Embracing digital technology opens up numerous avenues for optimizing business operations. With a plethora of tools and platforms available, businesses can enhance revenue generation in less time. One such powerful platform is Enterprise Resource Planning (ERP) software. But what exactly is ERP?ERP refers to software that centralizes and manages diverse business data and processes, significantly benefiting the entire organization on a team level.Continue reading to explore the meaning of ERP and delve into the following topics:
What is ERP? A comprehensive ERP definition
The history of ERP
How ERP systems function
ERP integration and deployment strategies
ERP examples and utilization
Who employs ERPs
The business value of ERP systems
Business functions optimized with ERPs
Do I need an ERP system? Three compelling reasons for considering an ERP system
How can digital marketing synergize with your company’s ERP?
ERP definition: Enterprise resource planning (ERP) is an integrated management automation software that encompasses finance, logistics, human resources, sales, and other departments, requiring a centralized database for automating company processes.ERP software consolidates information from across the business, including sales records, marketing analytics, product inventory, and more, into a single location. It aids in managing related processes, in part by automating routine tasks.ERPs originated over a century ago with the engineer Ford Whitman Harris’s development of the economic order quantity (EOQ) model, a paper-based manufacturing system for scheduling and production. This system became the standard for decades.As technology evolved and demand increased, companies recognized the need for advancement. In 1964, Black and Decker revolutionized the industry by integrating their material requirements planning (MRP) solution and EOQ concepts with a mainframe computer.From there, MRP became the new standard until 1983 when manufacturing resource planning (MRP II) emerged. MRP II first integrated manufacturing and production components, such as billing, scheduling, and contact information, into a unified software system.Finally, in 1990, after decades of computer and technological advancements, a comprehensive system for assisting businesses beyond manufacturing was born: enterprise resource planning.Now that we’ve answered the question, “What is ERP,” let’s explore how ERP systems operate.Dependent on the ERP software, most systems function by:
Offering a central database for storing company data points
Pushing and pulling information from the central database
Sharing data points across departments, from finance to logistics
Providing enhanced internal controls for managing company data and automating processes
Each platform employs unique methods to achieve these goals, as well as varying integrations and formats.Selecting an ERP for your business requires ensuring compatibility with existing software. The following sections cover how ERPs integrate and deploy with other tools in your technology arsenal.Many modern ERP solutions can integrate with other customer- or business-facing tools. The most common method for integration is through application programming interfaces (APIs), but other systems may use enterprise service bus (ESB) and integration platform-as-a-service (iPaaS).Our ERP can integrate with tools such as:
Customer relationship management (CRM)
E-commerce tools
Lead tracking and management
Industry-specific solutions
Other ERPs
Consulting specific providers can confirm compatibility, but most modern solutions are designed to work with other tools. This feature is all about ensuring your business operates as smoothly as possible.There are three primary types of ERP deployment:Once you’ve selected an ERP for your company, it’s crucial to know how to use it. This list of ERP examples can help you get started with many of the most fundamental ERPs:
SYSPRO
Sage
Striven
Kinetic
NetSuite
Brightpearl
Sage ERP
SAP ERP
Infor
Macola
Syteline
ePROMIS
Now that you understand the meaning of ERP and how ERP systems work, let’s discuss who uses them.Multiple industries employ enterprise resource planning systems, including:
Energy
Finance
Manufacturing
Retail
Transportation and logistics
And more
Departments within businesses that will benefit the most from ERPs include:
Sales
Marketing
Accounting
Human resources
Keep in mind that every business is unique. Just because your industry or department isn’t listed doesn’t mean you won’t benefit from an ERP system. Continue reading to determine if your organization might be a good candidate for an ERP.ERPs can significantly impact a company’s operations, processes, workflows, and strategies.Here are just a few examples of how ERP systems can help your business thrive:Are you curious about which business functions and processes you can improve using ERP software? Here are a few processes you can optimize with ERPs:
E-commerce
Finance
Human resources
Marketing
ERP systems can help you deliver a seamless shopping experience for your customers, both in-store and online. Your customers will receive a more personalized experience, while you enjoy increased sales and revenue.An ERP platform also comes equipped with useful dashboards and reports, enabling you to gain a comprehensive view of your finances. You can also use your platform to automate time-consuming tasks by automatically entering figures and purchases into your dashboard.Your human resources department can also benefit from an ERP system. ERPs allow you to manage employee data and information, as well as automate several management tasks, such as payroll. You can better retain and recruit employees while tracking employee productivity and performance.Do you want to optimize your marketing strategies? ERPs can help with that too! For example, you can track the results of your marketing strategies to determine which tactics drive the most leads and conversions for your business.You can also use ERP software to see how users first discover your website, so you can implement strategies to drive more traffic to your website.Do you know the definition of ERP, but are unsure if you need an ERP system? Consider these questions:
Is our data frequently inaccurate?
