Implementing an ERP (Enterprise Resource Planning) software system enables companies to manage and optimize their business processes. If you're planning to implement an ERP system in your company, you may have several questions and doubts about how it will work and what to expect.

We have prepared answers to frequently asked questions about ERP for you.

What is ERP Cloud Solution?

Enterprise Resource Planning (ERP) is a software system that helps you manage your entire business and supports automation and processes in areas such as finance, human resources, manufacturing, supply chain, services, procurement, and more.

ERP modules are integrated into a single comprehensive system and share a common database to simplify processes and information throughout the enterprise. Companies can expand their ERP scope as they grow.

Why is ERP important?

Sometimes referred to as the “central nervous system of the enterprise,” an ERP software system provides the automation, integration, and intelligence necessary for effective management of all daily business operations. Most or all of an organization’s data should be located in the ERP system to provide a single source of truth throughout the enterprise.

What are the benefits of ERP?

It is one of the most frequently asked questions…why is ERP necessary and what benefits can it bring?

An appropriate ERP system offers many benefits – which may vary depending on how the system is deployed. Cloud ERP benefits, for example, are different from local ones. Nonetheless, there are six main benefits that apply to all modern ERP solutions:

  1. Increased productivity.
  2. More detailed analysis.
  3. Accelerated reporting.
  4. Lower risk
  5. Simpler IT.
  6. Improved agility.

How do ERP systems work?

An ERP system, also called an ERP suite, is composed of integrated modules or enterprise applications that talk to each other and share a common database.

Each ERP module typically focuses on one business area but collaborates using the same data to meet the company’s needs. Popular starting points include finance, accounting, human resources, sales, procurement, logistics, and the supply chain. Companies can choose and select the module they want and add and tier as needed.

ERP systems also support industry requirements, either as part of the system’s core functions or through application extensions that seamlessly integrate with the package.

Is ERP Cloud Solution suitable for small businesses?

ERP is not just for global enterprises. ERP solutions are designed for businesses of all sizes – small, medium, and large.

ERP for small business

ERP software for small businesses can help you overcome spreadsheets and efficiently manage all aspects of a growing company – from sales and customer relationships to financial accounting and operations.

ERP for mid-size companies

Also, ERP software designed for companies and mid-market branches currently benefits from built-in analytics, rapid deployment, and proven practices for dozens of different business processes – finance, accounting, purchasing, production, inventory, quality control and so on.

ERP for global companies

Large companies with global or subsidiary operations need a robust and leading ERP system with integrated AI, machine learning and analytics and intelligent automation to transform business models and processes.

What is the difference between Cloud and On-premise?

ERP in the cloud and on-premise ERP are two different options for implementing a software system for business process management. On-premise ERP is installed and operated directly on the company’s premises, while cloud-based ERP is located in the cloud and is available via the Internet.

The main difference between cloud ERP and on-premise ERP lies in where the system is located and how it is accessed. On-premise ERP is operated on a company’s own hardware and software, so the company is responsible for its management, maintenance, and backup. On the other hand, cloud ERP is located on servers in the cloud and the ERP service provider is responsible for its management and maintenance.

How can ERP systems help small and medium-sized businesses adapt to new trends and challenges?

New situations bring new trends that require the ability to adapt quickly. The most successful small and medium-sized businesses prepare for tomorrow’s growth wave. In that case, it is necessary to understand the needs of each business process and prepare for every risk and take advantage of every new opportunity that arises.

On this topic, we have prepared a blog about ERP systems during COVID-19, where you can find out how ERP solutions were able to adapt to unexpected situations.

What are the best practices for implementing ERP systems?

Implementing an enterprise resource planning (ERP) system can be challenging for any organization. Successful ERP implementation requires careful planning and execution to ensure the system meets the organization’s needs, improves operations, and provides return on investment.

Best practices for ERP implementation include strong leadership and sponsorship, involving end-users in the process, aligning business processes with ERP workflows, and careful selection of the implementation team with relevant experience.

Effective communication, training, and change management are also key factors. Additionally, it is important to have a clear overview of the project scope, budget, and timeline and to select the right ERP solution provider. Organizations can optimize their ERP implementation and achieve business success with these best practices.

How do cloud solutions transform a company’s financial management?

Analyzing data and providing insights into a company’s numbers can help provide important information that aids in growth and further development. From data on products and inventory to customers and employees, financial management has the potential to come up with new solutions for future growth.

To achieve these competencies, the right technologies are required. Fortunately, there are cloud solutions that can monitor all data in real-time, allowing for faster and more efficient decision-making.

Being “in the cloud” means that compared to on-premise solutions, costs have been reduced for quickly adapting to a changing market. Costs for other operational expenses have also changed.

How do I know if I need an ERP system?

Most companies start by using various simple standalone tools for managing different business processes, such as QuickBooks or Excel spreadsheets. Here are five signs that you have outgrown these tools and need a modern ERP system. ERP software integrates solutions and data into one system with a common interface, making communication and efficient work easier for business units.

  1. You spend more time on daily activities. If key activity management takes longer than, say, closing books, too many disparate applications may be to blame.
  2. You have a lot of unanswered business questions. Can you easily answer important questions about your business, such as revenue by product line or the number of returned deliveries? If not, segregated systems and inadequate access to metrics and KPIs can hold you back. Enterprise resource planning software is designed to address these challenges.
  3. You have unfinished business processes. Are there areas where your processes are getting away from you? If so, restructuring your business processes to adapt to growth or changing priorities may be necessary, which is naturally suitable for ERP software.
  4. You have manual processes with multiple sets of data. Do most of your departments use their own applications and processes to manage things? If so, chances are you’re spending too much time duplicating data entry. When information cannot flow between systems, reporting takes longer, errors often occur, and decision-making is slowed down.
  5. You miss out on rapidly changing opportunities. Do you spend so much time in your business that you can’t look for exciting new opportunities? Newer ERP systems include advanced, intelligent features like machine learning and predictive analytics that make it easier to identify and capitalize on new opportunities.
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