ERP is an acronym that stands for enterprise resource planning, a category of software that deals with all of the core processes needed to run a company. While there is no single software solution for every business, ERP is highly effective at bringing business processes together to advance productivity, improve collaboration and help company leaders make data-driven decisions.
ERP systems rely on a central database. Authorized users have access to a dashboard that contains real-time information across units like personnel, sales and supply chain management. The software also includes applications that help automate business functions like sales quoting, production and accounting.
While both ERP and customer relationship management (CRM) systems offer countless benefits to businesses, each has its unique functions. ERP is commonly referred to as the “back office,” while CRM is the “front office.” The main difference between the two is that ERP is primarily used for financial data and CRM is used for customer data.
Local or ‘on premise’ deployment is a traditional option in which ERP software is installed and run on dedicated servers in-house. The business both owns and services the software licenses and hardware infrastructure.
ERP software is also available on both the public or private cloud. With public cloud, ERP solutions adopt a web-hosting model where data and applications reside in a remote server and can be accessed via the internet or a non-browser application. A private cloud solution is a self-service, virtualized model of the public cloud.
Hybrid deployment combines both local and cloud deployment to support a company’s unique needs. The most common types of hybrid ERP arrangements include two-tier ERP and the support of specific business functions. A hybrid deployment offers several key advantages, including reduced costs, less complexity and greater responsiveness to business needs.
Organizations that implement or upgrade to an ERP system can enjoy a wide range of benefits, including:
Repetitive or manual tasks can be time-consuming and can damage employee morale. ERP systems can improve business processes by automating manual or routine tasks. The result is smarter workflows and improved efficiency in the workplace.
ERP systems give businesses access to a wide range of reporting tools that make planning and decision-making fast and simple. Combined with real-time information from a single integrated database, companies can achieve enhanced business reporting, cost savings and better customer service.
This means that employees across an organization can gain access to the same data, whether working in the office or from home on a tablet or smartphone. Management can utilize this solution to supervise operations from any location and device.
Today, enterprise resource planning solutions are increasingly being used by both small and large organizations across many industries. These practical software options can help manage many core processes with just one system. If you’re thinking about an ERP system and want to learn more about how they can help scale a business, start a conversation with Hartman Executive Advisors to discuss your unique situation today.