Enterprise Resource Planning or ERP refers to thinking of business processes that are required to run a company. An enterprise has several wings such as manufacturing, finance, human resource, supply chain, procurement, services, and many others. ERP helps in managing all these processes quite efficiently in an integrated system. It is also often referred to as the system of all records of an organization.
However, today's ERP systems are far from simple and bear little resemblance to ERP from decades ago. They are now delivered through the cloud and employ cutting-edge technologies such as artificial intelligence (AI) and machine learning to provide intelligent automation, increased efficiency, and real-time insight across the business. Enterprise app development companies make sure to design modern cloud ERP software which connects internal operations with business partners and networks all over the world, providing businesses with the collaboration, agility, and speed they require to compete today.
What is ERP?
ERP, is basically a software system that assists you to run your entire business, including several processes in human resources, finance, manufacturing, services, supply chain, procurement, and more.
Why is ERP Important?
An ERP system, also known as the "central nervous system of an enterprise," provides the automation, integration, and intelligence required to efficiently run all day-to-day business operations. To provide a single source of truth across the business, the ERP system should house most or all of an organization's data.
To close the books quickly, finance requires an ERP. ERP is required by sales to manage all customer orders. To deliver the right products and services to customers on time, logistics rely on well-running ERP software. ERP is required by accounts payable in order to pay suppliers correctly and on time. To make timely decisions, management requires instant visibility into the company's performance. And because banks and shareholders rely on accurate financial records, they rely on the Enterprise app development companies' reliable data and analysis.
The importance of Enterprise Resource Planning software to all businesses is demonstrated by the gradually growing adoption rate. According to G2, “The global ERP software market is projected to reach US$78.40 billion by 2026, growing at a CAGR of 10.2% from 2019 to 2026.”
How do ERP Systems Work?
An ERP system, also known as an ERP suite, is made up of integrated modules or business applications that communicate with one another and share a database. Each ERP module typically focuses on one business area, but they collaborate to meet the needs of the company by using the same data. Popular entry points include finance, accounting, human resources, sales, procurement, logistics, and supply chain. Companies can select the modules they want and add on and scale as needed.
Online ERP Software also supports industry-specific requirements, either as part of the core functionality of the system or through application extensions that integrate seamlessly with the suite.