The ERP functional architecture features an integrated platform that consolidates all business data and operations into a single location. The most common business functions in ERP include Finance, HRM, Supply Chain, CRM, and Project Management. Additionally, ERP system functions also incorporate Artificial Intelligence (AI) and Machine Learning (ML) capabilities to automate business processes and make it easier to identify ongoing trends, predict outcomes, and anticipate business demands.
Industries are heavily relying on ERP functions to ensure productivity, enable efficient operations, and help leaders make well-informed decisions. While the functional modules of ERP cover a range of capabilities, they often require integration with specialized software for more advanced functionality across all domains.
What Are The Core Functions Of An ERP System?
ERP features and functions are not only restricted to large corporations, but they also enable small companies to optimize their business with products that ensure a scalable solution that fits every business size.
The blog aims to empower companies towards making an informed decision for choosing an Oracle ERP functional for their business needs. Let’s quickly dive into the ERP function bios to understand the benefit of each module for your business.
Financial Management:
This module encompasses core accounting functions that can include payables, receivables, ex[emses, cash flows, and revenue recognition. Additionally, advanced business function in erp might incorporate complex features such as forecasting, budgeting, and asset management. Collectively, such functional modules of ERP can enable organizations to streamline all financial operations.
Accounting
This ERP system functions as a standalone accounting software consisting of tools that are extensively used for preparing the general ledger, managing cash flows, recording expenses, and preparing invoices. This software enables pulling data from different source systems, synthesizing it, and then storing it in a central repository where it can be used for all the important financial functions.
Order Processing
The process refers to optimizing operations from taking orders to fulfilling them. The incorporation of an ERP system makes managing information from different departments efficient and easier to proceed with order fulfillment across multiple departments.
Integration
This ERP functionality is the complex aspect of the software, as it enables business data to be shared between systems for faster insights, and this is how ERP functions improve decision-making, lead towards more agile collaboration, and automate data transfers without the need for any manual help.
Data Analysis
If your business operations involve activities such as forecasting, budgeting, or performance tracking, erp functionality checklist will create actionable insights by storing all business data in a centralized location, providing better insights to decision-makers who can then plan an appropriate course of action.
Businesses aiming to get the most out of their data reporting should definitely consider incorporating Oracle ERP functional modules that allow users to create custom dashboards and reports, making the complex data easier for the decision-makers to evaluate.
Automation
Businesses always search for opportunities that could reduce their manual efforts for repetitive and repeatable tasks. Automating processes not only reduces the hassle of completing work but also makes business processes productive and efficient. Instead of working on low-value and repetitive tasks, your employees can invest that time in learning new technologies or incorporating operations that could add value to your business.
You should evaluate your business tasks and decide on the ERP features and functions needed to accurately meet the needs of your business.
Supply Chain Management
The supply chain feature in industries enables industries to track demand, monitor inventory levels, ensure optimum manufacturing, and efficient distribution. Therefore, it is crucial to study the in-depth supply chain features that could add value to your business and how the process can be integrated with ERP functions.
The ERP functional requirements for supply chain management systems should help companies set achievable and realistic inventory goals and create effective distribution plans that could maximize the company’s profit. Moreover, incorporating ERP software would enable businesses to pinpoint areas of inefficiency and give them greater control in balancing their supply and demand.
ERP systems that include CRM features can bring customer relationship data into your centralized database. This way, every business activity that you perform ties back to the value you’re delivering to end-users.
In seconds, employees can access all the information they need on each account, including contacts, order history, and prospect status.
When this information is digitized and automatically updated, team members can easily perform tasks, such as:
- Completing purchase orders
- Creating accounts receivable reminders
- Alerting account executives to follow-up on prospects in the sales pipeline
Many types of CRM software are sold as standalone systems and focus on outward-facing activities, such as:
- Customer interactions
- Pipeline management
- Sales tracking
- Prospecting activities
- Marketing campaign development
However, there is a great advantage to integrating CRM and ERP functionality. When you do so, you can align your customer-focused activities with your back-end processes and operational data. This enables centralized control of accounts and contracts.
If the systems are separate, users must retrieve this data by bouncing back and forth between two platforms. By integrating, you can eliminate the risk of data duplication or inaccuracy, and you can facilitate cross-department collaboration.
What Are The Differences Between ERP And Traditional Business Software?
There is a huge difference when comparing ERP with traditional business software, not just in terms of automation, but various business activities that have positively affected businesses and increased their value over time. Business functions in ERP have experienced the following key enhancements in their operations:
- Smarter Decision-Making: ERP functions refer to the collection of data from multiple datasets and arranging the information altogether. This allows accessibility to a huge information that allows companies to make informed decisions. Instead of conducting extensive research only when the need arises, the software enables companies to have access to a stream of data that can be easily transferred across different departments, enabling companies to stay ahead of the market trend.
- Improved Productivity: The continuous flow of information across different business departments allows employees to identify the performance gaps and areas of improvement through which they could mutually work to achieve business growth, resulting in improved productivity and efficiency.
Since the functions of ERP helped employees to be better informed of the ongoing trends and they were able to closely align with the business needs, the company succeeded in achieving a competitive advantage.
Automation
Incorporation of sources like AI and ML to gather data and evaluate past activity plays a major role for businesses in identifying trends and to anticipate future demand top stay ahead in the industry by making themselves well-equipped with all the evolving trends.
ERP solutions are primarily focused towards speeding up business processes by significantly reducing manual efforts. This helps minimize frustration among employees and since the employees are no longer involved in manual tasks, they could concentrate more towards areas of improvement and how to achieve better performance metrics.
Cost-effective:
A direct advantage of automating business processes is reduced operational cost and further achievement of better enterprise resource planning.
For example: NetSuite Implementation Cost focused on executing plans that could improve efficiency and make optimal use of business resources.
Improved Data Security
ERP software designed by highly skilled Oracle ERP functional analyst offers huge confidentiality of data. It ensures the business data is safeguarded and further eliminate the threat of any information being transferred into wrong hands. ERP functions ensure to maintain log reports that monitors the accessibility of users and further enable managers to allow employees to only access the data that is relevant to their job need.
Conclusion
The blog has comprehensively highlighted various ERP business functions. Understanding how each enterprise resource planning function and feature works for your business is essential towards achieving your business needs.
As NetSuite ERP Solution Provider, we are well-versed in evaluating your business needs and can help you understand how each ERP function bios might align with your business goals. If you need help in understanding how an ERP system can transform your business with end-to-end growth and efficiency, book a consultation call with us!
