ERP, or Enterprise Resource Planning, is well-known to much of the accounting and finance community, but not to all. So, in this instalment of the MasterMind series, I will be explaining what it is and what it can do for you.
If you already know about ERP and want to find your next solution for that process, click the button below and surf the CFO Tech 100, our digital portal of vendors and consultants.
What is ERP?
ERP is short for Enterprise Resource Planning, as mentioned above. Here is a definition, laid out plain and simple:
Enterprise Resource Planning (ERP)
A type of integrated management for main business resources, often in real time and performed by software.
ERP systems typically include the following features:
- An integrated system
- Real time operation
- A common database
- A consistent appearance across its modules
ERP systems can be deployed in various ways. For example, there could be on-premises deployment, cloud deployment or software as a service (SaaS) deployment.
For a little more depth, here is a great video from Arcus Universe explaining Enterprise Resource Planning:
Who uses ERP systems?
Originally, ERP systems were designed mainly for larger systems, but now smaller organisations are using them more and more.
Have you heard of the Year 2000 problem? Also known as the Y2K error or the Millennium bug?
Well, many computers were potentially unable to store or format data relating to the calendar in and after the year 2000, due to programs that only represented the year with the final two of the four digits.
Why am I bringing this up? The Year 2000 problem was the reason for many to upgrade to ERP systems in the 1990s, which is when the growth of ERP really boomed.
Why do organisations use ERP systems?
In terms of why, it is a valuable tool to integrate all processes across a company, offering a single source of information with real time reporting – but only if it is implemented correctly.
Oracle lists these as the processes it is often used to manage:
- Project management
- Risk management and compliance
- Supply chain operations
So, if an organisation wants to benefit from centralising their information and communication between areas of their business, they are likely to move towards an ERP solution.
Where can I find an ERP solution?
You couldn’t have come to a better place to be asking that question!
Generation CFO has recently launched the CFO Tech 100, a digital portal full of vendors and consultants hand-selected by accounting and finance professionals.
Dive in to our free and easy to use platform and find your next solution, whether it be ERP or something else.
There are so many solutions to be found on the CFO Tech 100, such as BI & Analytics, R&D Tax Credit, Spend Management,P2P (Peer-to-Peer), Financial Consolidation, RPA (Robotic Process Automation), ERP (Enterprise Resource Planning), xP&A (Extended Planning and Analysis), Budgeting and Forecasting.
Just click the button below!