What is Enterprise Resource Planning (ERP)?
ERP refers to a type of agile software solution that enterprises use to manage daily business
operations as well as processes across various functionalities; finance, procurement, logistics,
compliance, human resource, marketing and even sales. It provides efficient integration of multiple
business functions with greater visibility over day-to-day activities and the best part of this is its built
on a single platform with a common and consistent data model; making it the single source of truth
for key data.
By uniting multiple business functions together, ERP helps to eliminate redundancies such as data
duplication and integrity. Today, ERP systems are a critical business partner for enterprises of all sizes
across a plethora of industries because it is seen as the main electrical source that keeps the lights
on.
A brief history of ERP
Since the early 1990s, ERP’s adoption rate has been growing rapidly while the cost of implementing
the system also grew. The reason behind the high implementation costs? Large hardware was
required to run ERP software and it is typically placed on-site at the enterprise; imagine big machines
stacked in a server room as we often see in movies. On top of that, both hardware and software
licenses required heavy investments annually and depreciation takes place over 5 to 10 years.
Customisation of such systems to fit the need of an enterprises also tends to incur further financial
costs through consultation, training & maintenance.
Fast forward to today, ERP systems have evolved leaps and bounds by embracing and leveraging on
the internet. Implementation costs have gone down substantially while demand for ERP continues to
grow as huge hardware is no longer a necessity while enabling agility in system customisation of
enterprise needs.
In other words, ERP system implementation is just a call away.
The Business Value of ERP
In any successful enterprise that has weathered economic and global challenges, it is a sure bet that
ERP can be found at the heart of almost all business activities. When key data and processes are fed
through ERP, leaders will be given the keys to orchestrate different business functions as one; often
resulting in significant financial savings. A snapshot of ERP’s capabilities is as follow:
- Enhanced Business Insights through real-time data generated by reports
- Lower Operational Costs by streamlining and optimising business processes
- Effective Collaboration between teams
- Greater Productivity as a result of efficient resource and process management
- Stable Infrastructure provides a solid spine for business activities to rely on
- User Friendly applications that promote high user adoption rate
- Reduced Risk through data protection, integrity and expert controls
- Best Practicesbeing at the forefront of all key business functions
Get Started with Sage 42’s ERP Systems
Enterprises often struggle to balance between traditional systems against the need for
modern customized features with flexibility. One of the key benefits of Sage 42’s Service as a
System (SaaS) model is that the software is kept updated with the latest industrial features,
functions as well as best practices. This means that once the latest technology emerges in
the market – such as AI, digital bots, analytical tools – we will provide access to it at your
doorstep.
By catching the wave of new technologies, enterprises can quickly elevate their business
activities and thus remain or become a market leader. ERP is well equipped to reduce heavy
reliance on manual interventions while providing real-time single source of truth data points
across all key business functions. Sage 42’s system provides a quick and agile platform that
enable leaders to make sound decisions through a few clicks instead of having to physically
travel to multiple locations or rely on fragmented pieces of information that are often
scattered across the business floor.
Built for the digital age, today’s ERP system capabilities do embrace mobile, social and latest
emergent technologies while being efficiently user-friendly. Learn more about how Sage 42
can help your enterprise.
