At LTA we work with clients across numerous industries, from multi-national companies to smaller start up and growth-oriented companies. If you are a smaller company or your company is currently using QuickBooks or Excel to run your organization, or you feel like you are outgrowing your current software, upgrading to an ERP software platform may be the right option for you. In this article I hope to shed some more light on Enterprise Resource Planning, or ERP for short, and answer what an ERP system is and how your company can benefit from having an ERP system in place.

What is an ERP system?
To start, we have already begun answering what an ERP system is. It is an Enterprise Resource Planning system, but what does that really mean? As PC Magazine states “ERP generally describes a modular software solution that incorporates the financial side of the business and then adds closely integrated app modules that address other areas of business.” These other areas of business are wide ranging and can be industry specific. If you are in the manufacturing business you probably have a module looking at supply chain management, if you are working with consumer goods and sales it may be your CRM or POS system integration.

In today’s world of connectivity and ease of access to software you may think, well I can build something in house and there are plug ins or third-party apps to make my system talk to itself, so I have an ERP system. Though it is heading in the right direction, this is not a true ERP system.

ERP systems bring all of these app modules, tasks and data associated with those tasks into one system to increase efficiency and allow its users to act on all of the data that is being tracked.

How can your company benefit from an ERP system?
This leads nicely into the next question I hope to answer; how your company can benefit from having an ERP system in place. Technology is evolving at a staggering pace, tasks that once took multiple people, multiple days to complete can now be accomplished by your ERP system integration with AI (Artificial Intelligence) in the matter of minutes if not seconds. By utilizing the technology and your ERP system you can start to run your business even more efficiently. As noted in LTA’s 3 Ways AI will Impact ERP Systems post, according to a recent article by Satya Ramaswamy on the Harvard Business Review website, the top 4 ways companies are using AI are to:

1. Detect and defend against securing incursions

2. Resolve customer/user technology problems

3. Reduce production management work through automation

4. Measure internal compliance in using approved technology vendors.

This is only the tip of the iceberg when it comes to the benefits of ERP systems. AI is continually evolving and becoming smarter, this will continue to broaden the tasks that can be automated for your solution. Another game-changer that is filled with untapped potential is blockchain technology. If you thought blockchain was only used for bitcoin, you should check this article out, the applications of blockchain technology seem limitless. To make sure we are all on the same page, according to IBM, a blockchain is defined as “shared, immutable ledger for recording a history of transactions.” As these ledgers are shared and immutable, the ledgers provide a permanent, transparent and extremely secure way to store and transmit data. Companies are already integrating this blockchain technology and immutable ledger into their systems to predict vehicle maintenance, as background checks, and for increased insights into operations. It is now realistic for items to be tracked, such as a tomato, along the whole journey from farm to table.

You may be thinking, great, I can now have a computer that is going to reduce production management and there is technology that is secure and can track things, but how can I make my business better with an ERP system. It accumulates data from all your departments, and gives you access to the data you need to make business decisions across the organization. If your systems are now talking to one another seamlessly, you are collecting more data and you will have all of the data living in one system. This allows you to see a holistic picture of your company and make educated, intentional and strategic business decisions ultimately making your business more successful.

ERP systems are powerful tools that empower companies of all sizes to have their systems across the company talk to each other and share data. If this article has peaked your interest don’t hesitate to reach out to reach out to us for a no obligation consultation.