Breaking Down ERP Systems and Why Your Business Needs It

The success of a business largely lies in its orderly and efficient organization. Establishing a seamless business process, however, is not an easy challenge. Running a business can be complicated and burdensome. For this reason, small and big companies alike are always on the hunt for strategy and tools that can improve their business operations. Technology answered this necessity by coming up with enterprise resource planning (ERP) systems.


What is an ERP platform?

An ERP platform is a software specially designed to hasten and improve a company’s day-to-day operations. This business solution performs tasks that include human resources administration, accounting processes and project management. It can also handle inventory flow, data gathering and customer management. An ERP system aims to automate and simplify various tasks for an entire organization. Once fully implemented, the ERP software can unify all core business functions into a single, reliable system. This results in faster transactions, fewer errors and increased productivity. All of the benefits this business software provides ultimately leads to growth and development.  


Two ERP Systems: Cloud-based and On-premise

Although it represents a modern way to conduct a business, ERP systems are not a new concept. Many companies have been using them since the 1990s. However, during the early days of ERP, vendors only offered on-premise software. This means the software was installed onto the company’s own servers. Now, businesses have another ERP option: cloud-based systems. Cloud-based ERP software is installed onto the vendor’s server so clients of the ERP vendor simply access the system online.


Does your business need an ERP platform?

An ERP system can bring many benefits to your business; but purchasing an ERP package is a major investment that can disrupt your entire company. It is understandable that decision-makers will have questions about the software and why the organization needs it. A typical dilemma includes choosing the best ERP software to buy and finding the best vendor available. They may wonder whether a cloud-based or on-premise ERP is the better option. Another important question is if all businesses need an ERP software package.


Do startups need an ERP software?

One misconception is that only large, established companies need an ERP system. Many also assume that business processes in startups are easily manageable without the help of additional software. However,  ERP software exists to help run businesses of all types and sizes. Even small businesses can benefit from them. Implementation of an ERP solution may not be the most urgent need for a startup, but listing it as a future goal is a wise move. Most startups don’t intend to remain small forever. Small businesses are meant to expand in time, so while growing your business, it’s a good idea to start looking for possible ERP software options your business may need in the future.


Which industries benefit most from an ERP system?

Aside from the size of an organization, industry type is another concern for ERP implementation. Typically an ERP solution can easily be adjusted to fit a company’s unique structure and needs.  A recent survey shows which industries use ERP systems the most. The top ERP buyer is in the manufacturing industry. It is then followed by the distribution and services industry. Other industries include retail, utilities, government and healthcare. This study implies that those industries are the ones who will benefit from ERP the most. However, ERP platforms are a valuable solution for all businesses regardless of industry.


Are you on the lookout for an ERP vendor that can design a system that fits the needs of your organization? Learn about the best options available by contacting Birch River Design Group. Our team is driven by the goal of providing business solutions that positively impact our clients. Request a meeting with us today!

Written by Susie Eddins
Published on March 1, 2019