ERP (Enterprise Resource Planning) is a software designed to manage day to day business activities and integrate the main areas of an organization’s business processes into a single unified application/system. In other words, ERP is central point for all business operations which help achieve maximum productivity.
ERP is made up of software components which are also called modules, which focuses on key business areas such as accounting, HR, CRM, asset management, inventory management, production management, supply chain management etc. Modules to be used varies from one organization to another depending on the particular business they run.
Benefits of ERP Software in Nigeria
ERP software offers credible solutions to challenges faced by many nigerian companies of different scale. Below are some of the key reasons why many businesses in Nigeria are embracing ERP Solutions like never before.
1. Increase Productivity and Efficiency
ERP improves workflow and enable employees do their jobs more efficiently by bridging the gap between business departments.
Moreover, it improves productivity by automating tedious, repetitive and redundant tasks. Thereby, giving room for employees to focus on more profit producing task. It takes them from being busy to being productivity as their energy and time is spent on other important business operation.
2. Improve Business Growth and Performance
In Nigeria, ERP systems helps to accelerate business performance and better position it for growth by managing complex processes as well as providing better business intelligence.
With its advanced reporting and analytic tools, it gives an accurate insight about your business performance rate which involves telling you how your campaigns are performing and the conversion rate of people in your sales pipeline. Also, it gives you an insight into areas that needs improvement as it shows you areas you are performing poorly, areas which leads aren’t so engaged in and so much more.
3. Enable Wise and Proactive Decision
The system of ERP enables business managers in Nigeria to make faster and well informed decisions that will positively impact different areas of their businesses. This is due to the powerful reporting and forecasting tools of ERP software that gives real time view of business operations and help to proactively address business concerns and push for growth.
4. Reduces Operational Cost
ERP software saves businesses lots of money through various ways like streamlining and automating which improves business performance, productivity and leading to the need of less staffs. Also, it discourages unplanned cost that will arise due to lack of business foresight and insight.
5. Real time Operational Information
ERP software gives greater and real time visibility into different operations of a business, due to its ability to be accessed 24/7, which has been helping businesses in Nigeria become self-aware about their current state.
ERP facilitates collaboration of businesses in Nigeria by integrating data from various departments at various levels; between employers and their employees, between employees from various departments, between branches, branches and headquarter and also between businesses and their vendors. The ease in sharing information leads to greater effectiveness.
7. Minimize Human Manipulation and Errors:
As a result of its ability to collect data from multiple sources across various departments, it eliminates data duplication, provide data and provide financial integrity.
Furthermore, it allows transparency, which spots falsifications, data errors, and financial irregularities or discrepancies. This feature make some user refer it as “single point or source of truth” software.
8. Data security
Nigerian companies that utilizes the services of ERP boast that their data is secured for life, because, all their data are being stored and backed up in the cloud. ERP secure all data from unfortunate natural mishaps such as crashed system, theft, natural disaster such as fire, flood, earthquake and so on.
Also, It stores all financial details in the cloud using bank level security which helps you as a user, protect confidential information from being accessed or utilized by unauthorized persons.
Types of ERP
1. General ERP
This type of ERP System has the general functions that cuts across all industries such as Accounting, HRM, CRM, Payroll etc.
It makes provision for integrating other software that will better serve and match various industry needs. Over 60% percent of ERP vendors are generalists.
2. Industry-specific ERP
This is also referred to as Vertical ERP which is designed for various industries. That is, it is specially modified to suit the unique needs of an industry. For example, banks ERP system can be designed differently from that of schools.
3. Open-Source ERP
Open-source model of ERP solutions gives organizations public access to the ERP Source code. Unlike in the case of closed source programs which requires payment for licensing, or customization services, open-source ERP allows it users to update features, develop features and make customizations as they deem fit without having to make extra payment to the original ERP vendor.
4. On-premise ERP
This is the earlier version of ERP. This ERP program is quite complex and requires high-end computers for It is only accessible from a physical location. That is, accessible from a company’s own computers and servers. However, it has drastically lose it value as organizations are opting to cloud-based ERP.
5. Web-Based, or “Cloud” ERP
This type of ERP is runs on a remote server. That is, it gives you unlimited access to a company’s database since you can access it from anywhere at any time, on the phone, tablet, iPad and computer.
6. Small Business ERP
Small business ERP is also known as Lightweight ERP just as the name implies. It does not deliver a fully integrated system which make it serve some of the basic day to day operations of a small business and leave out the rest. However, many small business ERP vendors make provision for integration for scalability purpose.
ERP Vendor in this category help small businesses partake in the benefits of an ERP System by giving them a model that suits them at a cost-effective price.