Why It Matters
ERPs solve a real problem: businesses running on disconnected systems waste time re-entering data, struggle with inconsistent information, and lack a clear overall picture of their operations. An ERP gives every department access to the same up-to-date data. However, traditional ERPs are expensive, complex to implement, and often require significant changes to how a business operates. Many small and mid-sized businesses find that they need the integration benefits of an ERP but not the full scope, in which case connecting existing specialist tools through custom integrations can deliver similar results at lower cost and complexity. Understanding how an ERP relates to a CRM is also worth doing, since many businesses start with one and later question whether they need the other.
Example
A manufacturing company manages orders in one system, inventory in a spreadsheet, and accounts in separate software. When they receive a large order, someone manually checks stock levels, updates the production schedule, and enters the invoice into the accounting system. With an ERP, placing the order automatically checks stock, schedules production if materials are available, and generates the invoice. Three manual steps removed, along with the errors that came with them. Browse the glossary for related terms.
