Enterprise resource planning (ERP) is a process where a company, often a manufacturer, manages and
integrates the important parts of its business. An ERP management information
system integrates areas such as planning, purchasing, inventory, sales,
marketing, finance and human resources. Implementation of Enterprise Resource
Planning (ERP) in an organization can be immensely conductive in optimizing
business operations to improve efficiency and boost growth.
There are lots of
benefits for an ERP System in an Organization for growth of Business.
Some of them are
Better
Information Management Through Business Automation
Performance metrics and
measurements are vital in evaluating business progress and also aid in setting
up future goals. However, as a business grows, it will become increasingly
difficult to manually calculate sales margin, profit ratios and other such metrics.
ERP bring a degree of automation to the business by allowing employees across
the organization to access shared data without the need to maintain manual
records. This also enables generation of synchronized reports on key business
metrics. Immediate access to data is significant to take timely decisions.
Improved
Workflow
Workflow is improved
all processes gets streamlined and access is simplified through user-friendly
interfaces, employees are better able to acquire the relevant information that is
necessary to do their job. Whether it's extracting a custom or standard report or
formulating a report for presentation, ERP software makes each employee's job
easier, which leads to increased productivity.
Streamlining
of Processes
The principle objective
of any ERP is to integrate all the functions of a business into a unified
platform. Many businesses are still stuck in the unenviable position where
their data is stored in multiple locations and systems. By centralizing this
data and streamlining the means of accessing data, ERP contributes to greater
efficiency within a business model.
Simplicity
in Business Accounting
A growing business will
struggle with its accounting procedures if they are still either manual or if
the sales, accounting, finance and HR departments do not have access to shared
data. Financial reporting and everyday accounting will particularly require a
lot of time and effort which can be easily reduced with the use of ERP. Using
ERP to integrate and analyze financial data will improve employee productivity
and reduce delays considerably.
Transparency
Throughout Organization
For any business,
information and data are extremely essential business assets. Data security and
integrity is extremely important to ensure that strategic business information
is processed and accessed by the right people. With an ERP, while the data is
maintained safely, access of data can also be given only to people who have the
authority. Also, strategic information can be maintained at one place while
updates to such information can be done by one or more authorized people. Thus,
Role based system makes ERP transparent as well as secure.
Comments
Post a Comment