Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.
Finance requires an ERP to quickly close the books. Sales
need ERP 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 ERP 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.
The importance of ERP software to businesses is illustrated
by the growing adoption rate. According to G2, “The global
ERP software market is projected to reach US$78.40 billion by 2026, growing at
a CAGR of 10.2% from 2019 to 2026.”
6 Key Benefits of ERP
A good ERP system offers many advantages — which can
vary depending on how the system is deployed. The benefits of cloud ERP, for example, are different than
on-premise. That said, there are six major benefits that apply to all modern
ERP solutions:
Higher productivity: Streamline and automate your core
business processes to help everyone in your organization do more with fewer
resources.
Deeper insights: Eliminate information silos, gain a
single source of truth, and get fast answers to mission-critical business
questions.
Accelerated reporting: Fast-track business and
financial reporting and easily share results. Act on insights and improve
performance in real-time.
Lower risk: Maximise business visibility and control,
ensure compliance with regulatory requirements and predict and prevent risk.
Simpler IT: By using integrated ERP applications that
share a database, you can simplify IT and give everyone an easier way to work.
Improved agility: With efficient operations and ready
access to real-time data, you can quickly identify and react to new
opportunities.
Importance of Using Cloud-based ERP
One of the biggest obstacles to any new ERP solution is the implementation time. Enterprises can usually start and run ERP systems faster on the cloud than locally as running cloud-based ERP does not need to select and set up hardware or hire and train their personnel.