what is an ERP system?
14 December, 2022
If you are a business owner, you most likely have financial and operational systems in place to help your enterprise run smoothly. However, while such software helps manage everyday business processes, they are not equipped to assist with future business growth. For expanding businesses and their growing needs, you need software that can keep up and give you the service you require. This is where Enterprise Resource Planning, or ERP, comes in.
What is ERP?
ERP refers to a type of software that can provide management assistance to your business in terms of procurement, accounting, risk management and compliance, supply chain management, etc. If you opt for a complete ERP suite, you can also benefit from help in areas like planning, budgeting, and getting a predicted report on your company's financial results.
Earlier, ERP systems were isolated suites that did not communicate with other systems. Additionally, they also required complex and customised code to meet varying business needs, which could be expensive. However, today's ERP systems are more fluid and bring in different processes. The newer system offers data connectivity within productivity tools, customer engagement, and e-commerce to give you better insights that allow for improved optimisation.
Why do you need ERP for your business?
The primary ways in which ERP systems can help you are:
Offers optimal performance: Solutions that integrate artificial intelligence (AI) allow you to access insights that can boost your decision making and show you ways to improve future operational performance.
Speeds up operational impact: When you connect data and processes through ERP, you can provide employees with increased visibility and flexibility. Thus, they can act quicker and add more value to the business.
Improves business agility: Various ERP systems are designed to adapt as per your business needs and grow with you. These systems can help you plan ahead and respond to disruptions in operations or market fluctuations.
While the ERP system is not foolproof, it is improving. With greater data, processes, and business connectivity, your business will benefit via the intelligence and adaptation required for increased optimisation.
What is ERP module?
Now that you know what ERP is and how it is beneficial for your business, you need to learn a bit about ERP modules. An ERP module is designed to help you carry out specific business functions, by providing data and supporting processes that enable employees to effectively do their jobs.
Each module can be plugged into the ERP system, to the system becomes a holistic data source, even if you continue to add new modules. To help you better understand, you can think of the ERP software as a toolbox and the modules are a screwdriver, pliers, wrench, and other tools that have their specific uses.
Which aspects of business are affected by ERP?
Key business functions affected by the various ERP modules available include:
Commerce: ERP systems can help solve some of the challenges faced by retailers. With ERP, your business can benefit from an omnichannel that unifies in-store, back office, and digital experiences. Customers will get to enjoy a personalised shopping experience with AI recommendations. Plus, employee productivity will be boosted.
Finance: ERP software can help you balance profit and compliance by offering AI-based insights and dashboards so you can get an overview of your finances. With ERP, you can access real-time information anytime and anywhere. It can also reduce the amount of information you need to manually enter by making daily tasks automated.
Human resources: With ERP, you can manage company data and make tasks like payroll, hiring, etc., streamlined. Along with keeping an eye on employee performance and preventing HR problems, ERP helps you retain, recruit, and empower employees more effectively.
Manufacturing: ERP, when applied to this function, helps with business communication and allows automation of daily processes. Managers can fulfil customer needs by taking a look at real-time data, and also enjoy optimised cost management and production planning.
Supply chain: In case your company is still managing data entry and inventory in an old school manner, you can save time and money by relying on ERP to automate these processes. ERP offers solutions like dashboards, business intelligence, etc., to help you out with inventory management.
ERP software can seamlessly integrate technology to push your business in the right direction. Now that you know what ERP software is and how the various modules can help you optimise different business functions, make sure you outfit your enterprise with the same. With ERP, the future of business is now, and you can be a part of it.
HDFC Bank is here for you
Running a business is no easy feat. It takes a lot of energy, effort, and commitment to keep operations on track. Plus, you also need smooth access to capital to ensure there are no hiccups in orders and delivers. HDFC Bank is here for you with loans, Letters of Credit, Bank Guarantee, and other financial tools that your MSME needs to function smoothly. Get in touch with us to know how we can help your business reach new heights.
To learn more about the various products and services at HDFC Bank that can benefit your enterprise, you can check out the MyBusiness page here.
Click here to read about the different types of ERP systems.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.
