ERP System
ERP - Enterprise resource planning

ERP systems for small business have become the most popular software systems in the enterprise to streamline and optimize internal processes in companies. ERP mainly stands for Enterprise Resource Planning. It is a set of business strategies designed to integrate all the internal processes of an organization into a single framework.

ERP software system is used to integrate and assimilate all the systems of the organization in such a way that performance and productivity of the organization are improved continuously. Enterprise resource planning is basically an integrated management of various business functions, usually in real-time and mediated largely by information technology and software. ERP streamlining enables to reduce the operation costs and improve overall business performance.

Enterprise resource planning (ERP)

Implementing an ERP system for small business requires proper assessment of all the processes involved in the organization and their inter-relationship. This requires a thorough analysis of the present business conditions, current market trends, needs of the employees, and the available technologies.

The present trend in the software market is based on the concept of layer approach. An ERP software system is divided into tiers in order to enable a better scalability and more robustness.

ERP systems are categorized into two major categories according to their architecture. They can be either;

Top 10 ERP Vendors - 2022 Ranking

HORIZONTAL – The data defined in the software is distributed over different nodes

VERTICAL – Vertical architecture places the data defined in the software on a single node.

ERP systems for small business with common database management are very flexible and provide for easy accessibility and sharing of information across the organization. On the other hand, real-time processing capabilities of ERP systems are highly beneficial in speeding up the process of decision making and improving the quality of delivery.

Real-time transfer of information enhances collaboration among the different team members and also improves the quality of data definition and reporting, making the enterprise resource planning much more effective. Real-time transactions facilitate decision making and improve the collaboration among employees at all levels.

One of the most significant limitations of ERP software is its data definition requirement. It cannot define the scope of the product availability in the future as it does not incorporate MRP (material, resources, and plans). Moreover, an ERP system may not be able to track the lifecycle of the products that are part of the organization. There are a number of other factors like lack of real-time processing capabilities and poor data availability that may hamper the efficiency of ERP software in defining the scope of product availability and the lifecycle of the products within the organization.

Also see: Team Collaboration software

WHAT IS ERP IN SIMPLE TERMS?

ERP systems have become the most popular software systems in the enterprise to streamline and optimize internal processes in companies. ERP mainly stands for enterprise resource planning. It is a set of business strategies designed to integrate all the internal processes of an organization into a single framework. ERP systems for small business is used to integrate and assimilate all the systems of the organization in such a way that performance and productivity of the organization are improved continuously. Enterprise resource planning is basically an integrated management of various business functions, usually in real-time and mediated largely by information technology and software. ERP streamlining enables to reduce the operation costs and improve overall business performance.

WHAT IS ERP SYSTEM AND HOW DOES IT WORK FOR SMALL BUSINESS?

ERP stands for enterprise resource planning. It is the integration of a variety of business functions to create one comprehensive business system. ERP integrates all facets of a company’s operations, including management, purchasing, inventory, human resources, and production. To be more precise, ERP is a software system that encompasses the entire lifecycle of a business from product creation to customer sale. The fact is ERP systems are very complex and managing them can consume huge amounts of time and effort. This is the main reason why many companies do not go in for ERP systems for small business until they face severe problems with their business processes.

So what is ERP systems and how does it work? ERP involves a significant change in the way your company operates. You cannot just rely on the same old procedures and practices for your company. There are certain things that need to change, and this is where the role of ERP systems comes into play.

ERP basically brings a central control center to your company. This way you have direct access to all the vital information of your organization. The central database controls the flow of data and helps in making critical decisions. Since your company deals with large amounts of data and information everyday, you need a reliable and quick means of accessing all the data. The problem with using desktop computers for accessing your company’s database is that they are slow. Also, you need extra computers and power supply to store the data on these computers.

Another aspect of ERP, which people tend to misunderstand is the involvement of technology in this process. A majority of companies believe that ERP is an application, which is nothing but an interface between an organization’s data and its computer systems. In other words, an interface is what is needed to facilitate communication between the business processes.

