The New Era of ERP
Enterprise Resource Planning (ERP) is a process by which companies can integrate all the aspects of their business, including financial, manufacturing, human resources, supply chain, commerce, and operations, into one system. Large organizations typically have large departments, each with its system optimized for specific tasks. ERP applications make it easy to access all the systems with a single interface.
Why Is ERP Important for Business?
Companies make use of enterprise resource planning for various reasons. The aims of implementing an ERP system may differ from one company to another. A primary goal for most organizations is to optimize their operations to drive optimal performance. Some of the benefits worth noting include the following:
ERP solutions that enable integration and automation of business processes help eliminate errors and redundancies and improve accuracy. When departments have interconnected processes, information flows freely company-wide, and they can synchronize work to achieve greater results.
ERP solutions are generally designed to adapt to the client’s business needs. This means the system grows with the company, enabling the decision-makers to proactively prepare for any market change. Additionally, the system provides actionable insights to help respond to any operational disruption.
Access to real-time data from a single system dramatically enhances reporting. Complete, accurate reporting makes it easier for a company to adequately plan for the future, create a budget, and forecast the company’s position. ERPs enable upper management to quickly communicate the company’s state of affairs to interested parties, including shareholders or potential investors.
What Is the Timeline for an ERP Implementation?
Generally, there’s no specific ERP implementation timeline because the process will vary based on different circumstances. This is often a result-driven thought process, meaning it cannot be rushed through. ERP implementation typically takes anywhere from six months to two years.
Some of the major factors that determine the timeline include:
- The size of the organization
- The system’s complexity
- Integration with other systems
- Expected system users
- Cloud vs. on-premises
What Is the Impact of an ERP System?
ERP implementation automates and streamlines business operations for increased efficiency and productivity. It gives business owners and leaders real-time visibility into their business operations, which helps eliminate inefficiencies and cut down costs. It also helps work towards a more synergized workforce that increases employee satisfaction.
New ERP Features
With the current technological advancements, ERPs are evolving to include new capabilities and move into an advanced development stage. Some of these capabilities include:
Cloud solutions can significantly expand the capabilities of ERP systems. Incorporating cloud computing with ERP solutions eliminates the need for businesses to spend on extra hardware, thereby cutting down on costs.
An AI-enhanced ERP system automates routine tasks and streamlines all the links in the business operations chain. A fully automated process delivers instant results and reduces business operational costs.
Software as a Service (SaaS) solutions are easily incorporated into existing ERP systems. With the wide variety of features offered by SaaS programs, the ERP platform becomes even bigger and more powerful.
Implications for the Team
Implementing an ERP system in a company creates a resource hub that is always accessible and up-to-date. This makes human capital management easier and includes the hiring process. A team can identify gaps that should be filled and replacements to be made.
How We Can Help
Ghost Mountain provides business consultancy services to help businesses with whatever challenges they’re trying to overcome. We also offer recruiting options for all accounting and senior finance staffing needs. Connect with us today to discuss any issues that we can help resolve.