And why do you need it?
Suite in a Box
ERP stands for enterprise resource planning. But what does it mean? The best way to understand ERP is to think about the core processes that run a business: Finance, Procurement, Marketing, Sales, HR, Manufacturing, Services, and more.
ERP systems have been empowered by the latest technologies, like artificial intelligence and machine learning to provide intelligent automation, improved efficiency, and instant insight across the business - all done on the cloud.
At the most basic overview, ERP helps manage all these profiles in an integrated system. However the ERP landscape today is a lot more complex than it was decades ago.
Today’s ERP software also vastly improves connectivity between internal operations and partners and networks around the world, giving businesses collaboration, agility, and speed to help them stay competitive.
ERP is a software system that helps you run your business, and is made up
of processes in:
ERP is often described as the enterprise's “central nervous system”. It provides automation, integration, and intelligence, to run all the day-to-day operations of the business. Most of the organisation’s transactional data resides in the ERP system, giving the business a single source of information.
“The global enterprise resource planning (ERP) software market is forecast to grow to around 100.7 billion U.S. dollars by 2025.” (Statista)Different parts of the business benefit differently from having an ERP.
ERP systems are made up of integrated modules that talk to each other and share one database. ERP modules focus on a single business area but work together using the same data to meet the company needs. The core business functions like Finance, Accounting, Procurement, HR, Sales, Logistics, and Supply Chain make up the popular modules. Organisations are able to choose which modules they require and can add on and scale when they want.For example, a company may only require Finance, Procurement, and Sales - but not yet have a need for Marketing or Logistics.
ERP software also supports industry-specific requirements as part of its core functionality or application extensions that integrate with the solution. ERP systems can be purchased using a cloud subscription model known as software-as-a-service (SaaS). Alternatively, they can be bought on a licensing model
ERP software can include a variety of different modules. Each module supports specific business processes – like finance, supply chain, or HR– and provides employees in that department with the transactions and information
they need do their jobs.
Every module connects to the ERP system, delivering a single source of truth and accurate, shared data across departments.
CCH Tagetik is a fully integrated Financial & Enterprise Performance Management platform. Its innovative technology leverages your existing investments.
Procurement and Sourcing
Procurement modules help businesses source the materials and services required to manufacture their products to sell. It centralises and automates purchasing requests, quotes, and more, as well as creating contracts and approvals. It’s great because it can prevent underbuying and overbuying, improve supplier negotiations, and connect with buyer networks
Human Resources Management
ERP systems also often include an HR module that manages time, attendance, and payroll. You can even build add-ons to deliver more robust HR functionality - from workforce analytics to employee experience management.
The finance module is the core of most ERP software. It manages the general ledger and automates key financial tasks. It also helps finance teams track accounts payable and receivable, close the books quickly and efficiently, generate financial reports, comply with revenue recognition standards, mitigate risk, and more.
Manufacturing modules are some of the most popular ERP features. It helps companies simplify manufacturing processes and stay on top of demand. This typically includes functionality for material requirements planning, production scheduling, manufacturing execution, quality management and more.
Logistics and Supply Chain Management
The supply chain module tracks the movements of goods and supplies throughout the organisation’s supply chain. You get real-time inventory management, warehouse operations, transportation and logistics, and can improve visibility and supply chain resilience.
In an ERP, service modules help companies deliver reliable service to customers. These can include tools for in-house repairs, spare parts, field service management, and service-based revenue streams. It also comes with analytics to help service reps and technicians rapidly solve customer issues and improve loyalty.
The ERP systems of today integrate with other applications and data sources,
such as HCM, ecommerce, CRM, and also other ERPs. ERP integration gives companies a unified view of information from different systems,
increase efficiency, customer experience, and collaboration across teams and partners.
Modern ERP systems are a lot more open and flexible than they were decades ago,
and can easily integrate with a wide range of software's using connectors or
customized adaptors. These might include APIs (Application Programming
Interfaces), ESBs (Enterprise Service Buses), or iPaas (integration platform-as-a
-service-). iPaaS as you can guess is a cloud based approach and popular for modern businesses.
It syncs ERPs with other SaaS solutions. It requires very little coding, is flexible, and
inexpensive. There a range of benefits to iPaas, such as automatic API generation, ML data.
integration, IoT (Internet of things) network integration, prebuilt content, and more.
Streamline and automate your core business
processes to help everyone in your organization
do more with less.
Eliminate data silos, gain a single source of truth, and get fast answers to mission-critical business questions.
Fast-track business, financial, and management reporting and easily share results. Act on real-time insights and improve performance.
Maximise business visibility and control, ensure compliance with regulatory requirements, and predict and prevent risk.
By using integrated ERP applications that share a database, you can simplify IT and give everyone an easier way to work.
