Enterprise resource planning (ERP) manages the components of day-to-day business activities, bringing islands of information together to form a consolidated database that improves the efficiency of operations, and reduces overall expenditure.
What is enterprise resource planning?
Enterprise resource planning (ERP) is a software technology that actively monitors core business operations through a centralized database. ERP gives an organization the ability to analyze and monitor current data pulled from numerous departments like sales, human resources and finance in real-time. It removes a disconnect between teams caused by processes like creating finance spreadsheets and handling customer transactions.
An end-to-end solution, ERP software acts as a touchpoint for daily operations from different departments to meet and sync. Additionally, monitoring data improves efficiency, profitability and customer relations. Here we consider three core ERP functions.
1. Consolidated data for a single source of centralized information
At its core, an enterprise resource planning system reduces the duplication of tasks and eliminates information silos that adversely affect productivity. ERP functionality allows datasets from various departments to be streamlined in a centralized system that delivers real-time results and provides operational transparency. Running analytics and reports with advanced tools is another function that gives teams instant access to reports like sales, product and finance.
An integrated database enhances efficiency. Centralized business processes improve accuracy and reduce costs. With an ERP, data is streamlined for enhanced monitoring of information as teams are given updates via notifications that are programmed to be automatically sent. ERP technology also helps organizations understand its data lineage through cross-departmental sharing and tracking.
2. Evolve to improve customer relationship management
An important part of enterprise resource planning is customer relationship management. ERP systems deliver a 360-degree view of a customer’s journey through the centralization of key information like customer service interactions and sales. This type of front-end information can be pipelined into an ERP system capable of maintaining customer and operational information. A fuller understanding of a client’s purchasing needs also helps to forecast sales. ERP software centralizes data and tracks each part of a buyer’s journey.
An interdepartmental understanding of customer relationships removes the need for manual syncing of databases and reduces the risk of human error. Another added benefit is an agility increase. Remove the slow process of inputting the same data across various departments; ERP functionality allows you to integrate business processes to improve operational understandings.
3. Reports provide in-depth analysis
The singularity of information means enterprise resource planning is an optimal system to handle an organization’s reports. Save countless hours of unnecessary staff labor with ERP software that has groundbreaking analytics capable of producing multiple reports from a centralized database.
ERP dashboards pull qualitative and quantitative focused data from multiple departments. Key performance indicators (KPIs) are accessible and compare performance against targets over the long-term to give a clearer forecast. Plan, budget and forecast with reports that offer detailed breakdowns of transactions and provide quarterly comparisons.
Countless hours of needless labor can be saved with a centralized source of data. ERP software effectively brings together departments and the power it has to connect people is undeniable. Unify teams and simplify reports with the utilization of an ERP system.