- November 11, 2021
- Posted by: Heba Farid
- Category: Software Development
Why your business needs ERP System?
What is ERP? and Why your business needs ERP System?
ERP is a brief for (Enterprise Resource Planning).
It is a group of applications and programs that is designed and built to manage day-by-day business processes and operations.
It is a business software Systems that integrates and Operates all the processes of business.
From tracing of stock materials, management of inventory, production Optimization and scheduling, to financial reports and scheduling and even (CRM) customer relationship management.
As William Pollard says, “Information is a source of learning. But unless it is organized, processed, and available to the right people in a format for decision making, it is a burden, not a benefit.”
History of ERP Systems Evolving:
ERP systems was first invented in the year 1990 by “Gartner Group”, but the idea of ERP Systems was considered since 1960.
1960 – Inventory Management Systems
Hence, it management systems is only applied to inventory and stock optimizing and managing.
Technology engineers designed and built semi ERP Software systems to help manage the inventory, and report raw materials status.
1970 – MRP (Material Requirements Planning)
But in 1970, these simple programs evolved to (MRP) Material Requirements Planning systems to help in organizing production processes and operations.
1980 – MRP II (Manufacturing Resources Planning)
And by 1980, “MRP” Programs were redeveloped to help in more manufacturing processes. Then the Manufacturing Resource Planning “MRP-II” Systems appeared.
1990 – Semi ERP (Enterprise Resource Planning)
After 10 years, in 1990, these systems obtained more features, and not only handled the inventory. But also all other office functions like financial matters, engineering and software projects, (HRM) human resource management ,and (CRM) Customer relations management.
2000 – The Y2K bug and Evolving of ERP
As all programs in the 90s were designed to abbreviate four-digit years as two digits in order to save memory space.
At the first hours of January 1, 2000, many computers were using incorrect dates, which caused a failure to operate all processes properly, and this problem was widely known as (Y2K Bug).
The Y2K Bug was a worldwide crisis in the 2000s, to know more about it. Check out the encyclopedia of National Geographic society, From Here.
ERP II or the modified version of old ERP systems, was designed as a new integrated software solution, to withstand the “Y2K” crisis.
This new ERP software Systems has access to other functionality beyond the business, like supply chain management, CRM, HRM and much more.
Why your business needs ERP System?
No matter what size of business you are, in order for it to be profitable and effective, it needs organizing and best performing programs and tools.
How can ERP help your business?
ERP systems help all types of businesses to have a greater visibility into every supply chain operations.
ERP software guarantees access to all needed information, which allows the managers and business owners to make critical decisions based on analysis, reports and ground facts.
It also gives the business a competitive advantage in their market and industry.
And as a result ERP systems make problems more easily identified and solved, Plus helping operators to make the right decisions.
Have you ever asked yourself why many businesses are looking for ERP Solutions?
And why your business need ERP system?
In Brief, according to the latest statistics data in 2021. More than 80% of businesses and companies are already considering or started the process of implementing ERP systems.
And more than 50% of this percentage have already successfully started and implemented ERP solutions.
Enhancing & Optimizing Efficiency
ERP systems can help to simplify many processes and operations that will consume a lot of time and effort when you do it manually.
You can operate all repetitive missions; like, inventory management, monitoring working hours for employees, assigning tasks to them, distributing salaries and awards and motivational programs, fully Integrated financial reports, and much more.
When you automate all these time-consuming processes. You and your employees can spend much more time focusing on business objectives, and core working tasks.
ERP software solutions can provide all the needed data for managers and stakeholders with one-click only!
which will be reflected in fast and right decision-making, monitoring all performance indicators in the company through the dashboard of the ERP system.
Lower Operations expenses
ERP systems can help the business to save costs of operations.
As all the operations will be done automatically, a lot of delays and manual time-consuming processes will be properly performed. And also will be done in no-time and effortlessly.
ERP Software solutions had a great part in reducing labor, because ERP systems handle every daily task.
Increase Team Cooperation
Cooperation between different departments is a core and important sector for any business.
ERP systems can melt down all the barriers between departments!
As all the data is stored inside the ERP programs software, you can give the access to the data through the dashboard to any department inside the company.
And the need for the value increases especially after the pandemic of covid-19, and the working-remotely concept that developed through this past year as a new base all businesses all over the world have to adapt to and embrace.
Accurate Predictions
The most core thing for any business is to be able to make accurate predictions and understand the business model very well to take responsible and right decisions.
ERP helps business owners to rely on accurate reports to make true predictions. To make the decisions with a better point of view.
It also have so many reports tools that use advanced techniques, filters and analytics to detect the inconsistencies in data.
ERP software systems also make sure that all the data is generated is accurate to give you the ultimate business reports to help make the correct decisions always.
Secured Data
ERP systems have many secure performance measures, like; Firewalls and restriction controls to help block any data violations.
The system of ERP solutions keeps all the data safe in one point. So that the needed access points can be easily monitored.
Only admins and who have permissions can manage the company data, and only them can give limited access to certain chosen to employees.
For example, Managers can hide important data and make it only visible for them, thus, giving each employer permission to just view his financial data.
Admins also have the permission to deactivate the access given to any employee with one tap!
Which business Can Benefit from ERP Systems?
ERP was originally built for the manufacturing industry, but now the software solutions has evolved the ERP role to all industries.
Like; HR (Human Resources), Education, real estate, retail, health care, food and restaurants, and even governmental industries.
Every business that deals with employees, management, selling products or services, distributions, and financial matters, can benefit from ERP software programs.
Why your business needs ERP System? And how to decide that?
Every business has a different model, and even the companies that share the same inquiries and objectives, face different challenges.
The real question is ” Why your business needs ERP System? And how to decide that? “
Here are some factors that will help you decide if your business should consider having an ERP system or not…
Every business has a different model, and even the companies that share the same inquiries and objectives, face different challenges.
The real question is…
Why your business needs ERP System? And how to decide that?
Here are some factors that will help you decide if your business should consider having an ERP system or not…
- You spend too much time on tasks that you can do it automatically instead.
- Some operations or processes require repeated steps.
- If you need reports you can rely on its accuracy 100%.
- You work with many suppliers or distributors.
- To share basic ground data between you and your employees more quickly.
- Monitor your employees activities, attendance, working hours, and tasks.
- Your business requires decision making on many steps to elevate.
- Enhance the collaboration between team members, from different sectors and departments.
- To identify any problems facing the business process.
- Monitor the stock and inventory and track raw materials.
- Day-to-day task handling and distributing.
- Integrate different features in your business.
- Manage your business remotely while you are outside the office.
If all or any of these subjects are relevant to you, then you absolutely need an ERP Software solution.
