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Tweet When you search for "ERP" on the web, the sheer amount of information that comes up can be overwhelming—not to mention a little confusing. These differences, however, underscore the flexibility that can make ERP such a powerful business tool.
To get a deeper understanding of how ERP solutions can transform your business, it helps to get a better sense of what ERP actually is and how it works. Here's a brief introduction to ERP and why it seems like everyone's talking about it.
For that, you need to take a step back and think about all of the various processes that are essential to running a business, including inventory and order management, accounting, human resources, customer relationship management CRMand beyond.
At its most basic level, ERP software integrates these various functions into one complete system to streamline processes and information across the entire organization. The central feature of all ERP systems is a shared database that supports multiple functions used by different business units.
In practice, this means that employees in different divisions—for example, accounting and sales—can rely on the same information for their specific needs. Instead of forcing employees to maintain separate databases and spreadsheets that have to be manually merged to generate reports, some ERP solutions allow staff to pull reports from one system.
For instance, with sales orders automatically flowing into the financial system without any manual re-keying, the order management department can process orders more quickly and accurately, and the finance department can close the books faster.
Other common ERP features include a portal or dashboard to enable employees to quickly understand the business' performance on key metrics. Back then, the concept applied to inventory management and control in the manufacturing sector. Software engineers created programs to monitor inventory, reconcile balances, and report on status.
Bythese systems had expanded beyond inventory control and other operational processes to other back-office functions like accounting and human resources, setting the stage for ERP as we've come to know it. Today, ERP has expanded to encompass business intelligence BI while also handling "front-office" functions such as sales force automation SFAmarketing automation and ecommerce.
With these product advancements and the success stories coming out of these systems, companies in a broad range of industries—from wholesale distribution to ecommerce—use ERP solutions. Moreover, even though the "e" in ERP stands for "enterprise," high-growth and mid-size companies are now rapidly adopting ERP systems.
Software-as-a-Service SaaS solutions—also referred to as "cloud computing"—have helped fuel this growth. Cloud-based solutions not only make ERP software more affordable, they also make these systems easier to implement and manage.
Perhaps even more importantly, cloud ERP enables real-time reporting and BI, making them even valuable to executives and staff seeking visibility into the business.
As a result, companies of all sizes and a wide range of industries are transitioning to cloud ERP systems. More specifically, an ERP solution: Gives a global, real-time view of data that can enable companies to address concerns proactively and drive improvements.Welcome to Web Hosting Talk.
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