What is Enterprise Resource Planning?
Enterprise resource planning (ERP) helps collect and organize operational start-to-finish processes, such as those found in finance, HR, distribution, manufacturing, service, and the supply chain. ERP applications automate a range of administrative and operational business processes to increase the firm’s efficiency, and in general, help organizations run their operations. The unique feature of ERP is that it can be used as the organization continues to expand.
While the software allows managers to view the operational processes under one umbrella, each department still has its own system, optimized and customized to fit their specific tasks and needs. Thus, one of the appeals to ERP software is the ease of communication it allows between departments – the software collects the necessary information from one department and then makes it available to the others. It also assists the business in discovering insights regarding their previous vendors and/or past customer experiences. In general, ERP applications can eliminate costly duplicate and incompatible technology that two departments utilize. Also, businesses that require real-time data can have this information at their fingertips, and it can be found in a single system.
Cloud-Based Enterprise Resource Planning
Many small firms prefer the Cloud ERP because it eliminates the need for IT expenditures, like server hardware. According to 2020 research from the IDC analyst firm, ERP was implemented in the cloud for 26.4% of ERP projects in 2019, and is expected to increase to 48.4% in 2024. This percentage may also increase depending on the COVID-19 status surrounding the world by 2024.
But other small firms may prefer a different approach, due to their firm’s needs. For instance, they may desire a warehouse management system (WMS) to handle operational priorities, rather than solely corporate functions like accounting.
A popular Cloud-based ERP is Oracle’s Netsuite, because of its broad range of uses and functionalities that allow analysts to receive real-time data. Netsuite has gained popularity due to its integrated WMS, as it offers more information to execute processes. Some vendors argue that there are significant differences between an ERP hosted on the cloud and ERP solutions specifically built for digital supply chain information systems. One such vendor is IFS, a global option that offers ERP, enterprise asset management (EAM), field service management (FSM), and more, and recently launched IFS Cloud, which manages all of its applications. The IFS Cloud uses “containers” and application programming interfaces (APs) to support rapid integration within both internal and external systems. Those that use IFS Cloud appreciate how they are able to make informed decisions within a single data model and can be completely open with a computer’s native API, meaning that the software is written in the same language as the computer a client uses, enabling the computer to run much faster and more efficiently.
Although a Cloud ERP can reduce IT infrastructure costs, these costs can also lower by firms choosing a strong Cloud option with integrated supply chain functionality. This integration often comes with many benefits as well, as it allows a sort of “checks and balances” system, where companies can monitor the number of materials being correctly used in the production process or ensure that the items ready to be shipped to customers have met their company’s quality standards. An integrated ERP system can also assist the business’ security and help ensure that operations align with industry standards, because the firms that offer the ERP solutions often update their features to help their clients meet the new requirements.
An important thing for companies to think about is the way their firm is organized, because the software can only do so much. Because many firms hope to prevent unnecessary costly expenditures, it is vital for companies to work together and ensure that ERP projects are not divided into too many projects.
What EDC Can Do to Help
Whether you need a team of consultants to produce a complete line of documentation or a single technical writer for a brief project, Essential Data’s Engagement Manager will lead the project from start to finish. At Essential Data Corporation, the quality of our work is guaranteed. Contact us today to get started. (800) 221-0093 or firstname.lastname@example.org
Written by Alexa Do