What is ERP?

22. 11. 2022

ERP stands for Enterprise Resource Planning. In practice, this is the name given to a comprehensive enterprise information system via which a company plans, manages and integrates all or most areas of its activities. Typically, these areas are:   

  • CRM customer relationship management 
  • Project planning  
  • Financial management and accounting  
  • Warehouse management  
  • Circulation of documents  
  • Buying and selling  
  • Marketing and web tools  
  • HR and payroll    

Each department works in a different way, with different agendas and workflows, and therefore has specific requirements for software to help them organise, simplify and automate routine activities

You could say that each department needs its own application. With ERP, each department does in fact have its own application, fully integrated with all the others. A comprehensive information system can communicate, share information and automate activities between all departments throughout the organisation. Thanks to integrated web solutions and customer portals, customer and supplier processes can also be directly linked to the ERP system. Have a look at a case study from Sodexo, where a well-chosen ERP system increased sales by 10%. 

Main benefits of a comprehensive information system

Thanks to modern technologies and artificial intelligence (AI), ERP systems help companies optimise their operations and in doing so save a considerable amount of costs and time. So what are the main benefits of ERP? 

  • Integrating all your business processes and applications in one place will simplify your work. 
  • Increase your company’s efficiency and productivity with smart automation.  
  • The flexible scalability of modern information systems allows you to use them to precisely suit your current requirements and size.  
  • Clear reports across the entire company give a comprehensive view of how your business is performing.  
  • The web interface allows the ERP system to be used anywhere in the field or by people working from home.  
  • Integrability to your internal applications and client systems.  
  • You don’t need your own infrastructure. You can run a modern enterprise information system not only on-premises, but also in the cloud.  

Implementation of ERP  

ERP systems often functionally cover wide areas of operational and business activities - their implementation is often a complex and challenging task with many risks.  

However, this need not always be the case. Modern cloud-based modular systems can be introduced gradually in individual areas of your business without the need to invest in infrastructure.

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