Learn more about ERP Software
What is the Meaning of ERP Software?
The acronym ERP stands for Enterprise Resource Planning; ERP Software encompasses a number of systems and software programs that help with resource planning on an enterprise level.
What is ERP Software and How Does it Work?
Enterprise Resource Management (ERP) Software refers to applications that can streamline or automate accounting, production, sales, and other key business features. ERP systems work in an integrated software suite by consolidating and sorting business data in order to automate other business functions.
What is a Tier 2 ERP System?
A tier 2, also known as a two-tiered ERP system combines two systems to better fulfill the needs of larger organizations that may be situated across more than one location or subsidiary. This two-pronged approach to enterprise resource planning produces superior data management and consolidates data from across the entirety of the enterprise into a single source.
What are the Common Features of ERP Software?
Most ERP software systems use a variety of features ranging from human resource management to data analysis. Other common features include integration, automation, reporting, customer relationship management, accounting, and tracking and visibility.
What is the Central Feature of any ERP System?
ERP software is designed to increase visibility and efficacy for all sizes of businesses. The central feature of any ERP system is thus a synchronized database that is shared across different business units and used for multiple key functions.
What are the Applications of ERP?
Enterprise resource management software has many useful applications that can help to improve workflows and existing systems. Some common applications include program management, functional consulting, technical consulting, implementation, optimization, migration, upgrading, interface programming, and customizations.
What are the Benefits of ERP Software?
With so many functions and applications, ERP software can support all sorts of business processes in various departments through one centralized application. ERP software helps to supply cross-functional information reports; all of this consolidated business data provides the context necessary to make important and informed decisions.
The manufacturing industry in particular has been reaping the many benefits of ERP solutions however, the advantages of centralization and organization can be applied to companies from other industries. Human resources, finances, relationship management, and supply chain management are industries that may reap significant benefits from enterprise resource planning software.
Who Uses ERP Software?
ERP is used by a number of different business sectors but is most commonly used in manufacturing and supply chain. Companies working in this industry use ERP to keep track of the many moving parts of manufacturing, shipping, and distribution. Alternate industries that use ERP software include healthcare, nonprofits, construction, and hospitality. More industries than ever before are embracing ERP as more companies realize the benefits of using these systems.
What are Different Types of ERP?
ERP, although typically marketed as a single solution, can be broken down into four different types of enterprise resource planning. These categorizations help to understand the general landscape of the ERP market and specify different utilizations. The four categories are: Box ERPs, Industry Specific ERPs, Intermediate and Flexible ERPs, and Large Scale ERPs.
What are the Challenges with ERP Software?
While ERP can help solve many problems within a business, there are challenges that come with this type of software. It is important to be cognizant of the maintenance costs and work that comes with ERP. Integrated processes need to be planned and thought through prior to making changes, and some systems provide inadequate flexibility to make said changes. Also, key features need to be properly understood and put into place.
What are the Typical Challenges of ERP Integration?
ERP implementation can be complex and challenging, and some of the typical issues that arise during the process include:
- Properly securing and storing data.
- Managing costs to keep ERP implementation on-budget.
- Customizing ERP to your business needs.
- Migrating all business data into the ERP system.
- Ensuring all environments are compatible for ERP integration.
- Communicating effectively with customers and suppliers.
How Can ERP Challenges be Overcome?
ERP challenges can be overcome by creating and clearly defining ERP implementation goals with special attention paid to activities and processes such as:
- Creating standard processes and procedures
- Limiting the amount of manual data entry and work that needs to take place during an ERP integration
- Keeping cycle times short and costs in budget
- Ensuring efficiency is improved with each aspect of implementation
What are the Risks of ERP Implementation?
The risks of an ERP implementation can include:
- Failing to use a project manager to guide the implementation process from start to finish.
- Lacking the expertise needed to implement an ERP system
- Neglecting to properly test during the implementation
- Viewing ERP implementation as a sole responsibility of the IT team.
Which Companies Should Buy ERP Software?
ERP software is rooted in the manufacturing industry, and these systems have been used to support manufacturers and supply chains for decades. However, many companies across industries such as retail, finance, farming, healthcare, and others are beginning to leverage ERP systems more regularly as a strategic way to improve data integrity, reporting, and information transfers.
How to Buy an ERP?
When buying an ERP, follow these steps to ensure you choose and implement the best options for your business:
- Conduct a business review of company needs (internal and external)
- Consider company size, growth plans, and budget
- Identify the must-have ERP tools and features your business will benefit from most
- Research ERP vendors, plans, and pricing
- Make a list of top ERP vendor choices and set up demos
Do Small Businesses Need ERP?
Small businesses can use ERP software to build strong processes, consolidate and automate finance processes, and streamline communication between departments as well as customer or clients. Cloud ERP systems are much more affordable than traditional on-premise ERPs, which means that companies can make the investment in these tools much earlier than in the past.
What is ERP Lifecycle?
ERP implementation can typically take anywhere form 6 months to 1 year, depending on the size of a company and the complexity of migrating data and processes into a centralized ERP ERP.
What Should I Look for in a New ERP system?
Below are some of the most important things to look for in a new ERP system:
- Scalable, flexible modules and features to support growth
- Ease of use
- Mobile accessible system that can be accessed remotely (and securely)
- Reviews from current or past ERP users that are similar to your business
- Costs, efficiency, and savings (long and short-term)
What are the Top ERP Software Trends?
The biggest trend in ERP software is cloud deployment. As more companies shift to remote work and need tools to support mobile business and off-site employees and contractors, cloud-based ERP systems are becoming the more common option for mid-sized companies and enterprises alike.
Some other ERP software trends include:
- ERP flexibility and security
- AI & Predictive Analytics
- Mobile ERP
- Personalization and Customization