ERP is an industry acronym for Enterprise Resource Planning. Broadly speaking, it refers to automation and integration of a company’s core business to help them focus on effectiveness & simplified success. The term ‘ERP’ itself is not self-explanatory and refers to the business software that has been designed to record and manage your enterprise data.
ERP is business management software, a suite of integrated applications that a company can use to store and manage data from every stage of business. ERP provides an integrated real-time view of core business processes, using common database. ERP facilitates information flow between all business functions, and also manages connections to external stakeholders. The organizations consider an ERP system a vital tool because it integrates various organizational systems and facilitates error-free transactions.
ERP when properly implemented can re-engineer your core business processes to make them smoother and more streamlined. By instituting more efficient modes of operation, your company can experience a boost in productivity, faster communications, more clarified roles among your workforce, and a reduction in the use of physical resources.
Engages People & Processes
ERP can help your employees do their jobs more effectively. By optimizing, and even automating certain tasks, ERP can eliminate non-value-add activities. Streamlined responsibilities give employees more sense-of-purpose in their work. By creating direct routes to accomplishment, ERP can be instrumental in cutting back on wasted time and providing your workforce with a much-needed productivity boost. It’s important to remember, however, that changes in process must be bolstered by changes in behavior. The very exercise of automating the business processes becomes futile if some of the employees insist on sticking with conventional manual mode of operation.
Enhances Productivity & Performance
ERP can be a great help for streamlining communications. To start with, a properly integrated ERP breaks down the linguistic barriers that can form between departmental silos, providing a common language that can be used and understood by every worker in the organization. Those in positions where communications are part of the job description can work more confidently, easily avoiding ambiguities. Other tasks that require communication, such as scheduling and customer relations, can be at least partly automated, creating an easily-referenced flow of precise and timely information. Faster, more effective communication with employees, customers and suppliers can lead to improved rapport, increased service ratings, and a consequent growth in revenue.