The Enterprise Resource Planning (ERP) software market is growing rapidly with a recent projection estimating that it will be worth $78.4 billion by the year 2026. That’s a huge industry. The growth appears to be driven by a need for greater efficiency and transparency within businesses, as well as a drive to move towards data-driven decision making. So what are ERP systems and how do they help companies to achieve this? Read on to find out more.
What is ERP?
Enterprise Resource Planning refers to a type of business software that aims to integrate the numerous processes within a business. So instead of having different systems for finance, human resources, manufacturing and so on – which are often not compatible with each other – a company has one centralized database that all departments can access.
There are now a whole host of ERP tools that companies can choose from to suit all industries and businesses. A website like Better Buys is a great place to start if you’re looking to compare what’s available and decide which software might be best for you and your company.
Why is ERP so popular?
These days collaboration is key. ERP helps to boost collaboration and communication within a company by enabling all departments to work from the same data set and see what each other are doing. Automation of daily tasks saves time and improves efficiency, ultimately saving businesses money and better meeting customer expectations.
Data-driven decision making
A big factor driving the success of ERP is its ability to help companies develop data-driven strategies. Using data-driven decision making essentially means that a business makes its decisions based on actual data rather than just observation or intuition. This can help to remove bias and false assumptions from the decision making process and is therefore widely accepted to lead to better decisions, which in turn have the potential to lead to increased efficiency, productivity and profit for the business.
However, data-driven decision making is only as good as the data it relies on. This is where Enterprise Resource Planning comes in. ERP improves the accuracy of a company’s data by cutting down on errors and redundancies, as well as departmental ‘silos’ that result from a lack of collaboration and communication. It also enables staff to have quick access to that data in real time. This is particularly important nowadays with the speed at which the modern commercial environment moves and changes.
The other great thing about ERP is that it improves access to, and analysis of, data by having customizable and user-friendly interfaces and dashboards. This means that staff from all different departments can use ERP tools with reasonably straightforward training and share their results with others.
Is ERP right for my company?
Enterprise Resource Planning can benefit pretty much any business. The initial cost can be large, in terms of both time and money, but whatever the size and industry of your company you’re almost guaranteed to see a return on your investment.