ERP Vs. Traditional Systems: Which Is Right For Your Business?
Every business consists of many processes. From simple sales transactions to complex corporate dealings, a prosperous business has a lot going on at any given moment. For owners and executives, it can be very difficult to manage such a sprawling and multi-faceted thing. Of course, technology can be of great help in this department, but only if correctly applied. Let’s talk a little bit about an excellent software solution known as enterprise resource planning, or ERP.
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What Is Enterprise Resource Planning?
This is a type of software that is used to manage and monitor many business operations at once. Such software functions kind of like a “dashboard”, giving you an easy way to monitor and control every aspect of your business. It can also be used to automate many processes, freeing up both payroll dollars and labor hours.
Before enterprise resource planning software came along, things were usually divided by department. Each department head would be in charge of monitoring and regulating their specific section of the company. While there is nothing wrong with subdividing your company into departments, a comprehensive management solution is needed to tie everything together and make it work as a cohesive whole.
Is Enterprise Resource Planning Right For Your Business?
The answer to this question will depend on the complexity of your business. If you are running a small and simple business that only does a few particular things, this type of software may not be needed. However, larger businesses consist of many working parts and can benefit greatly from a unified command.
Some businesses have a lot more risk than others, and those with a lot of risk factors are in greater need of enterprise resource planning. In industries like healthcare, for instance, mistakes can be extremely costly. They can lead to malpractice suits, complications of existing health problems, or maybe even death. Construction operations also require complex oversight to ensure the safety of both workers and the public.
We should also talk about those businesses that deal with a particularly large number of people. Hotels and theme parks would be good examples. When your customers always outnumber your employees by a huge margin, automation and monitoring processes will become a lot more important. That’s how you ensure that every customer has a good experience, even if there are thousands of them.
Aspects & Benefits Of Enterprise Resource Planning
Let’s talk a little more about what this software can do for you and your business. First of all, it tracks information across all departments and sections. In one place, you can access up-to-date information regarding marketing, sales, IT, customer satisfaction, payroll, inventory, shipping, and pretty much anything else your company does.
As you might expect from the name, ERP software focuses on the use of resources. This includes money, raw materials, personnel, and all other business assets. This presents a natural and convenient way to break down your daily operations into categories.
Perhaps the biggest advantage is the ability to make better decisions. When you are better informed, you are likely to make better decisions. When set up properly, enterprise resource planning gives highly accurate and up-to-date information. This increased visibility also makes it easier to eliminate waste and redundancy.
Web-Based Vs Cloud-Based
If you choose to set up an enterprise resource planning system, you have some options from which to choose. The most important of these is the choice between web-based software and cloud-based software. Cloud-based software is usually more secure, while web-based software is usually more versatile and portable. So, if you have a lot of remote workers, the web-based option might be better. However, cloud services offer a lot of side benefits, and these should also be weighed carefully.
In most cases, enterprise resource planning offers significant advantages over traditional department-segregated systems. When your business information is divided, it becomes harder to get the big picture and manage the whole enterprise effectively. This kind of software offers a way to check and monitor everything at once, allowing you to turn a bunch of tribes into a united nation that will set out and conquer the business world with great effectiveness.