What is ERP and How Does It Work?
ERP is an acronym that stands for enterprise resource planning (ERP). It’s a business process management software that manages and integrates a company’s main business processes like financials, supply chain, operations, reporting, manufacturing, and human resource activities often in real-time and mediated by software and technology.
ERP systems provide a comprehensive and continuously updated view of core business processes and help track business resources like cash, raw material, production capacity, and business commitments like orders, purchase orders, and payroll.
Common ERP applications centralize data across various departments like manufacturing, purchasing, sales, accounting, project management, supply chain, and more to facilitate information flow and remove data silos between all business functions and manages connections to outside stakeholders.
Most companies have some form of finance and operational system in place but most of the software that’s out there can’t go beyond everyday business processes or help with future business growth.
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Why ERP Software is Important & Why Use an ERP in 2021?
More and more businesses in Malaysia and Singapore are switching from their legacy systems to more comprehensive ERP systems to increase business efficiencies, reduce costs, automate, and to do more with less.
ERP system is becoming an essential tool for businesses to run a competitive business and enterprise resource systems can bring many benefits to companies in Malaysia and Singapore. Let’s take a closer look at some of the ERP benefits for Malaysian and Singaporean businesses:
- ERP systems help organizations to become more agile that helps them adapt faster and better to change.
- ERP system increases collaboration and increases the speed of employees to gain data from different departments.
- ERP system makes a company more flexible and less rigidly structured so the organization can better improve business processes and innovate.
- The ERP system integrates varied organizational systems and facilitates error-free transactions and production, thereby enhancing the organization’s efficiency
- Most modern ERP software comes with strong data security, helping businesses to protect their valuable data. Which became especially important since GDPR and new data governance policies.
- ERP offers many benefits such as standardization of common processes, one integrated system, standardized reporting, improved key performance indicators (KPI), and access to common data. One of the key benefits of ERP; the concept of an integrated system, is often misinterpreted by the business. ERP is a centralized system that provides tight integration with all major enterprise functions be it HR, planning, procurement, sales, customer relations, finance, or analytics, as well as other connected application functions.
Why Growing Businesses Adopt New ERP Solutions