Enterprise Resource Planning (ERP) is a software used to manage big data in an organizational context. Managers face unprecedented level of challenges in the globalized business environment. Addressing those challenges requires proper mechanisms of collecting, analyzing and using data to make effective decisions. The ERP software gives managers the means by which they can manage and use information to make quick and effective decisions.
What is an ERP Software?
Enterprise Resource Planning (ERP) Software is a software used in an organization to streamline business processes including the supply chain, human resource management, e-commerce, customer relationship management (CRM), and finance.
Finding the right ERP solution is critical to the success of ERP deployment in an organization. If the enterprise is able to implement an ERP system effectively, it can achieve significant benefits. Some of the benefits of ERP software are explained below.
Benefits of Using ERP Software to Manage Business Operations
1) Increased Productivity: ERP enables business managers to automate their business operations such as invoicing, marketing, and customer relationship management. Business process automation leads to increased productivity in the workplace because more work is done with little resources.
2) Reduced Costs: Automation of business operations using the ERP software also helps an organization to achieve operational efficiency and reduce operating costs. ERP software has the benefit of integrating several business functions, enabling the company to cut on administrative and operational costs. As a result of reduced costs, ERP software drives increased profitability in the organization.
3) Information Sharing: ERP software facilitates effective use of information by integrating information from all departments into one single source. This information can then be shared consistently across the organization. It also promotes accurate data that can be used in the company to make effective decisions in various business areas such as forecasting, customer service, and strategic planning.
4) Collaboration: An ERP software also benefits an organization by enhancing increased coordination and collaboration across departments.
5) Promotes Competitive Advantage: Another benefit of using ERP system is that it enhances competitive advantage. Deploying the right ERP effectively enables a firm to stay ahead of competitors in terms of costs, product quality, and customer services. ERP is used to drive real-time data management, decision making, and flexibility. These factors enable a firm to respond to customer needs and achieve customer satisfaction and loyalty.
6) Flexibility: ERP software allows a company to provide employees with multiple ways of doing work. It can be implemented in a way that can accommodate different needs and changes in the workplace. As the business expands and meets new challenges, an ERP system helps them to scale up and achieve growth.
7) Transparency and Accountability: ERP also has significant benefits in terms of reporting and planning. When implemented appropriately, ERP software provides a unified reporting system where managers can share useful information with external stakeholders. Using the ERP system, employees can be able to generate reports, identify problems, and offer timely solutions that can be accepted by all key stakeholders.
8) Data Security: Most ERP software carry security systems to protect a company’s data from theft or unauthorized access. To keep its information secure from third parties, a company should establish a reliable modern ERP solution. ERP software benefits the organization by merging data into a single secure repository and locks them away from unauthorized access.
9) Improved Customer Service: another key benefit of a modern ERP system is that it optimizes customer relationship management. It allows the organization to keep a large database of customers, which can then be analyzed and used to provide customized services to each customer. Customers’ information can also be retrieved from the ERP software and used to develop effective marketing communication messages and respond to customers’ requests appropriately.
10) Strategic Management Planning: Top managers in an organization can use an Enterprise Resource Planning system to make effective strategic planning decisions. One of the key benefits of ERP software to managers is that it enables them to access a wide range of information from one database, which can then be utilized to establish strategic actions.
11) Financial Management: ERP software provides financial benefits to an organization. The software can be used in an organization to track, store and manage financial data in one location. This enhances proper utilization of the firm’s financial resources.
