How to Improve Business Processes Using ERP?

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This article turns to the Enterprise Resource Planning (ERP) systems to highlight the benefits a business gets by its implementation.

What Is ERP and How to Improve Business Processes by Using ERP?

Enterprise resource planning or ERP is the strategy aimed at the integration of the numerous processes that are essential to running a business, i.e. human resources, financial and assets management, customized to enterprise’s needs. ERP focuses on a company’s resources balancing and optimization through specialized and integrated application software ensuring the general data and processes model for all areas of activity.

ERP system is a specific software package realizing an ERP strategy. It is a real-time product created for scalability from the one side and achieving maximum opportunities from the other.

What Are the Benefits the ERP Implementation Brings?

Above all, ERP is a great possibility to combine all business processes in one powerful and convenient system, thus, it has a bunch of benefits. Here are the most essential of them:

  • Data Accessibility: Every business unit may take advantage of a shared database that supports numerous functions. Once entered, data becomes available within the entire system and does not require any further review.
  • Data Consistency: A common database application helps avoid a stage of data reconciliation and harmonization. For instance, if a design department has adopted the draft, its data could be used by another department right away, without a necessity to harmonize it.
  • Control of Employees’ Work Performance: If one department enters a product-related data, another department gets this data and can operate it immediately. In this case, a discrepancy is almost impossible, as a common database excludes mismanagement, predicts and prevents risk. Moreover, by using an ERP system, a business runner can monitor all processes 24/7 to maximize business visibility and control.
  • Decreased Number of Human-Related Mistakes: A single system allows tracking products’ availability and payment information that is transmitted to the sales department directly from bank or ATM. Technical data of the project will be transmitted automatically as well, reducing to zero a possibility of mistake making. Moreover, instead of maintaining a separate database and reporting, employees get a chance to pull reports from one system.
  • Multiple Tools That Might Be Useful in the Future: Although ERP software of the past was inaccessible to medium and small-sized businesses due to cost, the next generation of ERP has broken this barrier. Today, almost all ERP systems are a powerful platform for integration of a great number of processes that help seize new business opportunities. Up-to-date ERP systems allow incorporation of more and more modules that help implement new solutions and involve new departments at minimum cost in the course of the company’s development.