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What Is ERP? Taking a Closer Look at ERP System Examples

October 30, 2018 | By August Infotech
What Is ERP? Taking a Closer Look at ERP System Examples
Already, ERP is a confusing acronym that most have never seen before. ERP stands for Enterprise Resource Planning.

Clear yet? Nope?

ERP gives your company the power to integrate all of the processes of operating a business into one system. That includes accounting, inventory management, and more.

Streamlining these processes could launch your mid-size business to new heights. It's in your best interest to pay attention here.

If you're interested in how an ERP system could benefit you and your business, continue reading. Take a careful look at each ERP system example and discover the power of integration.

What Can ERP Do for My Business?

Operating a business in the modern world forces you to deal with complex networks of computer systems. Wouldn't be easier if there was one system to do it all?

ERP systems are intelligent programs designed to do just that.

ERP systems are designed around a single common database. ERP systems integrate vital business processes into one centralized repository.

Before, each employee would have to keep separate databases and spreadsheets that needed to be manually merged. These systems keep everything up to date across the whole system.

Not all businesses have the same needs. Below are the types of ERP systems you can use.

Cloud ERP

A cloud-based ERP can help you transform your business into an intelligent enterprise.

The system is sourced from the internet. All of your company's data is kept in a secure cloud that can be accessed from anywhere.

On-Premise ERP

These systems are sourced and maintained in a physical office. The biggest benefit of these systems is the ability to slightly modify features of the system.

This is good if you need a more customized system. The upfront costs of these systems are higher, but you have more control of the software.

These systems are good for businesses with mostly in-house employees.

Two-Tier ERP

This system is a combination of the two system types above. Some applications can be run in the cloud while others can be run on-premise.

The ERP system run at the corporate level is different from the system run at the subsidiary level.

At the corporate level, the company can restrict access to certain information, depending on the autonomy across the enterprise.

An ERP System Example

Say you operate a business a business that sells bags. It's an international corporation with subsidiaries in four different countries. The headquarters are in the US.

You might choose a two-tiered system that allows you to track and analyze your finances at the corporate level. At the subsidiary level, the system allows the subsidiary to track orders, inventory, and their own finances.

Streamline Your Business

No matter the size of your business, you could benefit from an ERP system. By combining different processes into one system, you allow your business to operate more efficiently.

You eliminate the need to manually merge data into one system. This can help improve your business's profit margins, order processing, and more.

Hopefully, the above ERP system example has cleared some things up. If you have any questions about August Infotech and how we can help your business grow, visit our blog.

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