ERP

Enterprise resource planning (ERP) is a type of software system that helps organizations automate and manage core business processes for optimal performance. ERP software coordinates the flow of data between a company’s business processes, providing a single source of truth and streamlining operations across the enterprise. It’s capable of linking a company’s financials, supply chain, operations, commerce, reporting, manufacturing, and human resources activities on one platform.

Finance requires an ERP to quickly close the books. Sales needs it to manage all customer orders. Logistics relies on well-running ERP software to deliver the right products and services to customers on time. Accounts payable needs it to pay suppliers correctly and on time. Management needs instant visibility into the company’s performance to make timely decisions. And banks and shareholders require accurate financial records, so they count on reliable data and analysis made possible by the ERP system.

 

Drive optimal performance

With solutions that use AI, you’ll access insights that enhance your decision making and reveal ways to improve operational performance going forward.

Accelerate operational impact

By connecting processes and data, you’ll bring more visibility and flexibility to employees, helping them take action quickly and deliver more value across the business.

Ensure business agility

Many ERP solutions are built to adapt to your needs and grow with you, helping you proactively prepare for—and readily respond to—any operational disruption or market change.

The total cost of ERP

The cost of ERP depends on the software vendor, the modules selected, and the deployment method. Generally speaking, cloud-based ERP has lower costs than on-premise ERP because there is no hardware that needs to be purchased – and no expensive in-house IT experts that need to be hired. The vendor handles the maintenance and charges the customer an annual or monthly subscription fee, usually based on the number of users. When calculating the return on investment (ROI) and total cost of ownership (TCO) of a new ERP implementation, the initial and ongoing workforce costs are just as important as the software selection and deployment costs. With cloud and hybrid options, new factors must be evaluated. For example, software maintenance, facility, computer capacity, downtime, recovery, security, privacy, and IT staff costs are all important considerations. As mentioned, cloud options significantly reduce both capital and operating costs – improving both ROI and TCO.

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The business value of ERP

It’s impossible to ignore the impact of ERP in today’s business world. As enterprise data and processes are corralled into ERP systems, businesses can align separate departments and improve workflows, resulting in significant bottom-line savings. Examples of specific business benefits include:

Improved business insight from real-time information generated by reports
Lower operational costs through streamlined business processes and best practices
Enhanced collaboration from users sharing data in contracts, requisitions, and purchase orders
Improved efficiency through a common user experience across many business functions and well-defined business processes
Consistent infrastructure from the back office to the front office, with all business activities having the same look and feel
Higher user-adoption rates from a common user experience and design
Reduced risk through improved data integrity and financial controls
Lower management and operational costs through uniform and integrated systems