Why ERP Software is Important For Business or Organization

  • By Sam Khan
  • 29-01-2021
  • Software
erp software

Enterprise Resource Planning (ERP) has been ruling the market for more than 60 years now and still counting. Although business organizations are adopting ERP at a remarkably progressive rate, however, most of them are still unaware of its significance and potential. Business markets and the enterprises operating within them are increasingly becoming fiercely competitive. Nowadays, ERP has become a trend, mainly because it boosts profitability and productivity within an organization. This is the reason why ERP is anticipating to be worth around US $ 86 billion by the end of 2022, as its operational efficiency is constantly improving. In this blog post, we have discussed Enterprise Resource Planning, and that when a business organization needs it? And what is its significance for a business?

Enterprise Resource Planning (ERP) – A Quick Overview
Every business enterprise involves a long list of operations and service types that work relentlessly for its success. Some of them are core business processes, with which every company has to deal. These processes or operations normally include Sales, Finance, Human Resource, Marketing, Supply Chain, etc. If we tend to define ERP in simple words, it is a tool or software which integrates multiple business operations to enable their effective management, synchronization, and improved results for productivity and profitability. ERP can be used by various industries in a similar way for their core business processes. Industries like Construction Industry, Healthcare Industry, Logistics Industry, Retailing and Manufacturing Industry, etc. have been taking advantage of ERP for years and years now.

When A Business Enterprise Needs an ERP System to Be Adopted?
ERP is not something that you can keep on your wish list if your enterprise still doesn’t have it, then it should be the first thing on your to-do-list. In an organization, there are several processes other than ERP, so if you keep thinking of the right time of getting ERP, then there could be no specific, defined right time. It may vary from company to company. And, there is also no compulsion or obligation for an enterprise to adopt ERP. For instance, if you feel that your organization is losing its lucrativeness, or dropping communication through mails; or that you have no personalized interaction with your customers; then it is probably the high-time for your enterprise to get its hands on ERP.

What Is the Significance of ERP for A Business Enterprise?
It is not only the large business organizations but also small ones that should look for ERP adoption and integration, to experience countless benefits that it offers. Here, we have listed down the five major areas of importance, which you must consider while making the smarter choice of adopting ERP.

1. One System to Manage All Your Business Functions
One of the foremost and the biggest benefit of ERP which attract most of the user companies is its exceptional management capacities. Since ERP is a management tool designed to manage and integrate core business processes, it provides incredible assistance in the effective management of human resources, finance, sales, logistics, manufacturing, retailing, etc. ERP integrates all these core business operations under one system which facilitates their efficient management through cohesion and integration. For instance, as soon as an order is confirmed by Sales Team, the ERP system will generate an order statement automatically to the Finance Department, Inventory Management Department, and Procurement Department so that the stock can be timely updated and replenished.

2. Significant Reduction In Cost
We agree that ERP is not a small investment, but it is also an investment that comes with plenty of benefits for the long-term. Although ERP is an emerging trend, yet there is a wide range of open-source tools available in the market. Hence, for companies that are looking for less expensive and short-term investments, then they can opt for this software and systems. However, by doing so, not only their fixed capital gets reduced, but it also does not contribute to the effectiveness of the working capital in the long-term. Because every core business process requires the engagement of one management tool. But, with ERP, you don’t need to get the individual system for every process, and there is also no need to train employees about multiple platforms. Using ERP spare resources, time, and money, that can be focused and invested in other options.

3. Remarkable Boost In Productivity
Tasks like reports generation, and then downloading them and sending them takes a lot of time, and there are still chances that you miss the deadline or may forget to send. However, with ERP, these procedures can be easily and quickly accomplished, which saves time and improves employee efficiency while enabling them to use their spare time and focus to do other important tasks. ERP implementation leads to streamlined information flow among employees, which increases the efficiency and productivity of everyday operations. Hence, ERP is considered to be one of the central software implementations for a firm that is looking for reducing its operating expenses and improving its employee efficiency.

4. Enhance Communication
Maintaining effective customer relationships is one of the most difficult tasks. Being overly occupied by paperwork, employees usually get over from accommodating customers; which also results in downgrading of lead generation and then conversion too. With ERP, the employee can better focus on customers’ feedback and issues. ERP facilitates to manage all those problems through a single platform, which ultimately encourage better communication and relationship with customers.

5. Effective Customer Relationship Management
Communication within business organizations usually lacks amid corporate hierarchy. Employees normally fail to get connected and all their everyday communications get piled up within mails. Efficient workplace collaboration is a must for every successful business organization. ERP provides effective tools for communication that foster task delegation, file sharing, group chats, etc. to efficiently and effectively manage business operations and projects.

ERP is strengthening its roots day-by-day and business organizations are increasingly adopting ERP systems for their prosperous and better future. In Code Creators Inc, ERP software is available in a wide range in the market and some of its versions are also available as open and free source.


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Sam Khan

Sam Khan is a Professional Digital Marketer at Code Creators Inc, Which is providing software development, mobile apps, SharePoint, and IT services. This is well-reputed in the industry for providing high-quality and affordable services to its clients all over the world.

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