What Is ERP Software And Why Is It Important To Your Business?

If you want your business to have every chance of success and continue to grow it makes good sense to seek out ways you can streamline and automate your processes so that you are as efficient as possible.

A great way of achieving this aim would be to take full advantage of Enterprise Resource Planning (ERP).

Businesswoman using ERP software

ERP systems are primarily a business management software intended to provide you with a clear insight into your core business processes and give you the sort of database management reporting and resource tracking tools that are needed to enable business growth without the financial burden of added IT or staff costs that would be necessary without ERP for guidance.

Here is a look at why ERP software is so important to your business and some pointers on what sort functions and features you might want to have, and if you want to compare the various ERP systems and their respective merits you may also want to delve into a resource such as Infor vs SAP once you have the lowdown on why you need ERP in the first place.

Respond to change

You will already be very aware that nothing in the world of commerce stands still for too long and if your business is not evolving to adapt to all the changes in market challenges, consumer spending patterns, new product launches, and any other moving parts that are subject to change at short notice, you could quickly be left behind.

What ERP software helps you to do is make your business more agile and gives you the analytical tools to be able to respond to these changes in the best way.

A way to greatly reduce inefficiencies

Poor productivity levels and inefficiency can soon become a millstone around your neck that burden’s your prospects of progress as it inhibits your ability to make a profit when you are not getting from point A to point B in the best way possible.

If you are relying on outdated software and spreadsheets that don’t provide all the data you need in a concise manner these are just two examples of how this can impact on your strategic thinking abilities.

Using an ERP creates the framework you need to streamline so many different aspects of your business by presenting all the data you need in one place, giving you the sort of overview that allows you to easily spot where improvements in productivity and efficiency can be made.

Save money on operational costs

Take control of risk and hardware costs

Another point to consider about ERP software is that it should provide you with the ability to enjoy improved data security and keep a lid on your hardware costs at the same time.

The way to do this is by moving your ERP to the cloud, which allows you the opportunity to upgrade more easily when you need to and provides you with the security features associated with cloud-based hosting.

Moving your ERP to the cloud gives the option to scale and upgrade more easily and cost-effectively than if you were having to upgrade your hardware and software on site.

Save on staffing costs

As your business grows it will need more staff to cope with greater volumes of work but there is always the danger that you can become bloated and burdened with additional staffing costs that cut into your bottom line too deeply.

An ERP system is designed to help create a level of efficiency through automation that allows you to keep staffing costs under control.

If you have a system that is doing a lot of the analytical and data flow work for you that should mean you don’t need an extra member of staff and your IT costs should be lower overall.

If you can use ERP to identify ways to save costs and keep overheads under control that should allow your business to strip fitter and run at optimum capacity.


A good way of viewing what ERP software can do for your business is to view the system as the brain of your IT system.

It will be providing the same sort of control system and functionality that we use our own gray matter for and this synchronicity allows all the parts of your business to communicate with each in a coordinated way.

Using ERP system

What can ERP software do for you?

You have already had an overview of the distinct advantages you can enjoy when you utilize ERP software in your business but you might be wondering which key areas of your business can benefit from improved functionality.

Financial reporting is one area, with the software giving your access to the numbers that matter and allowing you to get a clear overview of what is going on with your finances and make more accurate projections and predictions when you have reliable data to work with.

You can also use ERP software to gain better control over your inventory and purchasing management, using various different functions to see what you have and what you need to keep the business running as efficiently as possible.

The general concept of ERP software is to provide you with the sort of professional support and systems that allow your business to compete and adapt to change more easily when you need to.

You will need to compare the various software systems available and decide which features are particularly relevant to you and your business so that you can choose a provider that closely matches those needs.

What you can achieve when you invest in ERP for your business is the ability to function with greater efficiency by helping eliminate waste and inefficiency, giving you better prospects of driving your business forward with these tactical advantages working in your favor.

It can create some fundamental changes in your business when you first implement an ERP software system but the benefits of having this level of streamlined functionality soon become crystal clear and could deliver a noticeable improvement to your bottom line.