Understanding ERP
ERP stands for Enterprise Resource Planning but the simplest way to define is to think of all the core processes needed to run a business like finance, manufacturing, procurement, human resource, supply chain, and others. ERP at the most basic level is to efficiently manage all these processes in an integrated system. These integrated systems act as a central hub for end-to-end data and workflows providing access to the departments in the business.
Today’s ERP systems are anything but basic because of the latest technology like IoT (internet of things), Blockchain, Artificial Intelligence (AI), and Machine Learning for greater efficiency, intelligent automation, and instant insights across the business. Cloud ERP software connects all the internal operations with various offices across the globe, giving companies speed, agility, and collaboration in this competition today. ERP systems also function for small businesses, mid-sized, and enterprises including customizations for your industry.
Why Is ERP Important For Business?
The global ERP software market is predicted to reach $78.40 billion by 2026 which is valued at $54.77 billion in 2022, growing at a CAGR of 10.2% from 2019 to 2026.
Make Your Business More Agile
A good ERP system is scalable, flexible, and modular enough to adapt to the shifting dynamics of the market along with the changing customer needs. During the initial stage of the business, you can implement specific applications and then add on seamlessly integrated applications as your business grows.
Improved Security and Accessibility
Reduce the risk of data loss by migrating your ERP from hardware to the cloud. Host your ERP in a secure cloud and embrace the future of the information system. Take full advantage of your ERP facilities as it increases visibility and accessibility even further.
Save Unnecessary Costs
Make your business leaner and create efficiencies even if it grows by implementing an ERP system. An ERP eliminates the need for disparate systems across departments and geolocations, saving time, resources, and operational costs.
Increased Productivity and Business Growth
An ERP system can eliminate inefficiencies, wasted time, and resources, empowering your business to grow and flourish. If you cannot keep up because of your conventional systems, upgrading to a modern ERP system will boost your company’s growth and realize its true potential.
Common ERP Modules
Enterprise Resource Planning systems have a variety of different modules that supports specific business processes. It serves the employees of different departments with the insights necessary to do their jobs. Every module is linked to the ERP system which is the single source that delivers accurate information and can be shared across departments. Without ERP, companies tend to operate in siloes, where each department functions independently while being disconnected from each other. ERP is a sophisticated solution available for various modules like
Human Resource Management (HRM)
Customer Relationship Management
Business Intelligence
Supply Chain Management
Inventory Management System)
Financial Management
Types Of ERP Development
Modern ERP systems can be deployed in many ways- on-premise, in a public or private cloud, or various hybrid ways. Businesses choose one of the below-given ways to deploy ERP according to their business requirements.
Cloud ERP
Cloud ERP is the most popular deployment method that is hosted on the cloud and delivered over the Internet. Cloud ERP is well known because of lower upfront costs, easier integration, greater agility, and much more.
On-Premise ERP
This is the traditional model where the ERP system is installed in the data centre at the locations of your choice. Many businesses are upgrading their on-premise system to cloud deployments. This requires careful planning of ERP upgrades and careful evaluation of ERP deployment.
Hybrid ERP
Cloud ERP is the most popular deployment method that is hosted on the cloud and delivered over the Internet. Cloud ERP is well known because of lower upfront costs, easier integration, greater agility, and much more.
The Future Of Enterprise Resource Planning
Digital transformation is speeding at an unconventional rate, so it becomes mandatory for businesses to adopt technology in every part of the business. It isn’t surprising that companies demand more robust ERP systems these days to respond quickly to volatile markets and industry trends. Following are the major trends that have created a momentum we see today:
User Personalisation
The customers, suppliers, and staff all require the functionality of ERP to match their specific requirements to make them more productive. This platform will enable AI-driven search, personalized workflows, and private chats across devices that will allow users to get the experience they want.
Enhanced Cloud
Around 63% of the organizations are opting for cloud-based ERP software when compared to on-premise. Preference for cloud ERP will continue to intensify because of the reduced cost, greater security, anywhere access, and easy integration with other systems.
Vertical Integration
Through vertical integration, companies without painful integration issues or locked data can get specific functionalities. ERP provides greater flexibility as business processes are tailored to individual company’s needs.