Is our tech stack integrated?
Is our organization overly dependent on spreadsheets and email communications?
Analyze your tech stack and consider how much time, money, and effort your business spends maintaining its current technology solution. If you’re spending too much time on your current solution, it might be time for a more robust option.While many companies may use tools like CRM software, an enterprise like yours will likely benefit most from an ERP. Whether you need a marketing ERP platform is up to you. ERPs tend to be most beneficial for larger companies with multiple departments and locations to manage.Here are three reasons you might need an ERP for your company:
To connect remote locations
To centralize data across departments
To automate business processes
If your business has stores or offices at more than one location, ERP software is an excellent way to ensure all those locations are in sync.Let’s say you have two stores in different parts of your city. Each store is driving sales, but you want to know how your company as a whole is performing. Using an ERP will allow you to bring all your sales data from both stores together.That means you won’t have to separately consult each store to find out how they’re performing; you can simply look in your company ERP to see how the two stores compare and what the company’s overall revenue looks like.Marketing ERP software isn’t just helpful for centralizing data from different stores. Even if you only have one location, it can still be an excellent tool for connecting all the different departments in your company.When your sales team makes a sale, that affects your product inventory. It also generates data that can be useful for marketing. But if all your departments are isolated from one another, it makes it difficult to distribute that information.An ERP will give your sales representatives, marketers, and more access to all relevant data. If a sale is registered in the ERP platform, it won’t just be accessible to the sales reps; other relevant departments can use that information as well.The final way ERPs can benefit you is by automating business processes. Without an ERP, there are many tasks you must do manually. Those tasks could include updating information on your website, transferring data between departments, and more.But with an ERP, you can automate many simple tasks across your company. Some things you can automate include:
Budget reconciliation
Payroll and employment records
Order processing
And more!
With so many simple processes being automated, your employees will be freed up to spend time on more complex tasks, allowing your business to run more efficiently and generate more revenue.Your ERP has the potential to do a lot for your company, but it could be limited by how much it has to work with. If you’re not making many sales or gathering an abundance of data, an ERP platform may not be helpful for your business.Likewise, your digital marketing can be enhanced by the performance of your ERP, which can more effectively manage leads and sales. The two form a cycle of progress—each of them improves the quality of the other.In short, your ERP is at its strongest when paired with a solid digital marketing campaign. Here’s how marketing and ERPs can boost one another’s performance:
Improved user experience
More website traffic
Lead and conversion generation
One of the first ways digital marketing and ERPs can enhance one another is by improving the user experience on your website and elsewhere.An ERP is an optimal tool for providing better customer service, as it allows you to automate tasks that would otherwise distract you from focusing on the customer. Marketing, meanwhile, can boost your web design and help users engage with you more smoothly.Furthermore, your marketing ERP can help you gain valuable user information on your website, which you can then use to determine where users are struggling or what they seem to have the most interest in. You can then use your marketing to improve those things for users.The purpose of your ERP is primarily centered around compiling business data. But where does that data come from? Much of it comes from your website. Your site is where you can gather data about:
Where users discover your website
How long users stay on your site
Which pages users are the most interested in
Which products or services are driving the most revenue
And more!
With so much data coming from your site, it’s critical to maximize your web traffic. After all, the only way to obtain that data is for people to visit your site.That’s yet another area where marketing and your ERP can work together. With a top-tier marketing campaign, you can draw users to your website and engage them there. That way, you’ll have plenty of information to analyze in your ERP.You can then use that information to turn around and further improve your marketing based on what is and isn’t working. In that way, marketing and ERPs can continually boost each other and drive your site traffic up significantly.Finally, the best thing marketing can do for your business is to drive leads and conversions. You can use your company ERP to manage sales and inventory, but those things only matter if people are buying your products or services.A strong marketing campaign can persuade people to sign up for email lists, try out demos, and ultimately make purchases from your business. Without marketing, though, none of those things will happen. So, for your ERP to be of any real value, you must pair it with marketing.Your ERP can improve the quality of your marketing as well. If you want your marketing to drive a lot of leads, you need to base it on your analytics—analytics that come from your ERP. Use the information from your ERP to determine how you can improve your marketing to drive more leads.Now, all that’s left is to start using your system to drive more revenue and improve your marketing strategies.Digital marketing is your key to unlocking more revenue for your business. Whether you’re using an enterprise resource planning platform or not, you
