What is ERP?
ERP stands for Enterprise Resource Planning
What is the simplest ERP definition? Think about all the core processes needed to run a company: Finance, HR, Manufacturing, Supply chain, Sales, Procurement, and others. At its most basic level, ERP integrates these processes into a single system. They provide visibility, analytics, and efficiency across every aspect of a business. Using the latest technologies, ERP systems facilitate the flow of real-time information across departments, so businesses can make data-driven decisions and manage performance - live.
A key ERP principle is the central collection of data for wide distribution. Instead of several standalone databases with an endless inventory of disconnected spreadsheets, ERP systems bring order to the chaos so that all users—from the CEO to accounts payable clerks—create, store, and use the same data derived through common processes. With a secure and centralized data repository, everyone in the organization can be confident that data is correct, up to date, and complete. Data integrity is assured for every task performed throughout the organization, from a quarterly financial statement to a single outstanding receivables report, without deploying error-prone spreadsheets.
Why is ERP important?
An ERP system is made up of enterprise resource planning applications that talk to each other and share a database. ERP systems tie together and define a plethora of business processes and enable the flow of data between them.
By collecting an organization’s shared transactional data from multiple sources, ERP systems eliminate data duplication and provide data integrity with a “single source of truth.” Your system can automate your core business processes and help you ensure regulatory compliance, reduce risk, fast-track reporting - and so much more.
The central feature of all ERP systems is a shared database that supports multiple functions used by different business units. In practice, this means that employees in different divisions - for example, accounting and sales - can rely on the same information for their specific needs.
Past: The History of ERP
The term ERP was coined in 1990 by Gartner1, but its roots date to the 1960s. Back then, the concept applied to inventory management and control in the manufacturing sector. Software engineers created programs to monitor inventory, reconcile balances, and report on status. By the 1970s, this had evolved into Material Requirements Planning (MRP) systems for scheduling production processes.
In the 1980s, MRP grew to encompass more manufacturing processes, prompting many to call it MRP-II or Manufacturing Resource Planning. By 1990, these systems had expanded beyond inventory control and other operational processes to other back-office functions like accounting and human resources, setting the stage for ERP as we've come to know it.
As computer technology evolved through the 1970s and 1980s, concepts similar to MRP II were developed to handle business activities beyond manufacturing, incorporating finance, customer relationship management, and human resources data. By 1990, technology analysts had a name for this new category of business management software - enterprise resource planning.
Present: ERP Today From On Premises to the Cloud
There are three different types of ERP deployments - cloud, on-premise and hybrid. Explore the benefits of each and choose the one that makes the sense for your business.
Simplify your IT landscape – and take Advantage of affordable subscription pricing – with cloud-based ERP (SaaS ERP).
Run your enterprise resource management software behind your own firewall – for maximum flexibility and control.
Run some of your ERP applications on premise and some in the cloud – with hybrid ERP (also known as two tier ERP).
Future: ERP Trends ERP at any size
What are my options?
Contrary to what you may have heard, ERP isn’t just for large global enterprises. If your small business or midsize company is drowning in spreadsheets, manual processes, and bad information from disparate solutions, it might be time to move to an ERP system. At Synconics, we offer different types of ERP systems – small, medium, and large – as well as industry and company-specific functionality. Whether you operate a small business or a Fortune 500 company, we have ERP software to meet your unique business needs.
Small Business ERP: Do you have 50 employees or fewer? Our small business ERP software can help you graduate beyond spreadsheets and efficiently manage every aspect of your growing company - from sales and customer relationships to financials and operations. Available on premise or in the cloud.
Today’s economy requires a new generation of interconnected and flexible business systems. See how deploying the right ERP solution can help you enable the transformation necessary to meet rising customer expectations in the digital world.
Midsize Business ERP Ideal for midsized companies and subsidiaries with up to 100 employees. Leverage built-in analytics, rapid deployment, and best practices for different business processes - financials, HR, procurement, supply chain management, and more.
Replacing legacy data structures with a whole new generation of technology that brings exponential performance and new problem-solving capabilities.
In a fast-moving, constantly changing global economy opportunities wait for no one. Agility, speed and flexibility are essential in getting operations up and running fast following the launch of new products or services, acquiring or merging companies, entering new markets or geographic expansion.
Fully configurable and designed for large enterprises with global or subsidiary operations - and is deployable on premise or in the cloud.
How do I get started with ERP?
Ready for ERP, but not sure where to start? Let our expert ERP consultants help you choose the right system for your business and develop a successful ERP implementation plan. Go live quickly, customise your solutions, achieve seamless ERP integration, speed time to value, and more.