A Guide Or Introduction On ERP SoftwareAn ERP system is a centralized approach to handle the day-today activities of today's business environment. Cloud ERP providers often leverage infrastructure investments in security and controls in the platform on which their apps are built on, such as the Salesforce Platform In addition to this, cloud ERP vendors also add their own control processes, security and more by complying with industry-standard audits such as Service Organization Control 1 (SOC 1).
Among the more complex systems, the use of microcomputers, servers, operating systems, and application software support the Internet, Intranets, Extranets, local area networks (LANS) and wide area networks (WANS) to communicate and share data between departments and organizations.
Enterprise maintains the rock-solid accounting functions that made QuickBooks an industry leader while adding powerful tools to integrate payroll and payments, field service management, inventory and warehouse management and other systems related to your bottom line.
ERP implementation options include on premises, cloud and a mix of the two, called hybrid, such as with platform as a service and infrastructure as a service Although ERP has historically been associated with expensive, monolithic, end-to-end implementations, cloud versions now enable easier deployments, which SMBs are taking advantage of in greater numbers.
Of course, small and medium-sized companies—as well as those involved in service rather than manufacturing industries—have different resources, infrastructure, and needs than the large industrial corporations who provided the original market for ERP systems.
Many business owners are familiar with ERP software such as the Microsoft Dynamics family of platforms, Sage, SAP, and Exact, but there are a multitude of other, lesser known options that might prove to be better suited to your industry, or are more geared towards the functionality you're seeking.
This concept is similar to the so-called best-of-breed approach 65 to software execution, but it shouldn't be confused with it. While in both cases, applications that make up the whole are relatively loosely connected and quite easily interchangeable, in the case of the latter there is no ERP solution whatsoever.
An ERP system provides business intelligence tools such as executive information systems, decision support systems, easy warning systems, data mining and reporting to enable people to improve decision making, resulting in overall enhancement of business processes.
Storing all of a company's data in a single, relational database makes it possible to write queries and generate reports that give business leaders a sense of how the company is doing and where they can make business process improvements to save money and increase profits.
For example, the inventory for a manufacturing company might require component tracking using bar codes to identify parts bins as well as Bill of Materials Processing (BOMP) that provides a list of all the parts and subassemblies needed to construct a particular product, or even Kitting, which consists of inventorying and tracking subassemblies rather than discrete parts.
Training takes place shortly after the implementation process, which walks users through the software, showing them how to both understand and use it. Software training, also an additional cost, helps users understand the ins and outs of the software that will be a part of users daily work life.
The term ERP, therefore, can apply to a single microcomputer using an accounting package (Quick Books for example) to track sales, inventory, billing and accounting, to more complex ERP systems that erp solutions automate business processes across the supply chain from manufacturing, distribution, retail, service and, ultimately, the customer, who may be either downstream or upstream in the supply chain.