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What is ERP? And it’s used in Business?

Hello! New Entrepreneurs, looking for information regarding ERP Software?  You’re in the right place. Today I am going to explain to you the ERP Software and their uses in the business. 

Whatever the size, the goal of every organization is the same – earning optimum profit by enhancing the functions and quality of the organization. Data are considered the lifeblood of the modern organization. There is a need for automated and optimized operation; this is possible only through the ERP Software. 

But a recent survey says that most of the small and medium-sized business are not aware of ERP Software and it uses. Luckily you don’t need to be one of them.  Follow this article to know more about ERP Software. 

 

What is ERP Software?

The word is an abbreviation of Enterprise Resource Planning. It is an automated software or system used to plan and process all the core functions of an Enterprise. It deals with every plan and regulated every function like production, Services, purchase, and sales. 

The Enterprise Resource Planning Software optimizes and simplifies the individual’s work in the organization. In this modern business world, everything is about Data. ERP Software collects the information from the various departments and interprets them and gives the core and detailed view of the Business Process. 

ERP software is developed by the Software-as-a-Service (SaaS) to help large business organizations. Though it is primarily focused on large organizations, it is mostly used by small organizations. As it reduces their labor costs and simplifies the functions of the organization.  

In Short, ERP Software is Business management software that aims to reduce cost and optimizing managerial decisions. 

How Does ERP Software Works?

THE modern ERP System works on real-time data collection. It collects information from different departments like raw materials, cast, payroll, production capacity, transport and storage cost, etc.. All these data about the organization’s resources are collected and updated on the cloud database. Note, there is some ERP software that stores the data in the company’s server or individual IP address. 

Can’t understand let me explain it with an example. Let’s say the purchasing department purchases a new lot of raw materials. Now all the details about the purchase are available to all the departments by cloud. When other departments prepare their reports these details are automatically inserted in them.  For instance, when the production department enters the code of raw materials they are using, all the details like cost, quality, quantity are updated in the form or report automatically. 

The above example is a ground-level one, ERP software helps organizations more than you imagine. THE modern ERP system analyses the data and even gives you suggestions regarding the decision you should take. ERP Manages the data flow both inside and outside the organization. 

Features of ERP Software 

Here are the common features of an ordinary ERP Software System

  • An Integrated system
  • Operates in real-time
  • A common database that supports all the applications
  • A consistent look and feel across modules
  • On-premise, cloud-hosted, or SaaS deployment, and more…

Uses or Advantages of ERP Software 

  • Flexibility- Today you can have a mobile ERP system and the SaaS companies are constantly improving them in a way to meet future trends
  • Streamlines company organizations and business processes
  • Profoundly present the data, by highlighting market trends, customer’s responses. 
  • Increases the competitiveness and ability to expand and reach the top position in Industry. 
  • Reduces costs by improving and/or removing the process of the organizations. 
  • A unified information system makes business operations faster and effective.

Some demerits of the ERP System are…

  • Prices – Though it comes at an affordable price, companies need to allocate a separate budget for the ERP system. 
  • Maintenance – as technologies develop the system needs to undergo constant update and maintenance. 
  • Training and Education – You need to train your employees to use the ERP system and they need to be continuously learning as the software updates from time to time. 

 

How ERP Qatar helps your business to grow?

ERP software helps each organization in different ways based on the nature of the business. Here are some common points.

  • It gives detailed business insight by real-time reports and helps you make the decision easily. 
  • It has higher user adoption rates from a common user experience and design. 
  • It enhances the internal co-operation of department and collaborate different data and share them. 
  • There is a low risk of error, fraud, theft, or any other malpractices as the data are integrated. It helps large financial organizations. 
  • Lower operation cost helps the business to expand further into the market.

So that’s it. I hope you will decide to get ERP Software for your business. Contact Us to Know More. 

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