent moderate step in the process.

Open-source software is a cheaper alternative for small and medium – sizes businesses.

There are many reasons to choose an Open-source software ERP Solution:

It is economical than commercially market products,
It is highly authentic
Formulated by competent and talented people
Premium software
Simple license management
Abundant support

Odoo and ERPNext are a very common and widely used example of open source ERP.

(1.1) ODOO

Odoo is an open-source business app in which customers can allow quotation procedure of the system.

User may have concurred their various processes into a single forum in Odoo software.

Furthermore, Odoo, with its supplementary modules, is there to assist you in enhancing your latest business requirements. Finally, it is also concluded that Odoo is well-known for its efficiency, convenience, and configuration, and, most importantly, secured features.

It is highly customizable and offers both free as well as paid versions.

Request Odoo Demo Now

(1.2) ERPNEXT

ERPNext is an open-source web-based system aimed at small and medium-sized businesses. It helps companies with accounting, Human Resource Management, sales, purchase, inventory, administration, projects, and websites.

ERPNEXT is 100% open source without any Vendor lock-in. You have the unconditional autonomy to choose your vendor without any licensing formalities. It is convenient, customizable as well as economical.

See ERPNext in Action: Contact Us

(2) CLOUD-BASED ERP

An ERP software as – a – service ( SAAS) is suitable for large Enterprises that can easily access internet connections and browsers. It provides core financial and accounting functionality. There are multiple types of cloud ERP available.

(2.1) ORACLE NETSUITE

NetSuite is no. 1 cloud ERP that helps organizations to regulate all key companies under one platform. It is a unique and influential ERP application that suits companies from minor to big-sized, vast enterprises. It empowers unusual, rapidly rising companies to unlock their growth prospects.

It gives companies a clear perception and restraint of their business. It helps to grow earnings, stays formulated, and nurtures customer relationships. The fundamental factors that reflect the importance of NetSuite ERP are:

• It can run the entire financial management process

• Respects customer relationship management & automates business strategies

• Enables universal Enterprise Management

Discover Odoo: Schedule Demo

(3) ON-PREMISE ERP

These systems are reasoned for all sizes however may be suitable for small and medium companies. In addition, this solution offers the security and control of using your own IT infrastructure to fasten your people, processes, and systems.

(4) HYBRID ERP

It is an amalgamation of cloud systems and on – promise. It is also known as the tier-two model due to its bimodal combination of on-premise and cloud systems features.

BENEFITS OF ERP

Suppose you want to see a constructive change in business and experience overall growth. In that case, it is essential to take the crucial steps responsible for improving both productivity and user efficiency. Below are some of the ERP benefits which have to be kept in mind:

(A) To Strengthen Business Reporting:

Implementing an ERP suite across departments means your business has a collective reporting system for every process. Whether you're working on accounting, MMS marketing, or procurement, this is the ideal solution to get organized. ERP software offers a convenient environment for quick and easy submitting all kinds of getting manufacturing companies.

(B) Incorporated Information:

It allows you to incorporate platforms like CRM software with your ERP software, keeping data compatible, accurate and unique. It automatically updates its information. This helps to improve your data accuracy.

(C) Better Customer Service

It enables effective and better access to customer information, sales, and orders. Thus a single data is used and maintained to improve on-time delivery. It not only enhances order accuracy but on-time delivery also. It has a centralized data storage that accumulates all critical information on sales and clientele, making it easier for the sales manager and customer support staff to communicate with clients.

(D) Better Competitiveness in the Market

It gives an extra device to outperform the competitors. By choosing the best ERP solutions, some companies flourish their businesses with the latest technological advances and earn profit.

(E) Better Data and Cloud Security

It usually avoids inducting unfavorable software. It circulates data across multiple servers and enhances coalition throughout the organization. Its significant role here is to protect users, apps, and data. So you will get complete cloud-delivered security to all users anytime, anywhere.

(F) Standardized Business Processes

It allows businesses to standardize their processes and system, which furthers productivity and efficiency.

(G) Improved Participation and Workflow

Participation is an essential element of a growing business. ERP platform provides the employees with access to the data whenever required. Therefore, it may directly increase efficiency and reduce operational costs.

Book personalized demo to know, how can an ERP System bring tons of benefits to your business. Schedule your ERP Demo now

How To Do ERP Implementation Successfully

An ERP implementation involves:

• Installing the software.

• Setting up master data.

• Doing the correct configuration.

• Migrating transactional data from legacy systems /excel.

However, despite the truth that approximately every ERP implementation process is quite complex and demanding, the best way to plan forward is to conclude what you expect your ERP system to achieve before installing.

There are many vital factors in the ERP system implementation. Some of them are as under:

1.) A Clear Business Plan

It guides the project throughout the entire ERP Process. Many ERP implementations have failed due to a lack of clear plans in hand. Therefore, it is essential to set the goals before ERP implementation. It mainly indicates the main objectives and targets to accomplish these goals.

2.) Project Management

- It plays an integral part in the project implementation.

- Here project management sets deadlines, examines and proposes modifications according to the current needs of the company.

- It selects the structured project technique, which is the key to success.

3.) Role of Teamwork

Selection of the right team members and allocating different departments and responsibilities to them according to their knowledge, skill, experience. This makes it even more significant to withstand any challenge as a team. with the help of different points of view, it gives moral support and motivation to achieve the target.

4.) User Involvement

It is also one of the crucial factors. User participation has a very encouraging impact .it may lead to an acceptable system of requirements. The more the user participates in the project plan, the more the user is assured. Users are the support system and lay a positive impact during the implementation process.

5.) Pedagogy and Training

It is not possible without proper IT skills. Substantial education and training in this field can promote success for ERP. It is noticeable to increase the mastery and proficiency level of users within the company.

6.) Plan a Budget

It guides organizations to comprehend how, when, And why they need to expand in business. Proper planning, estimation of income and expenditure, and guides the management in bringing about the right decisions at the right time.

Specifically, we would like to add that, to adapt to this competitive business domain, organizations are eager to implement ERP systems to be more competitive and responsive to clients' desires.

How Kanak Infosystems LLP. can help you in getting an ERP Implemented for your Organization.

We, KanakInfosystems LLP., are always there to provide the best software that meets your company's prerequisite needs and objectives. We have a team of Experts ERP consultants who are willing to help clients improve their business practices.

We provide the best service of ERP implementation successfully with proper strategies, functionalities, reliability, budget, quality, and the most important, commitment and dedication. SO, without any hesitation and confusion, you can anytime contact or send a request to [email protected]