Saturday, April 23, 2022

ERP systems and management systems: let's finally clarify

 What are we talking about when we use the expression “ERP systems”? And  what sets them apart , if any, from classic management systems (also called management software for companies)?

 A management software, also called a management system, is a very important tool for companies. It allows you to insert that automation component  that helps make the business modern  and in step with the times. Business management systems can be applied to the management of accounting, for example, or that of the warehouse, production processes or even financial analysis.

 Their evolution goes hand in hand with that of computers and technology: at present their power in terms of supporting individual business processes is practically infinite. They are one of the keys to the strategic support that every modern company needs, whatever its size. These software are not only accessible to everyone , but also easily adapt to each company , size and needs. The goal is to optimize time and resources in the organization of work, in production, in the general management of the company, obtaining practically immediate benefits by speeding up many processes.

 Management software for companies: programs that integrate all information

 How do they differ with ERP Accounting Software solutions in UAE? Basically, we are talking about management companies that belong to the same family, because the goal is the same: to improve business processes  and, consequently, also management . But in this case there is a further step forward. First of all, the acronym stands for  Enterprise Resource Planning , ie planning of business resources, and it is a management system that  integrates  all business processes in a single element . The company management, therefore, connects production, sales, inventory management of a warehouse, accounting, human resources and also aims at optimizing work in terms of efficiency and profitability.

 If, however, with a classic management system we dedicate ourselves to every single sector of the company, working independently, with the ERP we create a sort of IT interconnection between all sectors. Information in management software for companies runs faster and benefits from it is, for example, the management of production times: if information from warehouses or suppliers arrives quickly to those who manage production, it means that there is no risk of running out. of materials; if, in the same way, the integrated system communicates information on the request, one can imagine to model the production according to real needs.

 In short, the fronts that the use of an Erp system can open are many  and all very modern . Choosing to dive into the 4.0 era of industry with a solid Erp system is not only a sign of modernity, but also of intelligence. The goal is not only the speed of communication between the departments of the company (which also visibly improves), but rather the quality of these communications. Targeted, fast, effective.

 Business management or ERP: what to choose?

 Given the potential of Erp systems, it is clear that choosing what is closest to the needs of a company is a crucial step. If with classic management systems it is enough to simply assess the needs of a specific department, with these technologies it is necessary to proceed with a preventive mapping of business processes . Only in this way will it be possible to be sure of which type of ERP is best suited to the business model in question. It's a longer process at first, that's true, but it pays off in the distance. An Erp has a considerably longer life cycle than classic management systems: we are also talking about ten years of life, a period in which nothing remains static, indeed! Everything evolves hand in hand with technologies, and updates are a necessary and periodic step.

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Their extended life cycle translates into a greater impact on business mechanisms . An Erp is almost the backbone of a company, and once integrated it will no longer be possible to give up its benefits . They exploit the potential of the web, of course, but also of Cloud systems and this allows even the smallest companies and start-ups to take advantage of advantages  that would otherwise have been prohibitively expensive. All its activities and processing are strictly in real time and with certain more extended versions it can be expected  manage the dialogue with customers and customer care. By virtue of all these advantages, it is clear that there is also a difference in costs to be evaluated, but it is understandable given the total life cycle of an Erp, the work it does and the advantages it entails.

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