Benefits of ERP-In the corporate world, it’s easy to succumb to using buzzwords when dealing with complex topics.
It’s understandable in the sense that these terms can help get complex ideas across without confusing people. At its worst, however, it can turn conversations, meetings and ideas into word soup.
Granted, ERP doesn’t exactly fall into this category, but it does suffer some of the problems mentioned above, according to Mark McArdle, group sales director of Intact Software.
“The term ERP has evolved into an industry term that isn’t overly understood by many businesses,” he said. “We do a lot of work on what words we should be paying for on pay-per-click searches and the term ERP is not something that’s searched for very much. Business software is the more apt term for it.”
When you think of what it stands for – enterprise resource planning – people don’t use it for planning; they use it for reporting and for accounting or stock control, but not resource planning.
Part of the problem is that if businesses don’t understand what ERP is, many of the benefits it can bring can be missed. For those companies growing in size, it’s a significant step up from using the standard Excel spreadsheets or accounting software.
Also, since it’s an enterprise-wide system, all of the information is centralised instead of being placed in silos that don’t necessarily interact with each other.
“One of the benefits of a company having an ERP or business software system is that they’re ready to embrace different opportunities for improvement to their business,” said McArdle. “Having an ERP system which is an enterprise-wide system, you see a lot of the Excel sheets disappearing and the information coming from the ERP systems.
“That would be the main benefit. They’re not dealing with spreadsheets; by their nature, if there’s one change in the formula, you’ve lost or might be getting wrong information, whereas ERP systems tend to be more reliable in terms of the databases.”
Another advantage they can bring is accessibility. If you have salespeople on the road and they take orders, an ERP system can allow them to carry out and process sales directly, allowing it to feed back into the system.
“The real advantage of having an ERP system is that you’re ready to embrace every technology opportunity going,” said McArdle.