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In the corporate world, choosing the best path isn't always easy. Every decision is a step on the road to success . That's why it's important to seek information and tools that make this process more assertive and effective.
With today's digital transformation
In this context, an ERP (Enterprise Resource Planning) system proves to be an excellent ally.
This is because it is a technology that centralizes information from different sectors within an organization, allowing for the reduction of errors, enabling decision-making based on real data, and providing constant visibility of business processes.
Therefore, in this article, we will delve into the topic of ERP systems, clarifying what they are and detailing some of the main advantages of this tool in assisting managers in the business decision-making process.
Check it out below!
What is an ERP system?
An ERP (Enterprise Resource Planning) system , or Integrated Business Management System, is software that centralizes and integrates data from different sectors of an organization, such as finance, sales, accounting, logistics, purchasing, and others.
By automating and centralizing information gathering, ERP facilitates accurate analysis and the creation of insights that improve decision-making.
These systems allow companies to:
- Store data in a structured way.
- Automate manual processes.
- Unify the visualization of results.
Main modules of an ERP system
ERP systems are composed of several modules that meet different business needs. Among the main modules, the following stand out:
Financial module
Essential for financial management , this module covers accounts payable and receivable, cash flow control, and credit analysis, automating accounting processes and ensuring accuracy and regulatory compliance.
Human Resources Module
It simplifies team management , including recruitment, payroll, and talent development, by providing data on employee performance.
Inventory management module
inventory control , tracking items from purchase to sale, improving operational efficiency.
Purchasing module
It simplifies the process of acquiring materials and services by automating purchase requisitions, approvals, and the receipt of goods.
Supply chain management module
This module is critical for coordinating logistics and distribution , as it helps companies manage suppliers and optimize the supply chain, reducing costs and improving delivery times.
Advantages of adopting an ERP system
An ERP system can benefit a company by managing different departments in an integrated way.
By centralizing data, ERP technology aids in decision-making because it allows for real-time reports and analyses, eliminating redundancies and errors, and providing an integrated and accurate view of company operations.
We highlight some of the main advantages of its implementation:
- Centralization of information
- Process integration
- Holistic view of the entire operation
- Task automation
- Productivity improvement
- Cost reduction
- Easy access to company information
The importance of data-driven decision making
As we mentioned at the beginning of the text, making decisions in the corporate world can be complicated, but technology is within our reach to help in this process.
data- driven decision making comes in , something of paramount importance for organizations that want to stand out.
This is because it involves using verified and analyzed numbers to guide strategies and choices, instead of relying solely on "hunches." It's what's called a data-driven culture .
This makes it possible to predict future scenarios, better understand the market and consumers, and determine the paths to follow, minimizing risks and taking advantage of opportunities .
Companies that adopt data-driven decision making are generally more competitive. According to research conducted by MIT , companies that make data-driven decisions have 6% higher productivity than other organizations.
Therefore, tools like ERP , which organize and facilitate access to information, are gaining ground and becoming important.
Benefits of data-driven decision making:
- Accuracy : Decisions based on verified information.
- Agility : Quick responses to change.
- Prediction : The ability to anticipate future scenarios.
- Transparency : Information accessible to the entire team.
- Competitiveness : Better adaptation to market trends.
Informed decisions
With an ERP system , companies have access to accurate and up-to-date data from all their areas, allowing managers to make more informed and assertive decisions.
Consolidated information from different departments allows for a more detailed and comprehensive analysis, resulting in better strategies.
Impact on business operations
And from the moment corporate decisions and strategies are based on concrete data and not on intuition, the impact on operations is positively significant.
This is because it becomes much easier to improve internal processes, identify bottlenecks and weak areas, reduce costs, allocate investments, and improve the quality of products and services offered.
Furthermore, the ability to analyze trends and patterns enables proactive adjustments that are directly connected to the competitiveness .
How an ERP system improves decision making
It is well known that technology is transforming business management , facilitating various aspects, such as simplified access to data.
An ERP (Enterprise Resource Planning) system fits into this context, as it offers several features that improve decision-making in companies.
Learn more below:
Real-time data collection and integration
A crucial aspect of an ERP system is the collection and integration of data in real time , allowing all areas of the company to be connected on a single platform.
When data is entered or updated in one department, the information is reflected in all others. This provides the manager with a unified and up-to-date view of the entire operation.
Data analysis and customized reports
With an ERP system, data analysis and the creation of customized reports become more accessible and effective. The management software offers tools that allow you to transform large volumes of data into valuable information for decision-making.
Through dashboards and dynamic charts, managers can identify trends , evaluate performance, and detect areas that need improvement or new investments.
Access to crucial information
Having access to relevant information is essential for any manager. An ERP system offers this advantage by centralizing all company data on a single, accessible platform.
Managers can access financial reports, sales histories, inventory, and much more, all in real time and from anywhere.
This constant availability of information allows for quick and well-informed decisions.
Migrate your ERP to the cloud with Skyone
Throughout this text, we've covered everything about ERP and how it can improve business decisions. But did you know that this technology doesn't have to be physical? It's possible to migrate your ERP to the cloud and enjoy greater flexibility and scalability.
At Skyone , we are experts in this area and offer Skyone Autosky , a product from our cloud computing module, which is the ideal choice for this situation.
That's because it provides the essential tools to migrate, manage, and orchestrate software and servers in the cloud securely and without complications.
Request a demo now and learn more details!
Conclusion
As we have shown throughout this article, an ERP (Enterprise Resource Planning) system is an essential tool for business decision-making.
By centralizing and integrating data from different sectors, such as finance, control, logistics, and human resources, an ERP system facilitates the production and use of information in real time.
This centralization of data not only significantly improves the quality of decisions, but also has a positive on organizational productivity.
Did you enjoy the content? Read also: What is ERP: learn everything about the tool
