Beginner’s Guide To ERP Software

ERP software is popular amongst businesses. Business owners and management find relief in the fact that their business processes are maintained and compiled centrally through one comprehensive software.

Here, we aim to help you understand the definition of ERP Software and how it is leveraged to survive and grow in the changing business needs.

What Is An ERP System?

ERP system is a set of software programs that helps to manage an organization’s information and operations. Businesses use ERP systems to promote inter-departmental interactions, optimize business processes, and offer reliable access to all business data and functions.

Key offerings of ERP software include supply chain management, delivery planning, inventory management, sales, accounting, customer relationship management, shipping, timesheets, and more.

ERP software is known to improve transparency in business operations and motivate effective decision-making.

There are many benefits to implementing ERP Software for businesses.

Check out the article Top 5 Benefits of Implementing an ERP

Let us understand Various Types of ERP Systems

On-Premise ERP

Here, an ERP system is installed and run on in-house servers at locations under the control of the business. On-premise ERP brings security as it runs on in-house IT infrastructure that is connected to your systems, people, and processes.

On-premise ERPs are easy to customize and can change as per the specific business needs. If you are a business that needs security and freedom to supervise the system data, on-premise ERP is for you.

Cloud-Based ERP

Cloud-based ERP solutions are quickly growing in popularity. A cloud-based ERP solution is software hosted on the internet and accessed through a web browser, such as Google Chrome, Firefox, or Safari. The concerned vendor hosts cloud ERP software and offers access to the business. Here, the business can save the probable upfront licensing fees.

Cloud-based ERP solutions offer improved data security and disaster recovery capabilities, faster deployment time, lower system maintenance costs, and increased flexibility for business growth.

Understand more about on-premise and Cloud ERP in our Article

Cloud Vs On-Premise ERP Systems

Hybrid ERP

A hybrid ERP combines both cloud ERP and on-premise ERP functions and features.

Hybrid ERP is an integration of two or more ERP systems. It is a misconception that a hybrid ERP system is just a combination of two or more legacy systems. A hybrid ERP system can be integrated with cloud-based applications and other business software.

A hybrid ERP system can be implemented in many different ways, but the most common way to implement it would be to connect the on-premise data center with a cloud-based data center.

Here, ERP capabilities are preserved in an on-premises server, and ERP apps are deployed on the cloud.

How To Use ERP Software?

Review Your Business Processes

It starts with reviewing your business operations as it will help you understand the areas where you seek improvement (and how). This way,  you can measure growth in those areas post-ERP launch and check the ROI.

Invest In Training

A smart business never underestimates the value of training the employees and the end-users of your ERP solution. Trained employees have the capacity to yield the most out of any software, and they can quickly adapt to changes. Additionally, a deep understanding of ERP software helps in making informed business decisions.

Focus On Data Quality

ERP software helps you find and manage the answers to different questions related to the data flow, such as the why, when, where, and how. Your business data has to be accurate, rich, and accessible. Decide the process of data entry, including how to handle document versioning and naming conventions. Ensure every employee and team has access to the data and they follow the best practices. Build a unified data practice within the organization.

You can perform data audits and periodic spot checks on data standards. This way, you can clean the incorrect data and save numerous hours.

Customize Your ERP Platform

Most of the ERP software is customizable. They are built to suit businesses across industries. Building out-of-the-box software that suits your specific goals and values is an effective way of making sure that you benefit the most from your ERP.

An ERP Software can be efficiently utilized by customizing it as per your business requirements. Some ERP software will be ready-made for specific industries and some will be very flexible and can be customized as per your business requirements.

It is advised to choose ERP that is industry-specific as it will be having features and functionalities matching the particular industry.

Future-Proof Your ERP System

ERP systems are continuously evolving, just like any technology in today’s world. The ERP software you deploy today might look different in the coming years. Hence, it is better that you ask your vendor what their future roadmap for ERP looks like. Are they investing in research and development? What additional features and updates they will add to the software? And more.

Remember, a credible ERP system will never be a monolith or static. It will always adapt and update with the changes in business technology.

Leverage Mobile Apps

A modern-day ERP solution typically comes with an intelligent device app for Android and/or iOS. Using ERP mobile applications can bring many benefits to your users. Mobile apps offer better accessibility to your ERP systems.

Your employees and users can easily access important data remotely using an ERP mobile app. Irrespective of the location, your staff can access and use updated data in real-time and make decisions accordingly as per their job roles and responsibilities.

Conclusion

Businesses across the industries use ERP software, but not all of them can leverage its full potential of ERP software. Knowing the features and capabilities of the chosen ERP solution helps businesses get the most out of this technology. ERP is a crucial tool of success for any business as it helps it increase efficiency, boost productivity, reduce errors, and eventually enhance profitability.

While understanding how your ERP works and leveraging it the most in your favor, it is also important how your employees and users handle the software or understand its value. The right ERP system offers you great ROI in the long run.