An Enterprise Resource Planning (ERP) refers to software or system used by individuals or businesses in managing their day-to-day activities, such as project management, accounting, or manufacturing. It ties together and defines numerous business processes enabling data and information to flow between them. In addition, it provides data integrity and eliminates duplication.
ERP systems have become very popular, and many individuals and businesses feel comfortable using them. Business owners have embraced maintaining all the business processes in a single comprehensive package. The ERP market is expected to grow at a CAGR of 9.2 percent and hit a market value of more than 93.34 billion U.S. dollars by 2028. The rising requirement for affordable and effective solutions among organizations and enterprises positively impacts the ERP market. In addition, businesses are embracing cloud-based systems that accommodate the remote workforce.
An ERP system streamlines processes and information throughout the organization by integrating different features into a single system. These systems allow managers to control and supervise small or medium-sized enterprises across all industries.
An ERP system is an effective and powerful business process management tool. It provides visibility, intelligence, analytics, and efficiency across the different aspects of a business. In addition, this system can automate your business processes and facilitate real-time information flow.
Types of ERP System
There are different types of ERPs, and you can combine the various features to get a system that better meets your needs. The common types of ERP systems are cloud ERP, on-premise ERP, and hybrid ERP.
Cloud-Based ERP Systems
A cloud-based ERP software is hosted on a cloud computing platform rather than within an enterprise’s own data center or on-premises. It is a web-based solution, commonly referred to as Software as a Service (SaaS), that allows users to access their data on any device with an internet connection. The business using SaaS usually purchases the service through a subscription. The software provider offers support, training, updates, and flexible customizations.
On-Premise ERP Systems
An on-premise ERP system is installed and can be accessed on computers on the premises of the individual or business using the software. It is implemented onsite and physically maintained within an organization’s office space. It is hosted on the company’s own servers and computers for full ownership, control, and support.
Hybrid ERP Systems
A hybrid ERP system is also referred to as a two-tier ERP. Essentially, it is a mix of on-premises and cloud-based ERP solutions, with some components hosted in the cloud and others on-premises.
How to Use an ERP System
Purchasing an ERP system is a significant investment for any organization, so you must get the best from it. It will boost efficiency, productivity, and profitability and cut errors and costs. So how do you maximize your ERP system?
Analyze Your Business Processes
It is essential to review your business operations before selecting an ERP system. This will help you identify what business processes need improvement and monitor the post-ERP launch. You will also identify what processes need the most attention and choose the best ERP to meet your business needs.
For example, you could need a system that can offer a robust accounting solution or one that will help you manage your human resources. Furthermore, you could need one that handles both or more processes.
Invest in Training
Training your employees in the ERP solution is vital. Trained users will help you get the best out of the ERP and quickly adapt to changes and updates. Deeply understanding the ERP system will also assist employees in making decisions more quickly.
Most organizations assume that the initial training is enough. However, ERP solutions keep growing and advancing, and it is only right that users advance with them. Continuous training ensures that users level up as the ERP becomes more advanced.
Focus on Data Quality
An ERP system should help you manage all the business processes and data flow. Data is essential in business management, and it should be rich, accessible, and accurate. The role of data is to facilitate managers to make the right decisions. Take time to design your data entry standards, processing, storing, safeguarding, and reporting. All employees should have access to the data required to perform their duties effectively.
Consider Integrating and Customizing Your ERP System
An ERP system is a jack of all trades when handling your business processes. Therefore, the ERP should fit your business needs and work within the existing policies, procedures, and processes.
Security should be a top priority when integrating and customizing your ERP software. The system should not compromise our data integrity. You should download the best VPN with dedicated IP that only your employees can access. A dedicated IP is designed for individuals and businesses that want the benefits of a VPN but with fewer interruptions and a more consistent browsing experience. A dedicated IP address will safeguard your data.
ERP systems are becoming critical components of every business today. However, they offer solutions to a wide variety of business needs. Therefore, you should thoroughly assess your business needs before selecting your ERP system.