Enterprise resource planning (ERP)

As a platform used by companies to manage and integrate key parts of business, many ERP software systems are very important to companies, because it enables companies to carry out resource planning by integrating all the processes needed for company operation into one system.
ERP software system can also integrate planning, purchasing, inventory, sales, marketing, finance, human resources and many other functions.

Understand ERP system.
ERP system is a system that connects all kinds of computer systems in an enterprise. For a large enterprise, if there is no ERP system, each department has an optimization system for its specific task. With ERP system, each department has its own system, and the whole system can be accessed through an interface.

What does ERP do?
ERP system is a system that is helpful for communication between departments. It can share information conveniently within the company and collect information about the activities and status of different departments, so that other departments can effectively use this information.
ERP system can provide enterprises with a linked database about production, finance, distribution and human resources, and adopt different technologies in different parts of business, thus limiting the cost and incompatible technologies of enterprises. In this part, the system combines debt account, inventory, order checking and customer database.

How does the ERP system work
Over the years, ERP has developed from the traditional system model based on physical client server and cloud-based manual data input system, which is maintained by companies that build platforms and companies that lease services provided by platforms.
Service users choose the system to be used from service companies, install the system on the servers of service users and service companies, start collecting data of each department, connect the data of each department to the platform as a database, and then send all the data to the cloud. ERP system is available immediately and authorized for users to use. By reporting the results, various indicators can be generated, and service users can analyze the performance of business and different departments.

Advantages of ERP system
Companies adopting this system can plan business expansion, reduce costs and improve working methods, but for some reasons, they may have different views on the results.
Improvement of accuracy and productivity
Integrated business processes and automation help reduce duplication and improve accuracy and efficiency. In addition, entities with interrelated processes can work together to achieve faster and better results.

Improvement of the report
In some enterprises, the system benefits from the real-time results report processed by a single system. Accurate and comprehensive reports enable enterprises to comprehensively plan, budget, predict and convey business conditions to enterprises and shareholders.

performance optimization
ERP system enables enterprises to access the database quickly, remember the needs of customers, distributors and trading partners, greatly reduce the workload of employees, shorten the time of customers, and create the satisfaction of both parties through faster and more accurate response, thus effectively reducing the cost of the company.

Collaboration.
Departments can collaborate and share information more easily. New collaborative employees will improve productivity and employee satisfaction, because employees can better understand how each working group contributes to the company's mission and vision. In addition, some work and manual work can be reduced, so that employees can allocate their time to more meaningful work.
weakness
ERP system can't always eliminate the inefficiency or improve everything in the organization, and the company may have to re-examine its reorganization mode, otherwise it may face the risk of technology incompatibility.
ERP systems often fail to achieve their goals, because companies are unwilling to give up the old workflow. Some companies may be reluctant to give up old software that worked well in the past. It is important to prevent the ERP project from being split into smaller projects that may lead to excessive cost.

ERP solution provider
Some familiar names are the leaders of relational database software ERP provided by Oracle Bone Inscriptions Company. (ORCL) integrates with ERP software developed by SAP, and then enters a wider enterprise market in the early 21st century. Microsoft (MSFT) has long been a leader in this industry, and many customers use many of its software applications. Traditional ERP industry leaders have seen new challenges such as Bizowie and Workwise, because cloud-based solutions have become more and more popular in recent years.