Do you get baffled when you search for ERP, ending up on Wikipedia or another random website that’s no help? Even ending up more confused than you began with 5 other acronyms for ERP. The fact that this is the case proves the point that ERP can be invaluable business tool.
We hear that ERP can change our business, but we don’t understand what it really is and how it works. The following is a brief outline of what everyone is talking about.
ERP is an abbreviation for Enterprise Resource Planning. So, in short think about all your business processes you need to run; Accounts, Audits, Design, IT, Human Resources, PR & Marketing. Even with this list, there are so many more subheadings you could add.
In its simplest form, ERP software incorporates all these various departments procedures and data into one system. Thus, streamline processes and information throughout the whole business.
How does it work, at its core it is a shared database with multiple functions, including all the business’ department elements. More than one department can access the same information for their exact requirements.
ERP software also extends to some amount of combining reporting and automation. In removing any separation for a department maintaining their individual spreadsheets, databases and records that only they understand. Then spending time on manually entering, uploading, merging and sending to share information with another colleague or department. This could be demonstrated by Finance Team being able to pull a report on what has been purchased that month, therefore being able to forecasts without any manual inputting. Alternatively, it could be Payroll’s ability to see if there has been new recruits or leavers. Another useful feature ERP has is the ability for easy access though portals and gateways to learn about the business and its performance.
Date: June 21, 2021