As companies grow, they often reach a stage in which spreadsheets become insufficient to manage the day-to-day business activities. At the point where growing businesses decide to scale up, ERP solutions become crucial. What is an ERP solution, and how does it benefit growth-focused businesses?
What Is ERP?
ERP stands for Enterprise Resource Planning. It’s software designed to manage the day-to-day business activities and core functions of business processes, including accounting, manufacturing, supply chain management, sales, marketing, and human resources.
An ERP system is programmed into the central database of a business, creating a connection between multiple business processes and allowing data to seamlessly flow between them. With data from all the departments, ERPs can automate business processes and provide insights and internal controls.
ERP for Growing Businesses
When the technology was first introduced, only large organizations could afford to invest in Enterprise Resource Planning systems. However, with innovation and improvements in the technology, the complexity and cost of ERP systems have dropped drastically, giving growing businesses access to the benefits once reserved for larger companies.
ERPs are often implemented in growing industries when there is a rise in the number of employees, exploding demand for products or services, or increased production. In rapidly growing industries, old accounting solutions often prove incapable of keeping up with growth. ERP systems are flexible and can be tailored to meet the needs of every business.
Growth-focused businesses can benefit from the shared transactional data created and managed by ERP systems. This interconnectedness and synchronization eliminates data duplication and provides data integrity with a single source that tracks all aspects of production.
ERP Software for Growth
In evaluating ERP vendors for growth-focused businesses, emphasis should be placed on the needs of a business. An ERP system can be used as a management tool, a customer relationship building tool, an employee productivity tool, and more. While a broad range of ERP solutions cater to growing enterprises, here are some of the key SAP offerings designed to support scaling businesses in their ERP implementation journey:
- SAP S/4HANA Public Cloud Edition: Ideal for growth-focused companies seeking advanced real-time analytics, AI, and machine learning. It provides full ERP functionality across finance, supply chain, procurement, production, and sales, with high scalability to support global operations as your business expands.
- Microsoft Dynamics 365: A comprehensive business management solution for growing companies that connects finance, sales, service, and operations. It's highly adaptable and integrates seamlessly with other Microsoft products, offering flexibility as your business scales.
- Acumatica: Known for its flexibility and ability to handle complex business processes, Acumatica is a strong choice for growing companies in various industries. It offers robust features for financials, distribution, manufacturing, and project accounting, all within a scalable cloud environment.
- NetSuite ERP: Businesses with a heavily online presence benefit best from NetSuite ERP. It allows businesses to automate e-commerce, inventory management, supply chain management, financials, and customer relationships.
- Odoo: Odoo is an open-source tool that can be used in managing manufacturing, inventory, projects, and accounting. As an open-source tool, Odoo allows users to integrate over 23,000 third-party apps to further suit their business model and improve overall efficiency.
Why Should a Growth-Focused Business Use an ERP System?
What is the importance of ERP for a growth-focused business?
- It reduces operational costs. The data analyzed by ERP systems helps growing businesses identify best practices and reduce operational costs.
- Because the processes are automated, ERP improves data integrity and financial controls, which reduces business risks.
- ERP helps improve business efficiency by creating a common user experience across all business functions.
- An ERP system improves business insight by monitoring real-time information generated by reports.
- An interconnected ERP system ensures consistency in a business's infrastructure from the back office to the front office.
- An ERP can help enhance collaboration among users sharing data in contracts, requisitions, and purchase orders
In a Nutshell
ERP systems provide a model that helps growth-focused organizations integrate and manage their employees, business processes, and technologies. Before choosing an ERP solution, be sure it suits your business model and integrates with your existing business management software.
Learn more about SAP Cloud ERP solutions for your growth-focused business by contacting one of our experienced ERP consultants at (801) 642-0123 or by writing us at info@nbs-us.com.