ERP, which stands for Enterprise Resource Planning, is a system that allows companies to efficiently manage daily operations by creating a centralized data depository of activities that can be distributed and accessed uniformly across the organization.
This streamlining of enterprise data, regarding company divisions like accounting, human resources, project management, and manufacturing, that is utilized by employees to make informed actions has several key benefits.
First, the risk of making uninformed decisions based on inaccurate data reduces. Information gathering from multiple sources ensures that data is correct and up-to-date. Confidence in data integrity increases. Secondly, ERP systems enhance operational efficiency by activating collaboration, improving data visibility, and eliminating data duplication. Having a platform where business data is organized and accumulated helps to facilitate data flow between departments, and thus allows issues to be efficiently addressed, capital resources to be effectively spent, and conclusively for bottom-line savings.
Today's industry trends in ERP systems involve cloud computing. Too often, small to medium business cannot afford the cost of implementing ERP systems because installing on-site hardware and software is expensive and require custom coding, hiring additional IT staff, training, and consulting. Yet the benefits of incorporating ERP systems are universal for all businesses. There in market demand lies the rise of cloud ERP systems. Clouding means that information is no longer located onsite at the company's headquarters but instead on a network of remote servers. This way, systems are more quickly implemented, companies don't have to support costly infrastructure and information can be updated in real-time. These benefits present an affordable alternative for small businesses that want to have an ERP system to support their operations. Other popular additional features in ERP systems are currently social tools, mobile-friendly interface, and IoT(Internet of Things) functions.
Because costs to install ERP systems are decreasing, its application is also diversifying. Software solutions companies like Syspro Inc is planning to provide ERP software to Charter Medical, a global manufacturer of products for regenerative medicine, blood transfusion, and bio processing industry, so that their organizational information is streamlined, reported in real-time and easily accessible. Besides from medical industries, another example of ERP systems implementation involves the mining industry. It's been reported that Pronto Solutions Alliance (PSA), a Canadian firm, has developed an ERP software system that helps mining companies lower operation time and costs by generating full business intelligence reports. These reports will work to lower the barrier of entry for early-stage mining companies, who are cash-strapped but still seek to achieve corporate efficiency.
Overall, ERP systems are effective software solutions that bring operational efficiency to your business, especially if your business deals frequently with massive circulation of data.