So do you wonder What is the Meaning of ERP System?
ERP is an abbreviation for Enterprise Resources Planning, which reflects the meaning of the words as it combines several organization’s functions to plan and manage its resources in the most effective way.
So What is the meaning of ERP?, some people refer to ERP as financial operation’s core of the organization only or the accounting application, although there is a huge difference between ERP and Accounting Applications. Accounting application involves only the documents and transactions related to financial transactions like invoices, but ERP integrate entire organization department’s functions in one workflow, for example sales, purchase orders, inventory management and payroll.
Moreover, ERP plays a main role in automating manufacturing process with inventory department automation, which makes it easy to plan for the manufacturing orders based on the available raw materials and its purchase order process and this reflect its cost and affect the financials data core.
ERP, can be used by every role in the organization like Sales Director, Purchase Manager, CFO, CEO and many others to give them real-time visibility for the operations with accurate numbers for better decision-making.
ERP Software, simulates organization’s workflow process, based on several standards of business workflow, it contains all the processes that had been standardized by businesses to enhance cross departments communication and better operations’ feasibility, with no loss of potential sales opportunities or delay in the processes.
With these departments’ integrated in one ERP system, and with live data that had been entered by several users in the organization’s departments, top management can have a good visibility through various reports, for example sales reports, expenses and inventory reports, moreover top management can get organization’s financial status at any time using financial statements reports like balance sheet and profit and loss statements.
ERP applications can come in many forms, one of these forms is the traditional form that had been used for years, is on premises installation, which includes purchasing of organization’s own servers and the ERP Software licences, this form of implementing the ERP is very high in cost and takes long time in installing and implementing the ERP software.
The second form of ERP application is the cloud based ERP Application, because it does not involve purchasing of Servers and Licences, it’s way cheaper than the on premises implementation and faster in implementation, cloud ERP comes as a service with subscription for user per month, which is suitable for organizations which need to save in IT operation cost and total cost of ownership, it makes the software’s implementation as expense not an asset, and it converts the CAPEX to OPEX without compromising in features.
One of the most effective and affordable cloud based ERP systems is iX ERP, iX ERP is a cloud based ERP system with rich in features and affordable price with very high security, reliability and support.
To know more about Cloud iX ERP, check the features of iX ERP for small businesses.