In today’s cut-throat competitive world, running a business is a very complex task. To run your business very efficiently and effectively, you need the right technological tool that can smartly reduce the complexity by managing all operations of your company. Well, ERP (Enterprise Resource Planning) solution enables the path to reduce complexity and run your business hassle-free. Successful business houses from various industries have been using ERP Systems over decades to manage their company smoothly & swiftly.
In this blog, we’re going to understand how ERP systems can integrate all of the processes needed to run an organisation. Later on we’ll see various features & different types of ERP Systems.
Table of Content:
- What is ERP Software and how does it help?
- Various Features
- Different Types
What is an ERP (Enterprise Resource Planning) Software?
ERP software becomes necessary for businesses of all sizes and in all industries to manage their activities such as collecting, storing, tracking, managing as well as interpreting data across all departments of the organization. ERP solution can deploy over any industry that enables benefits to companies by tracking all activities and managing all resources.
Enterprise resource planning – ERP system is used to manage routine business activities such as accounting, project management, supply chain management, financial results and so on.
Many technologies exist around us for ERP systems such as ERPNext, Odoo, SAP, Microsoft Dynamics, Infor, Workday and so on. Among all, the ERPNext helps to deploy an ERP system without spending any penny as it’s an open-source ERP software. By having an ERPNext system, companies can quickly add various free additional apps and modules from ERPnext marketplaces as well to the implemented ERPnext as per the need.
Various Features of ERP Systems
The ERP software enables easy traceability of the company’s data across the organisation. ERP system centralises all types of resources and processes that can help to run a company smoothly. These ERP solutions are standardisation and synchronisation.
Some of the most important ERP system features are given below:
- Automation: This feature is useful to automate the repeating processes and tasks of business to minimise manual efforts. This can reduce errors as well as give more time to employees for more important tasks.
- Data analysis: This feature enables employees to gather useful information about the business. This information is useful to get actionable insights by manipulating the data.
- Reporting: This feature allows the admin to compile information. This compiled information helps a business to identify problems and make better decisions. This process enhances business performance.
- Financial Management: This feature in ERP System will assist you to plan, organise, and determine the budget as per company’s requirement.
- HR & Payroll: It includes employee registration, client management, leave management, salary calculation, payroll, etc.
- CRM: Analyse customers by optimising the sales by tracking all important information about your customers.
- Projects: Manage both internal and external projects with sub-modules such as track tasks, timesheets and so on.
- Asset Management: Maintain and Manage details of assets in your business including tiny details of assets.
- Tracking: It enhances the ability to understand important business metrics that can be useful to improve business performance evaluation as well as operational optimization.
- Accounting: These tools are useful to track, store as well as analyse all business related financial information. Financial information includes payable accounts, receivable accounts, budgets, and forecasts.
Different Types of ERP Software
There are mainly four types of ERP systems that function with various deployment models of ERP solutions. These four types of ERP software systems are: 1) Industry-Specific ERP; 2) Cloud ERP, 3) On-premise ERP, and 4) Hybrid ERP.
- Industry-Specific ERP: Industry-specific ERP solutions are focused on a niche industry. This niche can be anything such as retail or construction. This ERP software is specially generalised to the processes and practices for a given industry. This ERP system can be customised based on specific requirements of that industry.
- On-premises ERP: On-premises ERP solution is the one of the types of ERP implementation and deployment. This ERP software has been installed within the physical space of that organisation and maintained accordingly. Companies host the ERP software on their servers. This ERP system is only accessible by administrators within the company’s network only.
- Cloud ERP: A cloud-based ERP system is a software that has been deployed on the cloud-based infrastructure. This ERP solution can be publicly hosted as open source software and available through a subscription. This can also be privately hosted by the particular organisation that can be managed by a company from its own cloud resources.
- Hybrid ERP: Hybrid ERP software is a combination of on-premises and cloud-based ERP system. Based on the company’s needs and requirements, some organisations prefer this Hybrid ERP solution.