Three Advantages of Enterprise Resource Planning (ERP) Software
05/26/15 | 8:00AM | Posted by TEAM Software
Imagine how your body would work if your brain did not have real-time information regarding all its different parts. Your brain takes all the signals and uses them to control your body in an efficient, cohesive manner. Enterprise Resource Planning (ERP) software can be thought of in the same way – as the brain for your business.
An ERP enables companies to replace disparate departmental systems and databases with a single integrated database for all key functions. By using a common platform companies can integrate departmental activities and achieve a variety of cost, operational and informational benefits.
Real-Time Shared information
A key benefit of ERP software is the availability of “actionable” business information delivered to the right resource, in real-time or near real-time. Many companies operate in information “silos” – these are barriers that stand in the way of full cooperation between Sales, Operations, Finance and Accounting. The process of compiling and sharing information is slow; it can take days to weeks and is then after the fact and not as useful. Having shared information enables better decision-making by the company resource accountable for the results. Key management has an overall view of business operations and financial reporting to make effective decisions on changing business opportunities.
Common Business Language Resulting in Process Improvement
A single database and software system allows your company to create a common business language across the multiple disciplines. With everyone in one system, no longer should there be a “throw it over the wall – this is not my job” mentality. Instead, each department understands its role in the entire process and how it affects other departments. This understanding across and among departments allows for process improvement opportunities. By reducing duplication and streamlining processes, ERP systems free staff to focus time on value-added tasks, thereby making a greater contribution to efficiency and profitability.
Having disparate systems for each function requires data entry into each system. For example: you may have to enter an employee into a payroll system, a scheduling system and a human resource system. This costs valuable time across multiple disciplines within your organization. This can also lead to data entry errors causing the need for reconciliation across the systems. In a single integrated database like an ERP, all the employee information can be entered and maintained in one place while being shared by all who need access.
Achieving these benefits takes leadership commitment, employee engagement and a focus on processes. A successful transition to an integrated single database helps companies set the future for growth.
Like an ERP system, WinTeam, TEAM’s core financial, operations and workforce management solution, features a single integrated database. Watch the video below to find out how WinTeam can become the “brain” for your business.