Imagine starting a digital business, let’s say a Fintech. At first, it’s only you and two mates. You have a couple of spreadsheets with data that fine for now. Your business starts growing. You hire five people, and the spreadsheets aren’t enough anymore. You need a better solution. You find a few online solutions to organise your processes, such as Salesforce and Magento, but have been finding it hard to manage payrolls and financial transactions manually, but you’re holding on. Your business took off, your fintech is one of the most popular in Australia, and you’re already making plans for the future. Why not expand? Add even more employees? There’s only one problem. Essential data and information are scattered all over the place. Your business is using four different kinds of software that don’t communicate with one another. How can your business expand with this informational chaos? That’s when ERP comes on the scene.
What is ERP
Enterprise Resource Planning (ERP) is a system of integrated software applications that businesses use to manage day-to-day activities, streamlining and integrating business processes across finance, human resources, manufacturing, supply chain, sales and other departments.
ERP systems are designed around a single, defined data structure that typically has a shared database, tying together many business processes and enabling data flow between them. By collecting an organisation’s shared data from multiple sources, ERP systems eliminate data duplication and provide data integrity with a single source of truth.
In essence, ERP is the vehicle for integrating people, processes, and technologies across a business. Instead of several disparate systems with an endless inventory of disconnected databases and spreadsheets, ERP systems bring order to chaos so that all users, from all hierarchical levels, can create, store, and use the same data derived through common processes. With a secure and centralised data repository, everyone in the organisation can be confident that data is correct, up-to-date, and complete.
Properly operating ERP systems enable businesses to reduce the time required to complete virtually every business process. They also promote collaboration through shared data organised around common data definitions, resulting in better decision-making. The standardisation and simplification that ERP systems offer result in fewer rigid structures, creating a more future-ready organisation that can adapt quickly while increasing collaboration potential.
Why ERP is important for business
ERP systems can improve businesses efficiency and productiveness in several ways. For instance, by combining financial information in a single system, ERP systems unify an organisation’s financial reporting. They also integrate order management, making order taking, manufacturing, inventory, accounting, and distribution simpler and less susceptible to error processes. Most ERPs also include customer relationship management (CRM) tools to track customer actions, providing deeper insights into customer behaviour and needs. They can also standardise and automate manufacturing and supporting processes and unify procurement across an organisation’s disparate business components. An ERP system can also provide a standardised HR platform for time reporting, expense tracking, training, skills matching and greatly enhance an organisation’s ability to file the necessary reporting for government regulations across finance, HR and the supply chain.
How to choose the right ERP
The right ERP system for your company is one that supports your needs and is scalable enough to grow along with your business, has modules and features that drive savings and help you capitalise on opportunities. Choosing an ERP system is a big decision, so take the time to evaluate all options in depth.
Here at Annexa, we have the expertise to guide you through the journey of implementing NetSuite and show you how to get the best out of NetSuite’s solutions. If you’d like to know more about how NetSuite can streamline and improve your business processes, reach out to our team in Melbourne, Sydney, Brisbane and New Zealand here.
Annexa is a leading NetSuite partner with extensive experience designing and implementing comprehensive and customised business systems, including payroll solutions, financial management, warehouse management and ecommerce solutions.