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blog | March 23, 2020

How Does ERP Work?

ERP Software works across all functions of a business to collect, store, manage, and communicate data. No matter the size of your business, or the industry that it is...

By Courtney Perry

ERP Software works across all functions of a business to collect, store, manage, and communicate data. No matter the size of your business, or the industry that it is in, you may have heard of ERP software or even better, you’re already familiar with it!

ERP is vast in its abilities to integrate day-to-day business and there are a wide range of ERP solutions to choose from. Which means there is a high chance of finding a ERP solution that fits your exact, individual needs as a business.

Putting emphasis on how expansive ERP can be, there’s a chance of feeling a bit intimidated when learning how to use ERP for the benefit of your own business. We’re here to take away the fear of the unknown and make enterprise resource planning easy to understand.

Before we begin on how ERP works, let’s do a brief overview on what ERP is.

What is an ERP System and Why Is It Used in a Company?

While ERP is what it is most commonly referred to as, the acronym stands for Enterprise Resource Planning software.

ERP software is a business management solution that businesses and manufacturers use to collect, store, manage and communicate data across all functions of a business. Users interact with the software via visually-collaborate dashboards.

ERP software integrates information from all areas of a business into one complete system so data can be shared in real-time across all departments in order to streamline processes and automate common tasks.

The solution creates and manages a database of business processes including:

How to Use ERP Software?

Now that we know exactly what ERP is and what it can do, let’s get to the part that some many find complicated: how to use your ERP software!

1. Deployment type

There are different ways in which ERP software can be installed with the most common forms bring on-premise and in the cloud. On-premise ERP is stored and implemented in your place of business via an internal network while cloud deployment can be accessed on the internet and hosts data in the cloud. It’s important to chose what is best for your business and every ERP user that you plan to include.

2. Customization

Most ERP solutions offer different suites and applications that can be implemented into your ERP software. Think about what your business needs. Most businesses need assistance with, finances, production. customer service and analytics to name a few. It is important to make sure that your chosen ERP solution features suites and applications that your business needs most.

3. Implementation

This step can vary depending on the amount of time it takes. You may also receive training from your ERP carrier, who will help make the transition easier and will assist in make the software easy to understand and navigate.

4. Migrate Information

Once you’ve chosen the type of ERP software that works best for you and it has been implemented, migrating company information into the system is next.

5. Begin Use

The final step is to use your ERP software!

ERP places all of your business information into one central space so that members across departments are able to access and use the information when needed. Any information placed into the system updates in real time, which eliminates the possibility of passing around inaccurate data.

Benefits of Using ERP

There are noticeable positives that come with daily use of ERP software including:

ERP software integrates all facets of day-to-day business activities and processes. Because it’s so versatile and expansive, ERP software can be tailored to your business’ individual needs. This software aims to make running your business easier both in the daily functions and in the long term.

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