It may not be the software as such, but it is a way of organizing data, processes, and information, and at the same time, keeping track of them. All the above-mentioned features can only be possible if your company uses a proper ERP system.

However, the fact is that there are many other components involved in what is ERP systems work. You need to understand how to integrate your ERP applications with your other software and hardware in order to get the maximum productivity from your employees. Integration has always been one of the most important parts in ERP systems development.

Another aspect which most people tend to ignore when talking about ERP systems is the training aspect of integrating your ERP applications with other applications. If you do not train your employees properly and ensure proper integration with your company’s systems, you may end up wasting your resources and hurting your company’s productivity.

FEATURES OF ERP SYSTEMS 

There are many features of ERP systems for small business to look out for and also appreciate. Below are some of them;

INTEGRATION

Integration is perhaps the most important aspect of ERP for small business. This means that integration is made easier between various departments as well as across organizations. ERP also facilitates better collaboration and communication between staff members, which in turn reduces the cost of business. 

  • BETTER COLLOBORATION AND COMMUNICATION

ERP also facilitates better collaboration and communication between staff members, which in turn reduces the cost of business. In addition to this, it is said that ERP helps in improving productivity, quality and customer service

  • AUTOMATION

With ERP systems, small business are able to automate all their business processes from reporting to data storage and the rest of them.

  • REPORTING

Many small businesses are also going for cloud computing because it helps them save money on purchasing required software and hardware. Enterprise resource planning will be able to provide them with all the resources, including customer service and human resources.

  • CUSTOMER RELATIONSHIP MANAGRMRNT

The features and benefits of an ERP system will also extend to the customers of your company. You can expect such a system to bring great improvements to the way that customers are offered services and the level of satisfaction with the products and services offered by your business. When a customer uses a reliable ERP software, he can be assured that his files are in a safe place and that he can access them whenever he needs to. In addition, he will not have to spend his valuable time searching for relevant documents whenever he needs to make inquiries or follow up on packages that have been signed with your company.

TOP ERP SOFTWARE SYSTEMS FOR SMALL BUSINESS

We’ve highlighted some of the ERP systems for small business below;

SAGE 300

Sage 300 ERP system can be used by any small business that needs to have a complete set of information which can be accessed at any given point of time and from any place in the world. The system of this software will help such company to maintain its record of accounts receivables as well as maintain the total amount of cash on hand, so that no cash is left out while the company makes progress in its business. It is very easy to use and install, and all one needs to do is to log into the system, which requires only basic computer know-how. Even if someone has never worked with ERP software before, he or she can still work with the software since it comes with a user-friendly interface.

One thing that one must keep in mind is that the main aim of Sage ERP is not only to help the business in terms of maintaining its data but also make the company more profitable. If you are wondering what can be gained from such a system, then the first thing that you should know is that the ERP system helps to reduce the cost of handling the data. 

FEATURES OF SAGE 300

  • Account management
  • Customer Relationship Management (CRM)
  • Management of fixed asset
  • Supply Chain Management
  • Budget management

SAP ERP

ERP (Search, Analytics, Enterprise Resource Planning) is a business resource planning software developed by the German firm SAP SE. This helps to integrate the core business functions of an enterprise across the enterprise. SAP ERP helps to manage the different projects and departments of an enterprise. The ERP system includes a web-based user interface, which helps to create databases, change in information and other tasks. The ERP also helps in developing reports and analyzing the data, which allows the company to make decisions related to their business.

FEATURES OF SAP

  • Financial management and reporting
  • Sales and customer management
  • Purchase and inventory control
  • Analytics and Reporting management

NETSUITE ERP SYSTEM

A number of ERP systems like Netsuite ERP are available in the market today. Netsuite ERP is a common amongst all these packages as it provides the users with the same features and benefits as other packages. This system comes free with any installation and does not require any extra fee while running. The software package also integrates well with the existing systems and allows users to integrate data from any source into the data storage and analysis systems. All the major components of the system are featured in this product.

