ERP Systems: How Companies Optimize Their Processes Through Networking

ERP systems provide companies with a network for optimizing operational processes. Whether the solution is operated in the cloud or on the server on-site – its strength lies in its broad applicability.

Decision-makers from all sectors of the economy recognize the value of digitization. It promises companies growth impulses and offers tools for the future. But the transition to the new era will not succeed with data streams alone – Enterprise Resource Planning systems are required for this. These all-rounders bundle digitized information from various departments in the company and provide both man and machine with the necessary decision-making aids. At its core, ERP systems provide modular function blocks that store content in a central database and thus enable an efficient exchange between the networked programs and processes.

The High Degree Of Adaptability Of ERP Systems

ERP systems absorb almost all information that can be relevant in any form to day-to-day business. Thanks to their high degree of adaptability, companies have a wide range of modules to choose from. These categories can be roughly divided into finance, logistics, personnel management, costing, and production, but this generalization does not apply to the range of possibilities. ERP systems only obtain their information from the data streams fed in. Double entries are avoided, and a central database creates a common backbone so that everything from the warehouse to payroll accounting is based on the same figures.

As such, the amount of options available depends on the company’s level of digitization. However, this does not mean that largely analog businesses benefit from this. In booking and accounting, there is great potential for automation that ERP systems can easily access. In addition, numerous service providers support establishing the network with digitization measures, which companies can use to increase the density of their data stream.

ERP Systems – Tailor-Made Fit Better

Mass-produced goods rarely fit perfectly – this also applies to the digital infrastructure. Even supposedly simple parts of ERP systems, such as smartphone app versions, raise various questions. For example, salespeople need access to data from the company network. Whether it is about stocks, graphics on capacities, or staff availability depends on the individual business model. The requirements for the software interface are correspondingly different.

If the components for this only come from the kit of an ERP system geared towards universal functionality, there is a risk that certain features are not optimally tailored. On the other hand, individual solutions offer specialized functions but cost more to purchase. For most companies, combining a broad base system with individual adjustments of key features should therefore be more practicable.

Providers Are Moving ERP Systems To The Cloud

Traditionally, digital infrastructure consists of the on-site servers through which the data traffic runs. However, particularly large providers of ERP systems are increasingly relocating their offers to the cloud. Of course, this means that you will bind customers more effectively, but this solution also offers interesting opportunities for users. For example, it enables a reduction in one’s digital infrastructure. End devices on which data can be saved and a stable internet connection are sufficient to access the company network. This is a practical option for companies on a steady growth path because they don’t have to expand their hardware continuously, and home office becomes much easier.

Even with a decentralized location structure, the comprehensive connection to the system is relatively easy with the help of a cloud. It is important here that the ERP core system provider has open REST API interfaces. Many other services can be connected quickly and easily, creating the company’s solution. In addition, an interface makes it easier for companies to switch software partners. In this way, companies can get all of their data if necessary. In addition, the operator is responsible for data protection and security. That is why service providers usually keep the transmission protocols up to date with the latest technology. However, the physical location of the data center should be in Germany.

Use Growth Potential

ERP systems develop their full capabilities in controlling. There, employees have access to the bundled data without digging through mountains of different sources. In addition, forecast modules simplify forecasts and help identify possible bottlenecks early. In this way, the management can get an overview of the data situation to adjust to the corporate strategy in good time. ERP systems improve the networking of processes all around and, at the same time, ensure the necessary transparency for trend-setting decisions. They help awaken dormant growth potential and remain flexible at all times. If the future belongs to data, companies can now set the course for it.