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7 minutes

What is ERP? Definition and examples

Thanks to their ability to consolidate and streamline business processes, ERPs are winning over companies in all sectors. Worldwide, the market is growing at a rate of +10%, and should continue to do so until 2025.

In France, demand is even stronger, with purchasing intentions up 100%. So what's behind this craze, which is affecting not only major groups, but also SMEs and ETIs?

What is ERP?

Definition and new trends

ERP, or "Enterprise Resource Planning", is also known as "PGI", for "Progiciel de Gestion Intégrée". This software centralizes the information and operational processes of all a company's departments in a single database. The aim of ERP is to improve the flow of information, optimize work processes and facilitate decision-making. Often confused with a CRM solution, ERP software does not address the same issues: it aims to rationalize and plan company resources. Prior to 2019, ERP solutions were primarily aimed at finance departments for reporting purposes. The Covid pandemic, the generalization of the Cloud and the improvement of artificial intelligence have revolutionized usage. Thus, the new generation of ERP is distinguished by an ergonomic user interface, enhanced functionality, greater flexibility and easier integration with other tools or software packages. These new ERPs are often available in SaaS (Software as a Service) mode, making them more accessible, more scalable and less costly in terms of infrastructure. What's more, they can benefit from rapid advances in artificial intelligence. Far from being a gadget, AI makes it possible, for example, to anticipate market needs, automate certain processes and benefit from visibility over their operations.

The benefits of using ERP to manage your business

There are many benefits to be gained from implementing an ERP system, and they concern the most strategic activities of companies. In particular, they enable :

  • Centralizing all information and making it available everywhere, all the time. Instead of having data scattered across different systems or departments, it's brought together in one place. This ensures greater consistency, avoids duplication and greatly facilitates access to information for all employees.
  • Coordination and collaboration between different departments within a company. Whether it's human resources, accounting, sales or production, all these departments can work in sync, with access to up-to-date, shared information.

What's an ERP for? Key functionalities 

Once the software has been (successfully) deployed and your teams (successfully) onboarded, you'll benefit from the tool's many features, including : 

Commercial management

An ERP is ideal for supporting sales activities. It enables efficient, transparent management of supplier sourcing, purchasing, inventory management and the entire sales cycle. This centralization facilitates the monitoring of product and service flows, while providing customers with a consistent omnichannel experience. 

Production management

Production management is another essential pillar of ERP, enabling precise planning and rigorous monitoring of manufacturing, thus ensuring that resources are optimally utilized and delivery deadlines met. Net Requirements Calculation (NRC) helps companies to accurately determine the resources needed to meet demand. What's more, thanks to the integrated visualization, it's possible to get an overview of the process and quickly identify bottlenecks or opportunities for improvement.

PIM (product information management)

With a PIM-enabled ERP, companies can centralize, manage and efficiently distribute all product information. Whether it's detailed descriptions, technical specifications, photos or associated documents, everything is stored in one place, guaranteeing data accuracy. 

CRM & Marketing

CRM, or customer relationship management, integrated with ERP, is a powerful tool for managing all customer interactions, whether with leads, prospects or loyal customers. Combined with advanced marketing functionalities, it enables targeted campaigns to be launched, performance to be monitored in real time, and strategies to be adjusted accordingly. 

Popular ERPs on the market

SAP 

SAP is one of the world's leading ERP companies. This software package offers a comprehensive suite of integrated modules covering almost every aspect of business management, from finance to logistics and human resources. Thanks to its S/4HANA platform, SAP also offers real-time analysis capabilities, enabling companies to rapidly process large quantities of data.

The benefits: SAP is renowned for its robustness and reliability. It also offers broad functional coverage.

Oracle PeopleSoft

Oracle PeopleSoft is a suite of business management applications covering a wide range of functions: human resources, financial management, supply chain management... Its flexibility in terms of deployment, whether on site or in the cloud, makes it a popular choice for companies of all sizes.

The benefits: Oracle PeopleSoft offers an intuitive, easy-to-learn user interface. What's more, its compatibility with other Oracle products means you benefit from a complete, well-integrated solution.

SAGE 

SAGE is renowned for its accounting solutions, but over the years, the software package has grown to offer a complete range ofERP solutions for SMEs. Its modules cover areas such as accounting, finance, human resources management and production.

The benefits: aimed primarily at small and medium-sized businesses, SAGE ERP is renowned for its ease of use, flexibility and affordability. It offers seamless integration with other SAGE products. 

Our solution K-NOWdigital adoption platform (DAP), guides your teams through the adoption of your ERP solution. Tutorials, training... everything you need to get to grips with your new system and make upgrades smooth and easy, with onboarding, feedback, intelligent guidance and more...
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