ERP-system in modern business – a whim or a necessity? In this article, we will consider the main aspects of the company’s work, which may be affected by the implementation of such a system; and discuss the functionality of Connected Business.
What is an ERP system and why is it needed?
Over time, each system evolves, small businesses grow into large ones, and new needs emerge. The company is expanding, so it is necessary to automate processes to ensure an efficient process of managing enterprise resources. These problems are solved by the Enterprise Resource Planning System (ERP) that is a corporate information system (CIS), designed to automate accounting and enterprise management. All ERP systems are built on a modular principle, which allows you to create only the functionality that is required for particular department enterprises.
These integrated solutions improve the quality of decision-making, productivity, and profitability. ERP systems allow you to effectively plan the commercial and production activities of the enterprise. Features of application of modern ERP-systems include:
- automation of various methods of planning and management of business processes from the system of orders to mass production with the possibility of their rational combination and adjustment to the specifics of a particular enterprise; integrated use of subsystems of accounting, analysis, and planning of sales, production, supply, and financing;
- implementation of modern budgeting technology and ensuring the dynamic coordination of the necessary resources across the spectrum of business processes based on management cost accounting;
- planning and management of orders and projects, taking into account possible risks due to some changes or resource constraints of the enterprise.
Besides, the development and implementation of an ERP system is quite expensive, so it can be allowed
only entrepreneurs of medium and high level of business.
A typical ERP system includes the following subsystems:
- supply and marketing;
- inventory management;
- after-sales service of manufactured products;
- research and development;
The benefits of implementing ERP systems are
- reducing costs by increasing productivity;
- reducing the time of the entry of goods and services into the market;
- reducing the number of production operations;
- increasing management awareness;
- improving the quality of forecasting and planning;
- formalization of business processes of the company;
The best ERP platforms review
- System21 – a system that widely uses ERP and SCM. For 20 years, System21 has been operating in more than 2,000 companies worldwide and is a leader among ERP systems based on the iSeries platform (AS / 400) in the medium business segment.
- Microsoft Dynamics AX is an ERP solution for medium and large companies, which helps to expand their capabilities and gain new competitive advantages.
- Microsoft Axapta covers all areas of business, including production and distribution, supply chain and project management, financial management and business analysis tools, customer relationship management, and personnel management.
- Connected Business has the following advantages: it is a system that allows you to do business exactly as the customer sees fit; improves interaction with customers, business partners, and employees; provides powerful, comprehensive functionality in a single integrated system; provides opportunities for rapid business growth and development.
- Microsoft XAL is an integrated automated system with a universal set of functions for managing the financial and economic activities of medium and large businesses.