What is an ERP?

Questions and answers about what an ERP is, what it is for, what functionalities it incorporates, what advantages it brings to a company...

Table of Contents

  What is an ERP and what is it for?

ERP (Enterprise Resource Planning) is specialized software for the management and planning of business resources. The functionalities that an ERP incorporates are, for example: accounting, sales, purchases, clients, suppliers, inventories, documentation, merchandise traceability ... 

The objective of any ERP is to optimize and automate all the administrative processes of a company.

 What characteristics does an ERP have?

Some of the common characteristics that ERP systems have are: Access to a centralized database, data capture and processes automatically, modular operation, interaction between the various modules (company departments), allow customization through personalized developments, Operations in real time.

A common feature in ERP is access to all company data through a centralized database .

  Advantages of ERP system implementation in companies?

Improved decision making.

By having a single centralized database with all the data related to each other, it is possible to estimate future scenarios with greater precision since all the centralized information is available in a single dashboard. Therefore, the decision-making process is better as it is based on real data.

Greater control and traceability.

The systematic collection of all the data of a company facilitates the control of the organization. It is possible to control the transit of the product through all the elements of the value chain (traceability).

Duplicities are avoided.

Thanks to the centralized database of ERP systems, managers can access the information of each department. Therefore, the information only needs to be inserted once, thus reducing duplicate records and duplication of operations.

Cost reduction.

The level of business costs is significantly reduced thanks to the greater efficiency, the elimination of duplication and the reduction of errors.

Safety

ERPs improve the security of our information thanks to the different levels of access or authorization to the ERP (by role or department). In addition, all the information being centralized and digitized is protected against loss (for example, paper documents) with backup copies generated automatically to protect us from possible errors.

  Stages of ERP implementation

The implementation of an ERP is established in 6 stages: Planning and consulting, parameterization, migration, training, start-up, monitoring.

Planning and consulting

The study of the needs and what are the functionalities that your company needs are the first task that must be carried out.

Carrying out this process correctly will allow us to:

  • Obtain an ERP that meets and adjusts to our specific needs.
  • Greater integration of the operations and areas of the organization.
  • Optimize the implementation stages.

Parameterization

During the parameterization process, the hardware and software installation will be carried out according to the guidelines obtained in the previous process.

Parameterization is the key phase to adapt ERP to business needs and workflows. Another key factor is the type of ERP that has been selected:

  • ERP on premise
  • ERP cloud (installation on computers outside the organization)

Migration

An important step in the implementation of ERP is data migration. It is necessary to identify and select which data has to be imported from the old system to the ERP in order to carry out a massive load of data.

Training

Staff training is one of the most important processes in the implementation of an ERP. ERP users must receive training on its use prior to the project start-up process.

Start

The last phase of the implementation of an ERP is the startup. The company already makes full use of the software. In this phase is when the support to users by the company (partner) that has implemented the ERP begins.

Follow-up

Once the implementation is finished, it is usual to contract a maintenance service with the ERP partner so that doubts, updates or errors that may arise can be solved.