What is ERP Software : Enterprise Resource Planning

ERP, which has an expansion in the form of enterprise resource planning, is the software that organizations use to manage their daily work. Thanks to this software, activities such as project execution, accounting and risk management can be easily managed. In short, Enterprise Resource Planning (ERP) is the software used to manage activities such as purchasing, project management and legislative compliance of companies. It supports seeing many business processes together and data flow between them. For this reason, it is used by many companies. Even its use is of great importance. Ensuring data flow with a single source of truth clearly shows the importance of enterprise resource planning. It also helps in budgeting, planning the financial result of the company.

Fundamentals of ERP

ERP systems operate on a common database. This helps the information used throughout the company to have general definitions. The basic elements of ERP then connect the workflows in many departments of the company and provide integrity. These business departments may be units such as engineering, marketing or human resources. In short, ERP is a planning that must be implemented in order to ensure integrity in the modern company understanding. One of the most important aspects of being a successful company is the enterprise resource planning technique.

ERP is important to see the company's income and expenses in an accurate account by organizing the data in a systematic way. In this way, the company can see all its costs and better predict the path to be followed. However, there is a point that needs attention in order for this to happen successfully. The fact that an expression in the form of "x" in one software system is in the form of "y" in another software system and "z" in another prevents this situation. In such a case, the company cannot accurately determine how much it spends on product x, and therefore cannot adjust itself as a budget.

Collecting data on behalf of a large distribution center is also basically one of the elements of enterprise resource planning. These planning systems create a system that allows all users to create data instead of using unconnected e-tables. In this system, there is every account of the company. In this way, it is ensured that the company process is carried out jointly. The secure and centralized corporate data repository also ensures that anyone can access data accurately. E-tables are error-prone, but ERP does not. A detail that is overlooked by one person will definitely be caught by another.

Business Value of ERP

The value of ERP on today's companies is quite large. Since the company's data and all these processes are processed in this system, all departments work in harmony. All workflows are in unity. For this reason, the company can achieve significant savings. As you can see, ERP offers many advantages. Here are some examples of those benefits:

• With the simplified business processes, the overall cost is reduced.
• increased cooperation; It is possible with users' contracts and data sharing.
• Due to the creation of the report, there is the development of their business.
• Efficiency increases with well-defined operating flows.
• Infrastructure gains a homogeneous structure and shows consistency.
• All business activities give the same view.
• The adoption rate of users increases, resulting in a common user experience.
• The risk has been reduced by providing full data integrity and full financial controls.
• Thanks to the integrated system, operation and management costs have been reduced.

As you can see, the ERP system has many advantages over the company. This planning, which is used to be a systematic study, is a technique that today's companies love to use.

Which ERP System is More Advantageous to Use?

Although there are three different types of ERP systems, each has its own characteristics. With the right system, you can make faster decisions and avoid unnecessary transactions. In this way, you can also reduce the cost. For this reason, you should know enterprise resource planning systems well and make a choice accordingly. Let's examine these systems together.

• Cloud-Based ERP: It is a system in which data is managed centrally from the cloud, as well as users can access this system via an internet browser. Due to the IT infrastructure, the cost and user effort in the application are generally very low. There are advantages such as better performance in this system, which includes fast deployment time at installation and timely system upgrades. The fact that no additional hardware is required saves the installation time of the infrastructure in terms of time. The ERP system vendor automatically upgrades the system so your system can run smoothly.
• On-premises ERP: It works on computers, depending on the person or institution that created the software, not a remote facility like a cloud-based system. This system, which is then managed by the IT staff, is the system where the primary investment is high. Because the company must put a lot of effort and time into maintaining and upgrading the system. The resources allocated to the dedicated IT team need to grow. Despite all these negative features, it provides users with the opportunity to access their own data with additional personalization feature. In addition, users have control over the implementation process.
• Hybrid ERP: As the name suggests, due to its hybrid structure, some of the components are in the cloud while some are in-house. For this reason, it is also called two-layer ERP. There may be points where companies do not want to invest in some businesses in the first step and want to limit their budget in this regard. In this case, hybrid ERP, which is simple and quite suitable for scaling, is one of the systems frequently used today.

Which ERP Software Is Better?

Although there are more than one ERP software, the best ones are obvious. Here are those five best ERP software…

1. SAP : It is one of the most popular and successful ERP software. Its name covers almost all ERP products. The products of this brand, which is one of the leaders of its market, are in the high price category.

2. Oracle: Although it is the second largest name in this market, it has the first place in the CRM market. He has a great deal of experience, having been in the ERP market for more than three decades. Its products are in the high price category just like SAP. However, since it has a flexible module, it is quite open to customization.

3. Infor : Although he is the third biggest name, he has only nineteen years of experience. It produces software solutions that are ideal for various financial systems, customer relationship management, supply chain management. This company, which has more than seventy thousand customers around the world, is known to have key power where it provides ERP solutions. It offers ERP solutions in discontinuous production. The products sold by the company are in the low to medium price category, unlike other brands.

4. Microsoft: It is one of the brands that is strongly maintained by small and medium-sized companies. The products sold by this company, which has more than eighty-three thousand customers around the world, are in the low to medium price category. It is one of the preferred names because it has a strong channel network in order to process ERP products.

5. Epicor: It is one of the brands that has been serving since 1972 and has made a name in the corporate solution market. This brand, which has more than twenty thousand customers in 140 countries, has a dealer channel with a very high added value. In addition, it is loved and preferred because it offers strong industry solutions. The products it sells are in the low to medium price category.