Netsuite ERP has been designed keeping in mind the present-day business needs and requirements of the organization. The software is easy to install, and the system architecture is robust. The package also supports multitasking and allows the users to work with multiple data sources at the same time without any problem.

It does not consume a lot of disk space and it has an easily updatable database which allows the users to run the scan or the report in less than a minute. The interface and the navigation of the application are very simple, and the reports generated by the system are very useful for decision making.

FEATURES OF NETSUITE

  • Easy and free installation
  • Allows for multiple data sources
  • Automatic data restoration for users
  • Less disk spaces

INTACCT ERP SYSTEM

Intacct ERP system is used in order to integrate the data that is present in the company with the information that is required by the business to achieve its goals. With the help of this system the necessary information regarding the employees, the assets and the production can be accessed with ease. The entire process is managed through the computerized systems, which helps the company to make the necessary changes in the workflow processes as and when required.

In order to use Intacct ERP system, the company has to first register themselves with the hosting company that will help them to access the Intacct ERP system through an internet interface. They will also have to configure their login details with the hosting provider in order to access the Intacct ERP system which will provide them with a clear view of all the information regarding the company’s processes and workflow. Once the company gets registered, they can use the Intacct ERP system in order to make the necessary changes in their operations which will ultimately help them in achieving the objectives of the company. There are many companies that provide Intacct ERP system to help the company improve the workflow processes and to control the operations which would otherwise be difficult to handle.

FEATURES OF INTACCT

  • Team collaboration tool
  • Reporting and Analytics
  • Workflow management
  • Cash recording
  • Ledger management

DELTEK ERP SYSTEM

Deltek is a company that produces an ERP software product. This software product will help your business increase its productivity and, thus, boost your profits. Deltek ERP can be used to run any type of business, from restaurants to hotels to corporations and it can be integrated with all of these businesses seamlessly.

Deltek ERP is actually two systems in one. It is a complete ERP system that includes applications, database, reporting and more. The two parts of this system are called Enterprise Resource Planning (ERP) and Organizational Resource Planning (ORP). By using either one of these Deltek ERP software products you will have the upper hand in your business. If you need more information about what this amazing software product can do for your business just go online and search for Deltek ERP.

FEATURES OF DELTEK

  • Customer Relationship Management (CRM)
  • Account management
  • Business integration
  • Financial Reporting

MICROSOFT DYNAMICS

 Microsoft Dynamics ERP is a web-based software that enables users to assimilate all the data from the company’s internal systems and external sources such as call centers, third party vendors and the likes in a single platform which can be accessed by all employees for collaborative purposes. It also makes tracking and analyzing data much easier.

The Microsoft Dynamics ERP architecture helps in categorizing the data according to logical sources of data from external sources as well as internal ones. It helps the organization to align its business processes with the right goals and objectives, which in turn enables it to achieve success in the desired manner. This ERP system enables all the different departments to work as a unit to bring the organization closer to its goal. It also facilitates better collaboration among the various units to provide the exact needs of the organization for growth and progress. The data warehouse stores the information about the incoming data, provides a map of the entire organization and assists in decision making process.

FEATURES OF MICROSOFT

  • Financial reporting
  • Sales Management
  • Business analytics
  • Supply Chain Management

The benefits of an ERP system can be quite convincing, especially if you are the owner of a small or medium sized company that is looking to implement such a system. Before purchasing any ERP system, whether it is for your small or large business or for your own personal use, there are some things that you need to know and consider first. One important aspect that you should definitely take into consideration first when you think about incorporating ERP packages into your business is the fact that your business will be better off with a proven and effective ERP system that can integrate all the different modules efficiently and effectively. If you are not sure which company or product is the best choice for your business, you can always get reviews or feedback from people who have tried out the system and see how they felt about their experiences with the products.