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What Is ERP and Do Businesses Need It?

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The day-to-day management of business activities is a process that often needs careful management and streamlining in order to ensure it is running at peak performance.

That is why many companies now invest in enterprise resource planning (ERP) development.
This is a type of software that is used to take control of the day-to-day management of activities such as accounting, compliance, project management, and supply chain operations. Small businesses may use ERP in addition to other specific software such as inventory software to manage supplies.

Is it a system that businesses should invest in, if they haven’t already?

What are ERP systems?

ERP systems usefully tie together many different business processes and make sure that data can flow between them.

They eliminate duplicate data, and make sure that there is one single definitive source of data that all employees will be able to access and work from.

They’re a must have for businesses of any size, across a very wide range of industries. For many companies, a well-maintained ERP system from industry experts is indispensable.

The fundamentals of ERP for business

They are organised around one schema, which has just one unique database. This means that data for the whole organization is based on common, recognized definitions, and user experiences.

These ideals are then married up with the different workflows with the help of an enterprise project management software across a multitude of different business departments (for instance, accounting, marketing, HR) and they connect the people in those departments who use them. Those looking for dedicated business and accounting software to help them with matters of compliance and meet deadlines may want to look into something like EZLease to see if it improves their workflow.

It’s therefore seen as the process that integrates everyone in a company, and makes sure that they’re all working together as effectively as possible.

Key principles of ERP

The main principle of ERP is that centrally collected data is kept together and distributed widely.

This means that the need for multiple databases is negated, along with masses of unwieldy spreadsheets. A properly managed ERP system brings calm from chaos, and means that everyone in a company, from the CEO downwards, can use common processes to access data and use it for whatever their role requires.

Secure, centrally stored data is always up to date, complete, and ultimately, correct. This means that data integrity is assured and reports and statements that are put together will be less likely to contain errors or serious mistakes. ERP is especially important in financial management. This is why many businesses hire CPM consultancies like Holland Parker that provide OneStream software implementation solutions. OneStream Software is used to simplify financial consolidation, reporting, budgeting, planning, and operational analytics.

The value of ERP for businesses of any size

ERP has an immense value in the world of business and its impact will only grow and develop.

Businesses will be able to bring together lots of departments that were once separate, improve their workflows, and make significant savings. Here are just a few of the specific benefits to be had from ERP systems:

  • Better business insight gained from accurate reporting.
  • Smaller operational costs due to better streamlining of processes and practices.
  • Improved collaboration between users when they share data.
  • Better efficiency across a wide range of business functions and processes.
  • All employees use the same infrastructure and everyone across the business will use software that looks the same, giving familiarity and reassurance.
  • Less risk to the business because of better data and tighter financial controls.
  • Lower overall business costs that can be passed on to the consumer and the employees.
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