With efficient operations and ready access to real-time data, you can quickly identify and react to new opportunities.
Modern ERP systems can be deployed in a public or private cloud, on premise, or in various hybrid scenarios that combine environments.
Here are some of the high-level benefits of each to help you identify the ERP deployment option that makes the most sense for your business.
CCH Tagetik is a fully integrated Financial & Enterprise Performance Management platform. Its innovative technology leverages your existing investments in databases, applications, and other technologies, seamlessly fitting into any business or IT environment to provide you with robust financial solutions by technology.
ERP can be delivered on the cloud, which means the software is hosted in the cloud and delivered over the Internet as a service that you subscribe to.
The responsibility of regular maintenance, updates, and security belongs with the software vendor, freeing you time and effort. Today, the cloud is the most popular deployment method for many reasons – including lower upfront costs, greater scalability and agility, easier integration, and much more.
An example of Cloud ERP would be SAP Business ByDesign.
On-premise is the traditional model for deploying your ERP where it is installed in your data centre at your business site. You and your staff are responsible for maintenance, updates, and security.
Many businesses are modernising and upgrading their on-premise ERP systems to the cloud. This requires careful planning of the ERP upgrade and thoughtful process of evaluating ERP software and deployment options.
For organisations that want both, they can opt for the hybrid cloud ERP model. This is where some of your ERP applications and data will be in the cloud and some on-premise.
The cost of ERP depends on the software vendor, the modules selected, and the deployment method.
Generally speaking, cloud ERP costs less than on-premise ERP because you don’t need to spend money on the physical equipment or the in-house IT team to maintain it. Instead, the software vendor handles maintenance, updates, and more, charging the customer an annual or monthly subscription fee, typically based on the number of users.
When calculating return on investment and cost of ownership of a new ERP, the workforce costs are just as important as the software you choose and the cost to implement it. Going on the cloud or going hybrid means that new factors need to be considered. Things like maintenance, downtime, recovery, privacy, IT costs, are all important considerations.
Going on the cloud reduces capital and operating costs, improving ROI and TCO.
In the short span of the 21st century, new tools and faster internet speeds have revolutionised ERP. The introduction of browser-based software paved the way for cloud transformation, a breakthrough that has expanded both the reach and the functionality of ERP solutions.
We are living in an era of digital transformation. Modern ERP systems are being empowered by new technologies like:
Robotic Process Automation (RPA)
Internet of Things (IoT)
Natural Language Processing (NLP)
With these developments, businesses can now use ERP to run even more efficient processes, get real-time insights from transactional and unstructured data, and competitive in a time of rapid change.
Digital transformation is accelerating and ERP is at the centre. As enterprises digitise every part of the business, they are fundamentally changing the way they operate. Businesses are striving to remove negative forces that slows them down, including outdated processes and systems. As a result, they are demanding more robust and intelligent ERPs. What does the future hold for ERP?
Preference for cloud ERP will continue to intensify as more and more companies discover the benefits – including “anywhere” access, reduced cost of hardware and technical support, greater security, and integration with other systems, to name just a few. This has accelerated as a result of the pandemic and the rapid uptake of remote work.
Companies will demand the best of both worlds – a fully integrated ERP system with vertical extensions. This allows companies to get the specific functionality they need, without painful integration issues or data locked in information silos. We also see the shift toward ever greater flexibility, as business processes are tailored to individual company needs.
Staff, customers, and suppliers all need specific content and functionality. The changing demographics of the workforce, especially in industries like manufacturing, are also driving interest in straightforward no-code platforms. Users benefit by getting the experience they want, customised dashboards, personalised chat and workflows.
CCH Tagetik is a fully integrated Financial & Enterprise Performance Management platform. Its innovative technology leverages your existing investments in databases, applications, and other technologies.
ERP isn’t just for large and global enterprises. ERP solutions are designed for businesses of all sizes, whether you’re a small business, medium-sized, or a large enterprise.
You can also get industry specific functionality to suit your unique business needs. Regardless of your size or your needs, you’ll need to follow best practices of ERP deployment.
ERP software for small businesses can help you move beyond spreadsheets and improve efficiency in every part of your business. Small business ERP tools are typically in the cloud, deploy rapidly, and built for scale.
ERP software for mid-sized businesses can your company to the next level with analytics, fast deployment, and best practices for all your core business processes. Cloud based modular ERP systems like SAP Business ByDesign are a popular and optimal choice for midmarket companies with complex processes or ambitious growth plans.
Large companies with global or subsidiary operations need a robust, market leading ERP with embedded AI, machine learning, and analytics – and intelligent automation to transform business models and
Contact us now and speak to one of our experienced consultants about how youy could transform your business.