The adage, “The whole is greater than the sum of its parts” isn’t exactly as Aristotle first penned it. The original expression has changed over time and become applicable a great deal more than metaphysics. When thinking about modern business management systems, for example, it describes ERP software very well. But let’s start with a question you may already be wondering, “What is an ERP system?”.
To the actual ERP meaning: ERP stands for Enterprise Resource Planning, and it’s a business term that’s not incredibly descriptive. In short, ERP means a single software application that manages all core functions of a company and its operations. When used effectively, it also helps companies become much more than the sum of its parts.
When you think of business software, many different applications spring to mind. It might be the email software you use, spreadsheets, word documents, sales tracking or even accounting packages. All businesses rely on software in one form or another. Software helps companies keep records of customer details, communicate, track stock, manage finances, and more.
When you run your business on one software platform, you start to gain significant benefits. Some of those benefits wouldn’t be possible using multiple systems; such as single-source data.
Some software packages are created for a specific purpose. Inventory management software, for example, maintains inventory. CRM (Customer Relationship Management) software records customer details and interactions. Accounting software manages financial records and transactions. You get the idea. An ERP system, on the other hand, brings it all together into a unified system.
Back to that expression, “The whole is greater than the sum of its parts”. When you run your business on one software platform, you start to gain significant benefits. Some of those benefits wouldn’t be possible using multiple systems; such as single-source data. An ERP system holds all your critical data, all in one place. There’s no double-handling of information and no tedious rekeying between systems. That also means there’s no room for manual errors. You can trust your data.
ERP software also empowers you to make better business decisions. Reporting and business intelligence all happens in one place and references accurate, single-source data. You don’t have to wait for days while reports are manually compiled and cross-referenced. You can simply refresh reports – all within the one system – to see live, up-to-date information. Making timely, agile decisions becomes the new standard. Many cloud-based ERP systems also come pre-configured with powerful dashboards, delivering helpful trend graphs, report snapshots, KPI meters, and more. Valuable insights into business operations, finance, product demand, etc, all become available at a glance.
An ERP system can reduce manual errors, provide trustworthy, single-source data, improve operations, and help you make better business decisions. When all these things come together, optimising cash flow and becoming a more profitable business becomes the new standard.
It’s not just about data though. A system that brings operations together also delivers compelling efficiencies. You can start to automate low-value, time-consuming tasks across the business. Best-practice processes open up better, more efficient ways of managing operations. Pre-defined triggers can help you communicate with customers, manage stock, and control finances faster – and with less manual effort.
What does it all mean for your business? An ERP system lets companies reduce manual errors, gain real-time insights to improve operations, and make more strategic business decisions. When it all comes together, optimising cash flow and becoming a more profitable business becomes the new standard.
What is an ERP system? It’s a way to help businesses become much more than the sum of their parts, and also the perfect platform to support long-term business success.
Learn more about ERP: https://dwr.com.au/
If you’d like to know more about how an ERP solution can help your business improve financial planning and forecasting, do more with fewer resources, and gain a competitive advantage, shoot me an email. One of my clients is a local team of award-winning cloud ERP experts who take a considered, personalised approach to ERP implementation.