What’s ERP all about?

What’s ERP all about?

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What’s ERP all about?

At CPiO, we talk to people every day about their business and how we can help. So after a while, we get to spot some general information that is worth knowing for people thinking about investing in new business software.

It’s probably good to start by saying what an ERP (Enterprise Resource Planning) system is. An ERP system replaces several different departmental business systems with one solution, which has different functional sections, but each section uses the same database.  Without an ERP system, different departments will be working from different versions of the truth; some having more up to date information than others and some may not have access to what they need at all.

  • With one solution, data does not have to be re-keyed into different systems thus errors are reduced, and staff are freed up for more important tasks.
  • With all company information being in one place, it’s easier for management to get an up to date picture of what’s happening, being able to spot potential problems before they occur, and spotting trends that could lead to business opportunities.
  • And with less administrative drudgery, staff are empowered to make changes and the business can transform from a business that is just keeping its head above water, to one that enters a period of planned and sustainable growth.

Another compelling reason for business data being held in a centralised system is to make sure business information and processes are all the property of the business. If key people have their own processes and data that they don’t share, there can be obvious problems if they leave.

Of course it’s not always plain sailing getting there, and the solution itself won’t fix underlying problems with the business. However, most companies use it as a great opportunity to re-think their business processes. A sort of spring clean for the business getting rid of what isn’t needed and making sure that what is needed, is in place; getting more benefit out of the process than just changing software. In my next blog, I’ll talk about getting the system in place.

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