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What Is Enterprise Resource Planning?

Enterprise resource planning (ERP) is the process organizations use to manage the various segments of their business. These segments can include operations, sales, resource management, and more. Often, businesses use end-to-end ERP systems to address their varying needs, though this software can be pricey, depending on the type. 

Where many PM tools speak to specific ways of improving business processes (collaboration, automation, etc.), an ERP system may like include CRM, supply chain management, business intelligence, resource management, financial tools, and more, all in one place.

The benefits of ERP

The advantages of ERP for your business can be huge. Here are just a few to consider:

  • Reduced costs
  • Saved time
  • More visibility/transparency
  • Better collaboration
  • Improved employee productivity
  • Streamlined processes
  • Better data security
  • Regulatory compliance

What is enterprise resource planning software?

ERP software refers to the tools a business can use to consolidate its various working parts and manage them successfully. As mentioned earlier, an ERP system can include lots of different areas of business, and an integrated software solution can make automating and streamlining these processes much easier. Your ERP software may include tools for project management, account and budget management, customer relationship management, or any process relevant to your business.

Choosing ERP software

There are many factors to consider when choosing ERP software for your business. Here are some questions to ask yourself before choosing which one is for you.

1. What are my business requirements from an ERP?

You may first ask yourself if your business even really needs ERP software. But if you are looking to grow and stand against your competitors in a challenging market, ERP software is a no-brainer for helping you achieve your goals. The real question is, what do you need from your ERP? This depends on the size of your business, your industry, your pain points, and where you need help to streamline and scale processes. Spend time speaking with your team and researching what an ideal ERP software would look like to you.

2. How ready is my business to implement an ERP?

If you have never used ERP software before, it can be a huge change and may upset some of your team members. Implementing a new software system is never easy, and it’s important to remain transparent as you move through the process of choosing an ERP. Let your team know what will be expected of them, the processes they may need to learn, and where they can go should they have any problems or questions.

3. Is this ERP tailored to my business needs?

As you begin to look at your ERP software options, be sure to schedule some demos and calls with prospective vendors. Ensure that your questions are answered thoroughly, all of your ideal features are present, and you feel that your chosen vendor understands and supports your business needs — you don’t want a generic sales pitch without any tailoring to your company.