Enterprise Resource Planning (ERP) solutions are an essential part of the success of any business. Traditionally, ERP systems consist of a comprehensive set of integrated software applications that enable the management of critical business processes, resources, and data in a centralized system.
Different roles in a company have different challenges that a modern ERP system can address. The business manager needs to increase efficiency and therefore wants to measure accurately, make quick and precise changes to critical processes, and ensure a frictionless work environment. The CFO needs to be able to quickly produce reports based on reliable data to align the business with informed decisions. And the IT manager needs to be able to quickly respond to business needs and find technology solutions that help the business move forward.
This article discusses how next-generation ERP solutions offer even more sophisticated capabilities than ever before, such as artificial intelligence (AI), machine learning (ML), predictive analytics, and cloud-based services. These capabilities can give companies deeper insights into their business and the ability to make more informed decisions for increased profitability.
What is an ERP solution and how does it benefit businesses?
Enterprise Resource Planning (ERP) are comprehensive business system with integrated applications that help companies manage their operations, resources, and data efficiently and centrally. Some standard modern and future-proof ERP solutions for medium-sized companies are Microsoft Business Central, SAP Business One and Oracle NetSuite.
Benefits of modern business systems
Scalability and flexibility
Next-generation ERP systems are distinguished by their impressive scalability, making them capable of growing and adapting to the needs of the business. Whether it’s handling increasing transaction volumes, expanding into new markets, new offerings, business models, or including more users and devices, these systems are flexible enough to be easily upgraded to handle the increased complexity and load. This provides a powerful growth platform without requiring costly and extensive upgrades.
Moreover, these systems are characterized by their increased flexibility. No longer rigid and immutable, modern ERP systems can be configured and customized to support unique business models and workflows. Systems are continually upgraded without the need for re-customization. Customized solutions can be created to meet specific requirements using flexible tools and configuration options. This avoids getting stuck in predetermined structures and provides an agile and adaptable working environment.
A key factor contributing to increased scalability and flexibility is that many newer ERP systems are cloud-based. By avoiding the need to invest in and maintain their hardware, companies can benefit from the resources of the cloud platform. In addition, cloud-based systems allow for easy collaboration and inclusion of colleagues from different geographical areas, providing increased flexibility and the ability to take advantage of a global workforce.
New technology enables predictive analytics
Using advanced algorithms, modern business systems can help us analyze and interpret data in a way that goes far beyond what human analysts can achieve. Instead of seeing figures from last month and acting reactively, as humans often do, it is now possible to get predictive analysis and work proactively.
Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML in the new business systems can reveal hidden patterns and trends in large and complex data sets. By analyzing data from different sources, the system can identify connections and features that may not be obvious to humans.
AI-based business systems can also use historical data and advanced algorithms to make predictive analyses and predictions about future events and trends. Companies can proactively adjust their operations and make informed decisions by anticipating customer behaviors, product demand, inventory needs, and other vital factors.
Another benefit of AI and ML is the ability to analyze and predict customer preferences and needs. By analyzing customer data and behavioral patterns, the system can create tailored offers, recommendations, and marketing campaigns that are relevant and engaging to each customer.
AI and ML can also automate and accelerate decision-making. Analyzing and interpreting data in real time allows it to quickly generate relevant and accurate insights to support decision-making. Microsoft AI Copilot, which will be part of Microsoft Business Central, is an excellent example of how AI can be used as part of the business system to automate and simplify work and thus reduce costs.
Improved integration opportunities
By integrating with different systems, applications, and data sources, modern business systems become a coherent and seamless working environment that promotes efficiency and productivity.
With a real-time, holistic view of the current situation, it is much easier to act quickly and accurately. For example, sales data from a CRM system can be integrated with financial data from an ERP system to get a complete overview of the company’s revenues, costs, and profits.
Integration also facilitates the automation of workflows and processes across different systems and departments. This reduces manual tasks, eliminates duplication and increases efficiency. For example, a customer order can automatically generate an invoice in the ERP system and update the stock status in the warehouse management system.
Integration also facilitates the automation of workflows and processes across different systems and departments. This reduces manual tasks, eliminates duplication, and increases efficiency. For example, a customer order can automatically generate an invoice in the ERP system and update the stock status in the warehouse management system.
Increased security
New business systems include more advanced encryption methods and security protocols to protect data and information. To prevent unauthorized access and data breaches, sensitive information such as customer, financial, and trade secrets are encrypted during storage and transmission. This minimizes the risk of data theft, identity theft, and loss of trust from customers and stakeholders.
Furthermore, more advanced authentication and authorization control features are often included where users authenticate themselves through multi-factor authentication (MFA) or biometric identifications to gain access. Administrators can also define and manage permissions for each user or user group, ensuring only authorized individuals can access specific data and functions.
As previously mentioned, many modern ERP systems are cloud-based. This usually comes with built-in backup and data protection features. Data is automatically stored and backed up on the cloud server, reducing the risk of data loss in technical failures or disasters. In addition, cloud-based platforms often also take responsibility for security and data safety, including encryption, firewalls, and continuous monitoring of security threats, providing an even higher level of data protection.
Better user-friendliness
A modern ERP system is intuitive, with a logical layout and clear icons and menus that reduce the learning curve and the need for training. Users should quickly and smoothly navigate the system and perform their tasks without unnecessary confusion or loss of time.
They should also be able to customize and configure the system according to their own needs. Users can create a work environment that suits their specific work style and preferences by allowing personalized settings, such as interface customization, display preferences, and workflow settings. It often increases productivity and engagement when employees feel ownership and control over the system.
Cloud-based ERP systems also improve user-friendliness as users can easily access the system from different locations and devices. All that is required is an internet connection. A modern ERP system can be taken into the field and worked on via laptop, mobile, or tablet.
Welcome to discuss modern ERP systems with us
At Navcite, we work with consulting, implementing, and maintaining business systems for medium to large companies in various industries, such as manufacturing, distribution, and projects. We find that success comes to those who manage to become truly data-driven and can measure and monitor the business to make quick adjustments and match market fluctuations.
Contact us, and let’s discuss your company’s unique needs.
