This also makes it difficult to see the full cause and effect of developments affecting your business.Īn ERP system solves this problem by compiling information in a central database to grant managers and employees cross-departmental visibility. Staff waste time hunting for documents and potentially duplicating work because there is no one place to look for up-to-date information on all aspects of the business relevant to them. These disparate data sources make it very challenging to keep everyone on the same page and hinders collaboration and efficiency, especially as an organization grows. For example, the accounting and FP&A teams could each have different spreadsheets with different figures for expense tracking. Whether data is held in basic business management software or spreadsheets, employees have a hard time finding what they need and may lack access to it entirely. But that’s a struggle when the information needed to execute processes and make key decisions is spread across disconnected systems. What Is Enterprise Resource Planning (ERP)?Īt its core, an ERP is an application that automates business processes, and provides insights and internal controls, drawing on a central database that collects inputs from departments including accounting, manufacturing, supply chain management, sales, marketing and human resources (HR).Įvery business must complete work that requires numerous stakeholders with various responsibilities. Read on for answers to just about any questions you might have about enterprise resource planning.
We’ll explain exactly what ERP is, how it works, what it can do for your business, how to choose the right solution and much more. Most business professionals have heard the term “ERP,” but they may not know exactly what enterprise resource planning systems can do for their teams. That’s where enterprise resource planning software comes in: ERP systems collect and organize key business information and help organizations run lean, efficient operations, even as they expand. Growing companies eventually reach a point where spreadsheets no longer cut it.