Why is an ERP System Important For Your Company?

A business organization has many departments that need to be taken care of. In every organization, different functions like inventory, accounting, finance, HR and manufacturing resources need to be managed efficiently.

Even in a well-organized firm, managing and monitoring these different processes manually can prove to be difficult. To overcome mishap, firms and companies have put their trust and hopes into the hands of modern technology.

The evolution of technology along with the advent of Artificial intelligence and Machine learning has given business owners hopes. Now everything can be integrated into one system that would efficiently manage and monitor all the process of the company. This system is an ERP System which is also known as an Enterprise Resource Planning System. ERP systems provide intelligence, efficiency and transparency to the business operations. ERP system can use digital assistance along with the integrated IoT technology within the modules. This could help in smooth decision making and effective analysis.

How ERP Development Works

This system is designed using a pre-defined data structure that has a common database for the storage of the data and information. The ERP system links up the data from different aspects of the business organization and allows the users (with permission) to access the information for management purposes. Instead of having many database/spreadsheets or using manual way of maintaining data like record books and files, the ERP system uses a centralized data repository.

The ERP consist of a core software component which is known as a module. This module manages the different regions of the official areas like the finance and accounting, human resource, access control, manufacturing, project management details, CRM, purchase and all billing records. Furthermore, the software system can be installed in smartphones of all employees to ease the office functions through automation.

The Different types of ERP System

Different types of ERP system are used for different industries.

There are three different types of ERP system based on their working principles:

• Cloud based ERP System- it is also known as SaaS or Software as a Service. It allows the access of the enterprise resources planning
• On- Premises ERP System
• Hybrid ERP System

Advantages of using ERP software

The three different types of ERP system have basically the same function when it comes to regulating the end to end functions of an organization. This means that the companies that install an ERP system do not need a single software system for each work process. There would be no need to make a double entry for the updates of the systems as in case of the single software. However, the size of the company most of the times matter. The Large companies with many different regions would need a large ERP system while a small company would be only needing small or mid-level ERP.

Some of the Advantages can be listed as:

• Increases the efficiency by automating the collection of the data.
• Inhibits the growth of the business by handling many complex business processes
• The risks are lower
• It allows the sharing of the data with the integrated information
• Allows the data sharing and integrated information
• Gives business intelligence and improves the supply chain management
• It offers the next generation solution like Artificial intelligence and Internet of Things to be integrated with the ERP solution
• The admin of the business can manage all the modules of the ERP system remotely
• Machine learning and AI can give better business solutions and decision making.
• Powerful analytical tools allows decision making and helps in inter-departmental data sharing
• It saves a lot of money for the organization via streamline process.
• Can help the company cut down on the manpower as the skills required for the operation
• Improves the supply chain management system

Reason Why ERP Is Important

Since a business organization can have many different areas of operation, it becomes important that every area is periodically checked and assessed. This keeps a general track of the growth of the company and also allows the business to focus on the day-today operations with ease. Since the market is competitive, only businesses that have good management skills tend to thrive and grow. The ERP model and system allows the company to understand the limitations and constraints. This gives business SWOT analysis of itself allowing it to make all necessary changes within the firm for the betterment.

The advanced version of ERP systems give a streamline workflow and omit the reliance of the company on manual procedure. This drastically decreases the error rate of the company giving it time to focus on the weaker areas. The analytical aspect of the ERP along with the CMS allows the company to retain its customers more effectively. The growing popularity of the ERP software is all due to the mobility and reliability it gives the business owners. It enables the employees to use this software on their mobiles or tablets at any place or time. The entire process is connected through the internet giving flexibility to the organization. The ERP system is evolving daily to fulfil the requirements of business owners, making it one of the game changers in the business world.

Organizations have always had a hard time to strike a balance between its high costing and complexities with flexibility. Keeping the processes in track while meeting the demands of the business is simply too hard for the entire organization to manage. The ERP systems allow the business to manage the key operations without compromising on the productivity. Through the help of ERP system, businesses can operate at their full potential without having to worry about the data, documentation or flexibility. The knowledge is readily available to the employees and the owners. ERP is the new thing now, either you have it and give your business the boost it needs or fall back.

HIPL aims to provide good business solution to business firms through custom ERP software solutions. With a team of skilled Android and IOS developers, we design software for all types of business. Nowadays, businesses are switching to the ERP software to manage all their tasks. You can now get your very own ERP and watch your business thrive. Contact HIPL for your very own Custom ERP Software Development Services.