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What is an ERP System? (Past, Present & Future)

What is an ERP system? Enterprise resource planning (ERP) software is used by organizations to manage front office and back office operations. An ERP solution integrates and automates organizations’ core business processes resulting in easier collaboration and improved customer satisfaction.

Today, we’re taking a closer look at how this platform works and outlining the benefits it can provide. 

What is an ERP System?

If you’ve reached the point in your company where spreadsheets no longer cut it, then you may be eyeing enterprise software systems that can automate and simplify your everyday processes. 

This is where ERP comes in. These systems collect and organize all your business information into one central database (if you have a cloud ERP system, employees can access this information from anywhere, at any time).

From small startups to established enterprises, many different types and sizes of companies can benefit from ERP software.  In fact, the functions of ERP go far beyond information management. For one, an ERP system automates many of your mission-critical workflows, allowing users to abandon manual methods that are not only time-consuming but leave too much room for human error. 

This automation is most effective when the system receives inputs from different functional areas, including:

  • Finance and accounting
  • Manufacturing
  • Procurement
  • Project management
  • Supply chain management
  • Customer relationship management
  • Risk management and compliance
  • Sales
  • Marketing
  • Human resources

Typically, each of these departments and functional areas relies on its own set of workflows and business processes. These processes can be difficult to integrate, especially with team members scattered in different locations and documents stored on disparate legacy systems. 

An ERP system ties all those people and processes together, enabling shared transactional data to flow more smoothly. This shared access means you have one source of truth, which ensures data integrity and eliminates the risk of error or duplication.