5 Things You Should Know About ERP Systems
Getting you prepared before your ERP system implementation
5 February, 2021 by
5 Things You Should Know About ERP Systems
Chong Jin Hong

You might be thinking “What is an ERP system?” 

Well, to explain it in general, an ERP system is a business management system that utilizes technology, so as to allow the integration and automation of daily business tasks.

Read more: What is ERP?

ERP system is a very vast business management system that is able to perform a wide range of business activities, such as financing, accounting, human resource management, customer relationship management, sales, marketing, and so on.

Implementing and adopting an ERP system can be overwhelming to most businesses, as it often involves a lot of learning and change.

However, if an ERP system is utilized properly, it can be a very powerful business management system.

In order to further understand its importance, it is essential to first know what are the major characteristics of an ERP system.

Therefore, here are;

5 things you should know about an ERP system before implementing them

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1.       ERP system is not just for big and large-scale businesses

Oftentimes, an ERP system is thought to be implemented only by big and large businesses.

This is mostly due to the perception of ERP systems being costly.

However, with the advancement of technology, businesses now regardless of their sizes can have an ERP system that is affordable and of great quality

With the constant change in market trends and increased competition, an ERP system has become an essential business management system for all businesses to stay competitive.

A man holding magnifying glass above the bar chart.

2.       ERP system implementation requires planning

To have an ERP system working seamlessly, businesses should first identifyplan, and set a clear goal or objective that they wish to achieve.

From there, businesses will then have to be realistic about what they require, or what they will have to change from their business norms.

An ERP system will only be effective if it works in line with the needs and requirements of businesses.

Thus, internal discussions and plans will be needed to identify which ERP system modules are required, as well as what are the best ways to ensure the ERP system implementation success.

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3.       ERP system is flexible

An ERP system is flexible, which is one of the main traits that make an ERP system great!

ERP is an amazing business management system because there is a wide range of ERP modules available that can be added or removed at any time, to better suit your business needs.

A man is drafting and showing the business plan to his colleague.

4.       Training for employees on ERP systems will be needed

As mentioned before, the ERP system is a vast and powerful system that might require a lot of learning and adaptation from businesses.

Implementing a new business management system can be culturally shocking to certain businesses.

So, to be able to fully utilize the functions of an ERP system and reap all the benefits from it, training will be needed for the teams that will be taking charge of the ERP system.

Having a well-trained team to specifically manage the ERP system implemented will be extremely vital to the success of a business.

Few stacks of coins on table.

5.       ERP system reduces the costs of businesses

ERP system promotes the integration and automation of manual business tasks.

With the implementation of an ERP system, the costs of acquiring more resources to carry out the tasks can be reduced greatly as manual tasks are automated.

Automation and integration of tasks help avoid human errors as well, which could lead to fewer business losses.

With the reduction of costs and losses, businesses will then be able to increase their profit and revenue.

The decision to implement an ERP system can be a huge leap of faith for businesses.

Therefore, it is absolutely crucial to select the best and most experienced ERP consultants for a smooth implementation process.

Reach out to Malaysia’s official gold Odoo partner now for your ERP system implementation!