ERP is an acronym for Enterprise Resource Planning. It is any system that helps you integrate different aspects of your business for better management of processes and more effective data compilation. ERP allows you to connect the other elements of your business, gather data and use that data to provide accurate information without the stress of running across multiple departments.
Statistics show that over 90% of businesses that use ERP systems see visible improvements in one or more aspects, 48% claim to see progress all around, and only about 5% do not see any improvements. The most critical question you need to ask to be part of that 48% is “How do I use ERP software to improve my business?” and the answer is right here.
3 Types of ERP Systems
Before delving into how we can use ERP systems for business growth, let us first discuss the types of ERP systems. There are three types:
An on-premise system is an ERP system where the hardware needed to ensure that your ERP program is functional must be present in the exact location of the system. Think of it like a Sauna if you don’t have a Thermostat to heat the Sauna. Like the Sauna that needs a thermostat, on-premise ERP systems require servers to be present on-site to function.
Cloud systems are a lot different from their on-premise counterparts and they are much cheaper too. Cloud ERP utilizes a wireless connection to function. Cloud systems access the internet to perform their ERP functions. The only thing organizations need to worry about when considering these systems is a stable Internet connection.
Remember that Sauna example we used earlier? Now imagine that the same room has a thermostat, but this thermostat runs with software that requires an internet connection. This is what a hybrid system is. It is a type of ERP system that combines both cloud and on-premise systems.
How to Use ERP Software to Improve Business Functions
Now that we’ve got the hang of what ERP systems represent, let us now consider how they can be used in a business setting.
ERP software is an important investment for any company. This is not just because of the improvements that it brings, but also because of the potential profits that the company stands to gain from investing in a high-quality ERP system.
1. Examine Your Business Procedures
For any business just getting started with ERP, it is vital to have an understanding of all the processes you run in your industry. After understanding the procedures generally, you’ll need to review each individual activity to determine which ones require improvements and how much progress they require. Whatever the results of this examination might be, they will help you determine the type of ERP system your organization will need.
2. Employee Training Exercises
Before purchasing any ERP software, you need to first sensitize your staff so that they can understand how to properly use the software. When there is no experienced personnel on the ground, software becomes redundant and useless. Even AI needs to be activated before it can run! However, asides from that, it is also essential to train staff to be able to do their jobs more efficiently so that they can be better equipped to optimize and integrate the ERP software without error.
3. Audit Your Data
ERP systems are great for data gathering, processing, and distribution, but the system needs to know what data to work with. You must audit your data to remove any aspects that might be redundant. After all, you wouldn’t want to sort through data that your software has already sorted.
Determine the essential pieces of data and how you want them to be presented. Formats might seem insignificant, but it is easier to process well-organized data in the long run.
Get Customized ERP System
Get your customized Enterprise Resource Planning system. Having knowledge of what requires fixing, improvement, and removal is what helps you determine the type of system you are going to purchase and what that system will do. It is crucial to get a system that is capable of doing everything you need and more. After all, it’s better to have an umbrella on standby than to walk under the rain to purchase one in bad weather.
IT is important for your ERP system to be flexible so you can easily access it on any device. Odoo is an ERP software that allows you to integrate on multiple devices regardless of their platform and an example of ERP software that you can use on the go. You can try out integrating your ERP on various devices or different operating systems.
So, once you have all the logistics figured out, you can set up your ERP system and become part of the special 48%!