5 Characteristics Of A Good ERP System

characteristics good erp system successful enterprise resource planning

Perhaps now more than ever, businesses are understanding the need for efficiency, improved productivity, and the importance of cost-saving. 

The pandemic saw the end of many businesses around the world. The ones that survived did so because they were able to weather the storm, but many did so by the skin of their teeth. 

Now, as things start to return to some level of normality, many businesses are assessing their work practices, and how they progress in the future. 

Enterprise resource planning software will become more important to the future of business post-pandemic. But, like everything, there are good and bad ERPs. 

What are some of the main characteristics that make a good ERP? 

What Is An ERP? 

ERP is the abbreviation for enterprise resource planning, which is the name given to any integrated business management system. This can often be a group or suite of different applications that work seamlessly together to cover all areas of the business. 

An ERP controls and manages all the different departments and facets of a business. This means that there is one system that links together all the other applications to gather data, monitor, and help to improve productivity. 

A good enterprise planning resource system would integrate all the different areas of a business in real-time, including production, inventory, human resources, and shipping. 

What Makes A Good ERP? 

There are many different types of software on the market for ERP systems, and it can be difficult to make the right choice. 

When it comes to having a well-integrated ERP system in your business, it may depend on how it is chosen as much as what is installed. 

A good ERP system should give 24/7 real-time access to all facets of a business, but different industries will require their own approach. This is where an ERP Consultant could help. 

To ensure the most efficient system is integrated into your business, you would need to employ an ERP Consultant to discuss your needs and how you see your business’s future. 

However, regardless of all the help that an ERP Consultant can give you, there are still some characteristics that every enterprise planning resource system should have. 

1. They Have The Option Of Being Cloud-Based 

One characteristic of an ERP that you may see as good is the option to have cloud-based solutions. 

Cloud-based ERPs can reduce costs, which is one of the purposes of these systems, by removing the need for servers. 

An on-premises ERP requires its own server space and the purchase of software. ERPs can be expensive to purchase and install, but a cloud-based system works differently. Largely they run on a subscription type basis, which means less financial outlay. 

2. They Should Save You Money 

Choosing the right ERP for your business should mean that you do not suffer from any unnecessary costs. 

Businesses that are running successfully will often look at ways to expand, and a good ERP should help this to happen without the need to invest more in IT or even staff levels. 

3. They Should Be Fully Integrated 

Many off-the-shelf software packages promise that they will work with your existing system, but an effective ERP goes one better. 

One characteristic of a good ERP is that the system is made up of a suite of applications that are designed to integrate together seamlessly. They should consist of a group of applications that are designed for all areas of the business including warehouse management, accounting, sales, and purchasing. 

4. They Improve Productivity 

Knowing how to improve your business’s efficiency should be a prime concern, and an ERP should be able to help with this. 

Another characteristic of a good ERP should be its ability to improve reporting and data analysis. This should then lead to a more efficient and productive business. 

ERPs can help work environments become much more data-driven as they provide accurate reporting and improve workflows. 

5. They Add Automation To A Business 

Perhaps one of the most important characteristics of a good ERP is the way they help to automate mundane tasks. 

Humans make errors, especially when carrying out boring and seemingly tedious duties. These tasks also take up time. ERPs are capable of automating many different tasks including payroll, invoicing, and sending late payment letters. 

Automating tasks also helps in some of the other areas above, including cost-saving and productivity. 

ERP System Success Summary 

A good ERP can enhance a business and deliver all data and reporting to one area. Expanding a business often means recruiting new staff or expanding the IT section. 

However, installing an enterprise resource planning system can help to create an efficient IT department without any expansion or extra cost. 

A good ERP will improve productivity and make work practices more efficient through automation, reporting, and data analysis. A good ERP will have all these characteristics, and more.

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