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In the corporate world, it is not always easy to choose the best path. Every decision is a step on the path to success . Therefore, it is important to seek information and tools that make this process more assertive and effective.
today's accelerated 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 the reduction of errors, allowing decision making based on real data and constant visibility of business processes.
Therefore, in this article, we will embark on the topic of the ERP system, clarifying what it is and detailing some of the main advantages of this tool in helping managers in the business decision 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, among others.
By automating and centralizing information collection, 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
ERP systems are made up of several modules that meet different business needs. Among the main modules, the following stand out:
Financial module
Fundamental to 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
Facilitates team management , including recruitment, payroll and talent development, by offering data on employee performance.
Inventory management module
inventory control , tracking items from acquisition to sale, improving operational efficiency.
Purchasing module
Simplifies the process of acquiring materials and services, as it automates purchase requests, approvals and receipt of goods.
Supply chain management module
distribution activities , as it helps companies manage suppliers and optimize the supply chain, reducing costs and improving delivery times.
Advantages of adopting an ERP system
The ERP system can benefit a company by managing different sectors in an integrated way.
ERP technology, by centralizing data, helps in decision making as it is possible to have reports and analyzes in real time, eliminating redundancies and errors, allowing an integrated and accurate view of the company's 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 said 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 -based decision making comes into play , something of utmost importance for organizations that want to stand out.
This is because it implies the use of verified and analyzed numbers to guide strategies and choices, instead of just being based on “guesswork”. The so-called data driven culture .
With this, it is 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 carried out by MIT , companies that adopt data-based decisions have 6% higher productivity than other organizations.
Therefore, tools such as ERP , which organize and facilitate access to information, gain space and become important.
Benefits of data-driven decision making:
- Accuracy : Decisions based on verified information.
- Agility : Quick responses to changes.
- Forecasting : 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 updated data from all their areas, which allows 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 that corporate decisions and strategies are based on concrete data and not on intuition, the impact on operations is positively great.
This is because it is much easier to improve internal processes, identify bottlenecks and fragile sectors, 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 clear that technology is transforming business management , facilitating several aspects, such as, for example, access to data in a simplified way.
An ERP (Enterprise Resource Planning) system fits into this context, as it offers several features that improve decision-making in companies.
Find out more below:
Real-time data collection and integration
A crucial point of the 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 updated view of the entire operation.
Custom data analysis and reports
With an ERP system, data analysis and creation of personalized reports become more accessible and effective. Management software offers tools that allow you to transform large volumes of data into valuable software for decision-making.
Through control panels and dynamic graphs, managers can identify trends , evaluate performance and detect areas that require improvements 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 history, 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 the text we saw everything about ERP and how it can improve business decisions. But did you know that this technology doesn't have to be physical? It is possible to migrate the ERP to the cloud and enjoy a lot of flexibility and scalability.
At Skyone , we are subject matter experts and offer Skyone Autosky , a product of our cloud computing module, which is the ideal choice for this situation.
This is because it provides the essential tools to migrate, manage and orchestrate software and servers in the cloud safely and without complications.
Request a demo now and find out more details!
Conclusion
As we have shown throughout this article, an ERP (Enterprise Resource Planning) system is an essential tool for making business decisions.
By centralizing and integrating data from different sectors, such as finance, control, logistics and human resources, an ERP facilitates the production and use of information in real time.
This data centralization not only significantly improves the quality of decisions, but also positively organizational productivity.
Did you like the content? Read also: What is ERP: find out everything about the tool
