ERP Systems

Enterprise Resource Planning Systems provide many benefits to a business and customer

Enterprise resource planning systems have been gaining popularity since the early 1990’s. Since then they have been helping business’s become more successful in their organizational strategies. What exactly does ERP do to help a business succeed?  ERP usually uses software applications to help information become more centralized throughout each department of a business. The ERP software is often used to unify the key functional areas of a business including: finance/accounting, Human Resources, Supply Chain Management, Project Management, Manufacturing, Customer Relation Management, Data Services, and access control within a business. With an ERP system all of these departments can be consolidated via the software application. Say goodbye to memorization of inventory lists or the paper it was written on. The information is logged into the ERP software for all of the different departments of the company have access to.  Components of a typical ERP system include: transactional database management, portal/dashboard,  business intelligence system, customizable reporting , external access via technology such as web services, search document management, and Messaging/chat/wiki Workflow management. Currently, The largest vendors of ERP system software: SAP, Oracle applications, The Sage group, Microsoft Dynamics, and SSA Global Technologies.

ERP systems have many benefits to both the business and the customer. The program efficiently organizes company information on a timely basis. Customers do not have to go through several channels i.e. warehouse dept, to get the information they need. ERP systems save time and keep expenses down for the business. Data is better managed since it is one central software platform. It is readily available for different departments to have access to.  An example of a beneficial accounting ERP system that is used by many businesses is QuickBooks by Microsoft.  QuickBooks accounting software helps many businesses manage their accounting needs without formal training.

However there are a few potential drawbacks of ERP systems. Employees must be trained on the new software programs or new organizational methods. This may take a longer amount of time than expected and certain software programs are not always user friendly. The costs related to some ERP systems may also not be practical for smaller businesses on a tighter budget. There is also a possibility that the software may not be customizable to the business and may require additional software to make fully functional. However most would agree that ERP systems benefits outweigh these costs.

ERP systems will be a continuing trend in modern business management. It continues to improve the efficiency of integration and the reduction of errors. It is important to consider ERP systems as a benefit, but it may not be the right fit for some business organizations. Careful consideration and research can help to decided of ERP systems are right for your business.

Written by :

kristine H