Why ERP solutions are essential for your growing business

Here, we look at Enterprise Resource Planning, what it is and how it can benefit your company.

Enterprise Resource Planning (abbreviated to ERP) solutions are now commonplace in the day-to-day business of industrial, commercial and service-providing businesses.

Also referred to as company software, business software, business management or commercial software, these solutions support and manage all the important business processes in communication, development, production and sales, and provide transparency in stock and the flow of goods. Scenarios for use are as varied, individual and complex as the companies in which they are used. Given the sheer number of ERP solutions on the market, with their different applications, technology concepts and scope of features, it is a real challenge to find the right solution for each individual organisation.

Related: What is an ERP system and how does it work?

The focus should be on initially determining the basic objectives for using an ERP system, i.e. What needs to be achieved?

Process optimisation, improved efficiency and cost reduction are frequent answers to this question. But what exactly does this mean for the individual company? And how can the benefits of a piece of software be measured and evaluated? Also, should such an investment be costed and paid for over the long-term? The software must be an exact fit for the company’s strategy, and cover not just current but future needs. This applies equally to current and future technology requirements and innovations.

The search for an ERP solution should therefore be well planned. Time is needed to determine current and future requirements and to scrutinise the market for the most appropriate provider. The company’s aim is to achieve its objectives by choosing the most appropriate ERP solution and to thereby gain a long-term competitive advantage.

Despite vast differences in products offered, line of business, employees etc, the same principle applies to all companies: The use of appropriate business software supports the running of the business and its success.

An ERP solution contributes to growth and enables a company to react more quickly to changes in market demand and therefore be more successful in the long term.

It manages all processes within the company, provides an appropriate information base, increases transparency about the financial situation of the company, optimises the distribution and customer communication processes, makes the manufacturing process not just more efficient but shorter, and much more.

According to a Gartner Study, top business priorities have shifted in recent years, from cost-saving to growth and profitability. For no less than 41 per cent of companies, growth is now one of the top three priorities and IT solutions play a pivotal role in making this happen.

Therefore Enterprise Resource Planning software can help businesses to meet their priorities. Only if the corporate goals and strategy have been clearly defined can the best ERP solution be found and its introduction can be considered a success. And this applies to all businesses. The software needs to fit the company needs.

Related: Six signs that it’s time to change your ERP software – With new technology and developments, replacing your ERP system can be a catalyst for a wide range of positive changes throughout your business.

Ben Lobel

Ben Lobel

Ben Lobel was the editor of SmallBusiness.co.uk and GrowthBusiness.co.uk from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

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