Enterprise resource planning can be defined as software that many organizations use to successfully manage their day-to-day activities such as classroom management, performance reports, accounting, risk management, and engagement. A comprehensive ERP system also includes enterprise performance management, a software that helps plan, budget, predict as well as report on an organization's results.
Enterprise resource planning combines together an array of business processes and enables the flow of data between them. An ERP collects an organization's shared transactional data from multiple sources, thereby eliminating data duplication and providing data integrity and security with a single source.
Nowadays, ERP systems are very critical for easily managing thousands of businesses of all sizes and in all kinds of industries. To these companies, ERP is an indispensable tool.
Why is ERP important?
Enterprise resource planning or ERP plays an essential part in the modern business world. As enterprise data and processes are combined into ERP systems, all businesses can easily align separate departments and streamline the workflow, resulting in significant savings. Some of the examples of business benefits include:
- Improved insights from real-time information generated by the reports
- Substantially low operational costs through streamlined business processes and best practices
- Enhanced and better collaboration from users sharing data in different contracts, requisitions, and purchase orders
- Improved efficiency through a unified user experience across many business functions and well-defined business processes
- Consistent and uniform infrastructure from the back office to the front office, with all business activities having the same look and feel
- Higher user-adoption rates from a unified user experience and design
- Lower risk through improved data integrity and financial controls
- Reduced management and operational costs through uniform and integrated systems
Three warning signs that you need ERP
If you're struggling with your legacy system, you probably already know that implementation is in your future, but here are the signs that you definitely need a new ERP system today:
The basics aren't letting you grow
Perhaps you've been doing okay with basics, but if your current software is putting limits on your market expansion and your ability to grow on a global scale is being compromised, it may be time to switch for an advanced ERP system.
You're dealing with old systems
As technology changes, you're noticing that your disparate systems don't quite work well together. You may begin to notice that your new accounting software isn't compatible with your old HR system, and you're completely tired of wasting time and resources trying to combine a solution together.
You are unable to meet expectations
If your staff and students are mobile and your current system isn't accommodating them, it's time to invest in one that meets their needs. If you feel like you don't need to invest in meeting your customer's expectations, and you're not willing to give your employees the tools they need to succeed, you'll easily lose them to a competing business.
Why do we need to move to an ERP solution?
For organizations, moving away from traditional on-premise systems and switching entirely to the cloud all at once isn't possible, or at the very least, it's not something they're quite comfortable doing. Meanwhile, staying with the old system and blatantly ignoring all the advantages of enterprise resource planning as a cloud solution is now no longer an ideal path, either. Given below are some reasons why cloud applications should replace or augment your on-premise system:
1. Easily adopt new and evolving SaaS technologies
The Next-generation technologies, like artificial intelligence (AI), help cloud-based systems quickly improve their capabilities with no need for periodic updates, unlike your old system. Hence, with no additional or new input from the end-user, Enterprise resource planning systems continuously become significantly easier to handle and use.
2. Make new technologies accessible
Finding cloud applications that complement your legacy ERP software modules lets you quickly take advantage of rapidly advancing new technologies and thereby improving user paradigms. These also provide complimentary systems that deliver business capabilities and value without a fundamental change in your operations.
3. Less third-party dependency
Reporting and analytics for legacy systems usually require constant involvement from a third-party vendor to generate operational business intelligence. However, using cloud applications from ERP vendors usually produces the same or better intelligence without the need for an additional vendor.
4. Improve your financial systems
Cloud-based technology was initiated in the last decade and developed, as a core principle, with a completely different kind of mindset and understanding of not only what was possible but what was needed to be successful for Enterprise resource planning platforms.
5. More defined robust security resources
Cloud solution service providers consist of full-time teams that are extremely dedicated to proactively monitoring and staying updated with cloud security issues and threats, 24 hours a day.