November 10, 2020
What is ERP?
ERP, coined in the 1990s, is an acronym for Enterprise Resource Planning. ERP software is comprised of powerful and strategic business process management tools that can be used to manage information efficiently within an organization. It is essentially made up of applications that can bring together different processes to help your employees collaborate and create one fluid system, thereby eliminating the need to have multiple software systems for each function of the business. ERP is flexible in its management and operations; in other terms – it can be outsourced to a managed IT services provider or even managed in-house.
ERP Is Critical for Your Business; Here’s Why-
The right ERP system can help your business by streamlining your data collection, storage, and usage. As ERP continues to evolve to include more processes and functions within it, it primarily helps with managing finances, human resources, manufacturing, and supply chain management.
Some of the Benefits of ERP Include:
- Providing business leaders with real-time visibility into their operations.
- Giving business leaders and teams instant access to their global supply chains.
- Enabling business leaders to identify challenges, uncover opportunities, and make faster decisions that impact different areas of their businesses.
- Automating and streamlining tedious tasks and redundant processes.
- Increasing productivity among your team.
- Easy collaboration with each other and with third-party vendors.
- Powerful reporting and forecasting tools that can be used to make informed decisions about the future of the business.
Multiple Approaches to Implementing ERP
Enterprise-wide Full Installation This approach was common in the early years of ERP, but many faced challenges. Companies encountered issues in getting all their employees to cooperate and accept a new software system simultaneously. However, this method can be successful with proper training, transition, and high-level support.
Unit by Unit This is a common approach among large or diverse companies where there are not many common processes across business units or when business units are spread out globally. Management will identify and locate a particularly open-minded and flexible team and install a pilot ERP installation in that department. With trial and error, organizations will begin to replicate what works across departments over time. Though this process can be somewhat time consuming, it often leads to increased employee acceptance of the new ERP application.
Key-Process Installation Usually done in small to mid-sized organizations, key process installation is when companies often opt to focus on a few key processes. For instance, they may decide to start using the ERP application’s financial module and add other features as the company grows. This method is also known to be time consuming.
Outsourcing your ERP systems For many businesses, supporting your own ERP hosting solution systems in-house can prove to be a time-consuming and costly procedure. Outsourcing the requirements to a managed IT services provider can often prove to be a more cost-effective decision.
You can help your company make data-driven decisions and advance business productivity. Contact Pathway Communications today if you’re looking for an IT managed service provider in Toronto.