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What Is an ERP System and Why Does My Company Need it?

If you are operating a small to mid-sized business, chances are you’ve heard of ERP systems and technology. But what exactly does that mean, and how can it help your business?

The acronym ERP stands for Enterprise Resource Planning and it refers to the unified management of various business processes, typically with the help of software and other integrated technology. This answer may seem vague, but “ERP” is an umbrella covering a wide array of tools and resources. There is no such thing as a “one-size-fits-all” solution, and an effective ERP system is customized to fit the specific needs of a specific business in a specific industry. All ERP systems share a common purpose: to make business processes more efficient, organized, and coordinated.

At its core, an ERP system features a common shared database that tracks some form of business resources, like money, materials, and production capacity, and the state of related commitments, like orders, deliveries, purchases, and payroll. All businesses require the transmission of data between departments such as manufacturing, sales, accounting, human resources, production, and more. An ERP system helps organize information and controls the flow between internal departments and external organizations.

ERP tools can be integrated into all operations or functions within an organization to give a more accurate picture of the individual processes and track their statuses over time. As a manager or leader, you can use an ERP system as a platform to facilitate process standardization and improvement across multiple departments simultaneously.

There are hundreds of add-ons and resources that can be tailored to fit the needs of each department through every level of your business operation. Given the freedom of customization and utility across industry type, it’s no wonder so many business owners are asking “Do I need an ERP system?”

Having the right systems in place is vital to your business's success. The Attivo Group is here to help ensure your business is working efficiently so that is can continue to grow. If you still need help answering the question above, give us a call today and schedule a complimentary analysis and consultation at 877-428-8486 or contact us online.