Enterprise Resource Planning

What is ERP?

What is ERP?

Enterprise Resource Planning helps you:

  • Integrate and synchronize business processes
  • Share real-time insights through a centralized data repository
  • Automate tasks through connected workflows
  • Comply with industry and regulatory standards
  • Expedite customer service and tailor messaging
  • Analyze company financial health across departments

Integrate and synchronize business processes

Enterprise resource management (ERP) is a method of interweaving various front office and back office departments and workflows.It contains a range of capabilities, and its main purpose is to streamline operations, generate revenue and increase productivity through this connectivity.

For example, with ERP software, users could look at the budgets of different projects to help anticipate the cost of a future project. This reduces the amount of time spent negotiating for a certain spending goal. Another example would be the ability to look at the status of machines in the warehouse, along with the number of unfulfilled orders to measure optimal production speed.

ERP also ensures that everyone in a company is on the same page. If a product is out of stock or has been canceled, the sales staff could see that information in the ERP system and refrain from selling those items. Overall, ERP can help boost efficiency, increase revenue margins and reduce communication errors through the integration of various processes. ERP often includes the following workflows:

Share real-time insights through a centralized data repository

When people talk and write about ERP, the centralization of data and real-time information is one of the most prominently mentioned benefits. Because an ERP system contains data from across a business in one location, users can easily access insights from other areas of a company to inform analyses. This “desiloing” of information leads to more accurate insights and can lead to improved workflows.

For example, if the financial team has data insights on how many projects run over budget as segmented by department, this information could be easily accessed by the departments themselves without the need for the financial team to compile a special report. This increases productivity and information accessibility. In fact, some new data points might even be revealed that weren’t easily available when the information was contained on different computers and siloed by department. Alleviating the burden on other teams to compile statistical documents related to certain business aspects is a key benefit of ERP.

Automate tasks through connected workflows

Automation is a term that gets thrown around by people in the technology sphere all the time, but how can it actually work in a software system? ERP is a great example of a tool that leverages automation at its core. ERP systems are excellent candidates for workflow automation due to their emphasis on operational connectivity. Because these connections are already established, it’s relatively simple to develop automated processes.

Some automated functions might include automatic reordering of materials from a best-price vendor when inventory levels reach a set point. This helps alleviate the number of tasks that are on the plate of your staff members, therefore freeing up time for other duties that they might not have time for otherwise. ERP software often automates and streamlines financial reporting workflows. When sales orders are entered into a system, financial information can be automatically sent to the general ledger to track revenue. This also reduces keying errors and duplicate data entry issues.

Comply with industry and regulatory standards

Legal and industrial compliance are essential facets of a successful business. Many ERP vendors offer products that contain tools to help companies adhere to regulations to save money and time. Specifically, this may include quality management features that flag products that will need to be inspected further to ensure regulatory compliance.

Some vendors also allow quality managers to mark items that don’t pass inspections so that employees can go back to the drawing board and figure out what needs to be changed to meet necessary standards in the future. Here are some of the rules that ERP can help businesses comply with:

  • GAAP
  • IFRS
  • Importer Security Filing (ISF)
  • RoHS
  • Conflict Minerals

Expedite customer service and tailor messaging

Some ERP vendors enable users to optimize the customer experience through targeted messaging and retained sales information. By tracking the conversations that customers have had with sales representatives and the products they’ve purchased, you can improve customer experience by personalizing communications and reducing reiterative messages.

These programs can also store payment information to make the actual purchase process easier for all parties involved in a transaction. Here are some of the specific capabilities you might find in an ERP program’s CRM tool:

  • Contact Management
  • Marketing and Campaign Management
  • Email Integration
  • Pricing and Tracking
  • Salesforce Automation
  • Pricing and Tracking
  • Marketing Resource Management
  • Order Management

Analyze company financial health across departments

Financial tools are the bread and butter of ERP. Without financial data included in your system, ERP operates in a bubble that doesn’t account for actual market conditions and company standing or positioning. It’s a core tenet of ERP that is typically put into a system before any other functionality.

There is a diverse range of financial tools that vendors can include in their programs, so if you decide to purchase an ERP, it’s important to make sure that all of the features you need can be implemented into the system you buy. Here are some of the financial reporting capabilities that help make ERP such a valuable tool:

  • General Ledger
  • Accounts Payable
  • Accounts Receivable
  • Budgeting
  • Bank Reconciliation
  • Invoicing/Billing
  • Support for Multiple Currencies
  • Cash Flow Management
  • Payroll


How Do ERP Systems Work?

