3 Highly Important Enterprise Resource Planning Benefits
Posted by Casey Schmidt
Enterprise resource planning (ERP) is the management of important business components. Organizations bolster ERP with software that controls sub-divisions of a company. So what is ERP and how does it work within companies? Here’s a quick breakdown.
What Is Enterprise Resource Planning?
Enterprise resource planning is the active monitoring of core business operations. It provides a current analysis of data from numerous departments within a company. ERP helps companies gain valuable information insight into its different teams and departments.
An ERP system gathers and stores data in a single location, allowing members to access information cross-departmentally at any time. Similarly, ERP systems are designed to increase overall efficiency. Therefore, the more potential access to data, files and information, the more likely teams succeed in campaigns.
Here are three core functions of ERP to help align your company with powerful management ideas.
1. Enhanced Collaboration From Data Administration
Enterprise resource planning systems move data between crucial business processes. Every department of a business has its own sets of data. Therefore, it’s necessary to exchange data among them. ERP systems retrieve business data and ensure clarity and transparency. Furthermore, ERP controls data and keeps it uncluttered by keeping it in a single source. This gives members notifications and updates to projects.
Enterprise resource planning brings departments together and creates a singular-focused data process. Data from documents, sales and transactions is viewed in a single, sorted process. This helps teams stay on the same page. Finally, ERP essentially combines each department’s data and makes it work as one.
2. Evolved Customer Relationship Management
An important function of enterprise resource planning is customer relationship management. This is because ERP systems maintain customer information in a central location. This information storage helps team members instantly find specific data about a customer. An interdepartmental understanding of current customer relationships promotes efficiency of all customer relations areas.
There are many subsets of customer relationship management that enhance company efficiency with customer communications. For example, a digital asset management (DAM) system is a function of customer relationship management. It streamlines workflows to allow teams more chances to interact with potential customers. DAM also uses portals to connect teams to customers for recent public relations assets and product information.
3. Accessible Reporting With Central Data Sources
The singularity of information sources makes ERP an optimal system to handle an organization’s reporting. ERP generates vital resources and intelligence. This is because it’s a central source for data, which eliminates time-consuming updates from department to department. Not only are reports accessible for each department but the extent of the reports created are comprehensive. In-depth analysis, focused insight and groundbreaking analytics are standard with ERP. This is due to its creation of reports by pulling from each transaction within separate departments.
It’s clear that this type of system saves countless hours of unnecessary labor. The central source for data within an ERP effectively ties departments together and moves them forward as one.
The connectivity of an enterprise resource planning system is undeniable. Companies see fluid communication between departments as they further explore ERP software. Therefore, ensure your organization is unifying teams and simplifying reports by utilizing ERP systems.