What are ERP Systems? Think of Them as Your Information Lifeboat

What are ERP systems? ERP systems, or enterprise resource planning systems, have two core functions: one, to help your business management information move throughout your whole organization, including sales, CRM, manufacturing, quality control, finance and human resources, for example. Second, ERP systems manage your information flow as it responds to the needs of stakeholders beyond your internal organization.

ERP Systems Can Be a Steady Presence

Think of ERP systems as a lifeboat for your critical production, inventory, shipping, customer service and financial data. They give you the security you need from day to day, running smoothly as if behind the scenes, even if you aren’t actually thinking about your ERP processes at the moment. If a crisis strikes, ERP systems are already in place, ready for helping you analyze and report a problem using real-time data – or better yet, head off that problem at the pass.

ERP Systems Are Integration Points

Still, there’s more to the question “What are ERP systems?” They’re the integration point for internal management information and the information that goes outside your organization’s walls. They can accomplish this task in several ways: using hardware, network tools, database functions and on-demand software. The information operates in real-time across a centralized database, and your various modules should have a similar appearance and usability.

ERP Captures Data Across Systems, Not Just Divisions

Historically, ERP is the evolution of material requirements planning, which also became known as manufacturing resource planning. You consider that ERP captures all the best of these earlier processes and integrates them with newer technologies for making data current and accessible.

Several information systems can be rolled into one with ERP. This includes all the functions of your accounting, plus your manufacturing processes and those for product lifecycle management. ERP is the primary way to integrate supply chain management, project management and customer relationship data.

Sail Away from Broken Customer Promises

What is ERP? Sometimes referred to as enterprise application suite, ERP can combine back-office functions with front-office and customer focused management. This means your inventory and warehousing can be communicating smoothly with sales, marketing and ecommerce systems so you never have to be “out of stock” for a key buyer. ERP is your lifeboat away from broken customer promises.

Best Practices, And ERP Systems As-You-Go (and Grow)

As ERP has evolved, the systems have become more able to accommodate industry best practices. Many ERP modules have best practices already built in, but you can still customize how those practices apply to your business. These can span from web services to reporting to quality control and configuration practices.

ERP systems are typically offered on a buy-what-you-need basis. You may be ready for a full suite of accounting ERP modules, or you may want to retain your current accounting for a time while you adjust to ERP-based modules for production and human resources. As your selection of modules grows, so does your ultimate level of efficiency gains from ERP – but so, too, does your need for a culture change or implementation and adjustment period.

ERP Systems are Great, But Not Designed to Perform Miracles ...