The term ERP software is frequently used in companies. Many people even consider it to be the central tool of the Information System (IS). But what is it really about?
ERP software: definition
ERP stands for Enterprise Resource Planning or enterprise resource planning system. It’s an IT system capable of managing and tracking in real time all the information linked to a company’s main business processes, such as sales management, invoicing, inventory management, tracking of each accounting entry, or resource planning, for example.
An ERP system is therefore a management software package used by all departments to standardize the company’s existing management solutions. The main features of an ERP system are :
- A modular approach
- Communication between the various modules
- A single database
Other software applications can be added to an ERP solution, either because the ERP lacks functional coverage, or because a module has not been deployed. This is the case for some companies with the addition of a CRM (Customer Relationship Management), a TMS (Treasury Management System) solution, or Business Intelligence tools, for example.
To find out more about the benefits of an ERP solution for the finance function, we invite you to read our article on the subject.
What are the main advantages of ERP software ?
For company managers, an ERP offers a global view of activities, easily accessible thanks to pre-configured dashboards. Such a tool inevitably helps to improve company management and strategic decision-making.
The single, centralized database guarantees the uniqueness, integrity and reliability of the information used by all departments, from human resources to finance. Documents are also accessible to all (within the limits of the access rights granted) and in real time.
ERP management software also has a major impact on a company’s overall productivity. It facilitates the flow of information, the automation of workflows, the rationalization of business processes and the exchange of data between departments. Overall, an ERP system contributes to optimized resource planning and better integrated company management.
Find out how to optimize your administrative processes with an ERP solution to maximize your organization’s efficiency.
The limits of management software packages
Despite its indisputable advantages, ERP is not the answer to every business problem. Implementing an ERP system can represent a major human and financial investment, particularly for small and medium-sized businesses. It is therefore essential to measure this investment before embarking on such a project, and not to neglect this pre-framing phase.
An ERP project can therefore be a long-term project, depending on the number of modules to be deployed and the size of the organization. It’s a global project that needs to mobilize a large part of the teams, beyond the IT teams. Regular updates also require constant monitoring and maintenance.
Contrary to what some company directors may have believed, an ERP system cannot be used to revive a sluggish business or reorganize an inefficient organization, for example. So, before embarking on an ERP project, it’s vital to have a clear vision of your company’s human and financial resources, and to choose the right people to support you in this process.
To better understand the issues involved in implementing an ERP system, we recommend our article on the different phases of ERP project implementation.
Before embarking on an ERP project, it’s essential to know which ERP to choose for your company, and to understand who needs to be involved in an ERP finance project to maximize your chances of success.
CFO and CIO: how to make a success of your Finance ERP project?
Get all the keys you need to successfully implement your ERP Finance project in complete security and involve the right stakeholders in your company. Boost your finance function with a high-performance ERP!
Also in our "ERP Finance" section
- ERP software definition: what is an ERP?
- What is the use of an ERP solution for the finance function?
- ERP finance: what do you need to know as a finance manager?
- CFO: what are the advantages of an ERP for the finance function?
- Finance software: which ERP to choose for your company?
- The challenges of a post modern ERP
- Optimize the management of administrative processes with an ERP solution
- Big data, data management, data analytics and ERP: what are we talking about?
- ERP finance: how to ensure data security?
- CFO and CIO: how to implement a successful finance ERP project?
- ERP finance project: who should be involved in the company?
- The different implementation phases of an ERP project
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