The world is experiencing rapid globalization and lightning fast technology innovations each day. Thus, Companies are forced to adapt the agile business models. On the other hand, increased outsourcing and changing regulations are disturbing the business culture of every organization. To clear this chaos of Business Operations, Enterprise Resource Planning (ERP) comes into picture.
What is ERP?
ERP stands for Enterprise Resource Planning. It is the process of integrating important business operations using consolidated software interface. The operations include marketing, sales, inventory, finance, accounting etc. ERP also enables efficient customer relationship management, supply chain management systems, visual analytical reports and much more. Thus, using ERP the whole organization comes under one shed.
Why is ERP needed?
Every company or organization has a different work culture. But, all of them face few common challenges. Organizations needs an efficient way to store and access their data. This is where the need of ERP softwares arises.
If your business shows the following signs you are certainly in need of ERP:-
- If data is the heart of your business and you have to circulate it inside out.
- Your team is spending much of their time in the tasks which can be simplified and computerized.
- You have acquired a lot of software applications in order to perform different tasks. And all these applications are not connected to each other.
- You are not able to access the data and information of your business remotely.
- Your business is widespread across the globe.
- You are not able to identify and fix a problem at an early stage so as to run your business operations in a smooth way.
- You’re unable maintain the inventory standard on day to day basis.
- You are individually spending lot of time in analyzing your business insights.
- There is a lack of information flow among your team causing difficulties in planning business strategies.
- Software systems you use fail to provide predictive analysis and advanced business insights.
Leading ERP software applications:-
It stands for Systems Application and Products in Data Processing. SAP is a European Multinational which only deals in ERPs. It was founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira. By definition SAP is just the other name for ERP. The company is #1 in ERP market for decades.
Most importantly, SAPs softwares have large number of modules that cover every instance of business management from head to toe. Till near 2010, SAP has more than 140,000 installations over 25 peculiar business solutions. Correspondingly, SAP has a whopping customer base of 75000 across 120 countries.
2. Microsoft Dynamics 365
Microsoft Corporation introduced Dynamics 365 on July 2016 and was available in market by November 2016. The product line is a combined package of Enterprise Resource Planning and Customer Relationship Management. It was the first step by tech giant in the ERP market. It is being sold in two major editions. First is Business Edition for small and medium category enterprises. Second is Enterprise Edition for medium to large category of enterprises.
The application consists of 12 different modules of business operation such as Sales, Marketing, Finance, CRM, SCM, commerce and so on. Surprisingly, Microsoft’s Dynamics 365 is used by itself so as to manage and process the latest updates on its Windows Operating System.
3. Oracle ERP Cloud
Oracle ERP cloud is #3 on the list. The product was introduced by Oracle Corporation in 2012. Oracle’s ERP Cloud is basically a cloud based software as a Service (SaaS) suite. The cloud application suite manages business operations using ERP concept.
Oracle ERP cloud suite is embedded with 9 ERP modules. They are Enterprise Performance Management (EPM), Financials, Procurement, Project Management, NetSuite and so on. Similarly, their customer base consists of organizations like Bank of America, Thomson Reuters, Qantas etc.
To summarize, enterprise Resource Planning provides an integrated system for business operations. ERP provides real time business insights. Companies using ERP adapt agile qualities in their work-culture. Therefore, turning themselves to become more flexible and less rigid. Over the last two decades, ERP is a multi-billion dollar industry and the numbers are on the rise.