WHAT IS ERP? WHY SHOULD EXECUTE ERP SOFTWARE?

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In this era of Industry 4.0, access to information technology is always a must for all businesses to be able to integrate internationally, improve the competitiveness of brands and help businesses access. customers quickly. In the list of information technology improvements of most businesses, ERP accounts for a large part. So what role does ERP play in business growth?


1- What is ERP?
ERP (short for Enterprise Resource Planning) can be understood as an overall business management term with the core of resource allocation planning. Depending on the nature of the industries, ERP can customize the module structure and features in the ERP system accordingly.
The use of ERP in enterprises will bring more integration than when applying discrete management technologies. ERP can synthesize and link various data such as accounting, human resource management, tax declaration ... based on modern modules with high performance. Thereby, businesses can better control indicators related to liabilities, costs, revenue, profit ... in order to determine optimal resource allocation strategies for the following production and business phases. This, we can evaluate the employee's KPI.
2- What is an ERP system?
Designed for each different profession
For each different business function, ERP will be designed with one module corresponding to this business. Businesses may require ERP software designers to create multiple modules depending on the nature of their operations.
Ability to integrate, strong links
The modules in ERP will be closely linked together to create high information uniformity, making the data processing part faster. Each of these modules should be flexible in order to be customized for every situation the business may encounter.
Clear data analysis to the administrative level
The data analysis functionality of an ERP system must be based on a "cost-centric" or analytical-oriented algorithm (such as the efficiency of each step in the production line versus economic efficiency. business of each area). From there, businesses can understand their business operations to make more optimal resource allocation strategies. This is a key step in creating an effective ERP system.
Openness
ERP is highly open, considered through the real business process metrics of the modules (business). With the above parameters, enterprises can create and modify management plans corresponding to both the module level and the whole.
In addition, openness is also shown clearly through the connection of data from multiple modules and databases in ERP to create valuable secondary parameters for businesses.


3- What benefits does ERP bring to businesses?
Provide secondary data, strategic direction for the business
ERP software will become the "backbone" of all activities of any business department, including individual activities and mutual coordination between departments. The flow of information provided by ERP software will help businesses really understand the current operating status, as well as offer solutions, optimal for the future.

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