With the use of Enterprise Resource Planning, businesses are able to streamline their organizational structure by using centralized applications that automate and manage human resources, accounting, and even inventory. An ERP system is an evolution from Manufacturing Resource Planning which focused mainly on software for the manufacturing side of the business.
ERP systems stand out in their ability to integrate various business processes and foster seamless data flow among them. This reduces the chances of data duplication and increases the quality of data within the organization. Increased data within the organization translates to increased profitability, efficiency, and even better time management.
As per GMI Research, the
Cloud ERP Market size is estimated to reach USD 135.6 billion in 2030
What are The Types?
There are several types of ERP which serve various purposes.
Though lacking the capabilities for easy configurability and customization, this type of ERP is considered quite intuitive and simple for installation. These types of systems are ready to deploy and use for key business activities and functions. These ERPs are quite rigid. However, their low structural add-on capabilities are a boon for small-scale businesses. A few examples of this type of ERP include Monday.com and Quickbook.
This system is fundamentally a framework. A company provides a defined structure to support the building of a specialized software application. These types of ERPs are highly customized and require extensive hours of consulting and development due to being built from scratch.
This type is a hybrid of the first and the second system. It can be installed and used “out of the box,” or quite readily, but also provides a great deal of extensibility and can be tailored to very specific needs. Due to the highly competitive prices of these ERPs, they are particularly useful for businesses in the SME sector.
These types of ERPs include NetSuite, Monday.com, SAP, and several others.
The Benefits
These systems are easy to use and save time in operations, which is the reason for their increasing popularity.
- Cost-effectiveness While this system may seem expensive at first, used alone as opposed to several different ones, it will financially benefit the company, in the long run. An ERP system reduces maintenance and licensing costs as a result of a company’s infrastructure being centralized. This consolidation also unifies the support teams and systems, dedicated staff, and the siloed systems. Employees also spend less training time on different systems by learning one.
- Improve employee satisfaction and output This strategy positively contributes to staff output by reducing the time and effort needed to complete certain tasks. This system fosters Employee Engagement as Apps are unified. Collaboration and system focus reduces the use of several to one system, thereby streamlining processes. In addition, the system’s proper implementation also identifies the need for monotonous manual tasks. This allows employees to focus on revenue-generating and more critical work. Eased and streamlined onboarding is also a benefit.
- Improve organizational visibility.
Moreover, the software solution offers visibility and accessibility to all important parts of the business. Visibility and accessibility across many departments allow for continuous monitoring and reporting of employee activities. For example, last month’s sales analysis, sales forecasting, customer relationship management, and other activities can all be performed using a single platform. This type of integration can improve inter-team coordination and improve the efficiency of workflows by eliminating silos.
- Run a more effective business.
Lastly, is a matter of fact, centralization of all data in a single base can improve the operational effectiveness of the entire organization. The effectiveness of operational data regarding the market is much more improved if a cloud ERP is implemented. Furthermore, data centralization offers more efficient and faster retrieval of critical information, thus information retrieval is saved.