ERP systems work by creating a centralized center for various business processes to operate. This system contains data from different workflows and uses this information to automate tasks and generate useful insights. Users can select the tools that they want to have included in their solutions based on their individualized business needs. These programs can be installed through different methods such as in-cloud, on-premise or hybrid deployment, making them an effective option for businesses of a variety of sizes.

How Do I Know I’m Ready for an ERP System?

There are a few key signs that your business might be ready to implement a system. Here are some of the factors that might indicate it’s time to upgrade your operations

  • Manual workarounds for business processes
  • Missed revenue opportunities due to too much on your plate
  • Customers annoyed at ineffective customer service
  • Inability to measure data across the organization
  • Large amount of time spent on tasks that should be simple

What Are the Different Types of ERP?

There a few different types of ERP deployment — on-premise, cloud-based and hybrid. The option that is best for your organization depends on factors such as needed accessibility, current workflows and level of investment. Now let’s go over the basics of these deployment methods so that you can decide which option is best for your business.


On-site deployment is a method of installation where the vendor or one of its partner organizations come to your company and install the software directly on staff computers. On-premise software is available to users when they are using specific devices. One of the key benefits of this deployment method is the ability to use the program when an internet connection isn’t available and an increased level of security because the platform will be hosted on your company’s own servers.

However, the initial investment required to deploy ERP software on-premise is relatively high compared to cloud-based solutions, which can be a dealbreaker for some businesses. The system also might not be available at any time and in any location due to the restrictions of on-site deployment, therefore reducing accessibility.


Cloud-based ERP allows you to access the program from any location and at any time as long as an internet connection is available. Depending on the priorities of your company and your business model, this might sound immediately attractive. The upfront cost of implementing cloud-based ERP is lower than that of an on-premise solution.

However, some businesses don’t like the idea that their information is in the hands of a different company and that it’s ultimately up to the ERP vendor to retain security. However, when considering this argument, it should be noted that cloud ERP is typically a very secure solution and that without proper privacy methods, cloud ERP wouldn’t be sustainable.


A hybrid deployment method is just as it seems — a mix between on-premise and cloud-based deployment strategies. With this method, companies can install core programs on-site while leveraging the cloud for additional features such as the “latest and greatest” add-ons. This helps businesses ensure consistency and reliability through the on-site portion of their package while also gaining flexibility due to the ease of adding new functions to the program.

What Are the Latest and Greatest ERP Technologies?

With the rapid development of new technologies, it makes sense for ERP vendors to follow suit and implement these new tools into their systems. Here are some of the technical abilities you might look for during the ERP selection process.


ERP is uniquely primed for automation due to its centralized business processes. This technology’s main benefit is its ability to increase productivity by reducing manual workflows. Examples of operations that can be automated include sending employees direct deposits for their work, reordering of materials based on set inventory levels and the monitoring of quality assurance to ensure adherence to industry and regulatory standards for items that you produce.

Artificial Intelligence (AI)

AI functionality can help businesses with tasks such as demand planning and forecasting to maximize revenue. This tool can look at historical data and processes to estimate the amount of goods customers will want, and then it can use this information to reduce inventory levels and product spoilage. Additionally, this tool could assist in identifying bottlenecks in the production system so that you can hasten workflows and alleviate any hindrances to your operations.

Internet of Things (IoT)

The internet of things is an extremely useful component when included as part of ERP. This technology is basically the connection of various physical objects through the internet. An example of how this looks in ERP could be through RFID tracking of objects and the monitoring of machine downtime. By connecting these devices to the internet, you can develop insights about them without being in their proximity.

ERP has a storied history. Although Gartner first introduced the term in 1990, it stems from MRP or material requirements planning systems that existed in the 1970s. MRP was focused mainly on manufacturing processes. However, users eventually started requesting integration with other tools such as finances, HR, sales and marketing. Therefore, ERP software was introduced to facilitate operations both in the front and back office. As technology changes, so does ERP. This is why it’s important to stay up-to-date with the latest features by selecting a vendor that leverages new functionality and methodology.

How Do I Select an ERP System?

When selecting an ERP that is right for you, it’s important to keep a few things in mind. You should consider your operational needs, the deployment method you seek to use, the size and industry that your company is in and your budget. These are just a few of the factors that can make or break whether or not a vendor belongs on your selection list.

The process of choosing an ERP can be arduous, which is why we at SelectHub have created an easy-to-use requirements interface to help you find the vendor that best fits your business needs. If you’re not quite ready for that, we’ve got tons of other resources to guide you along the way, whether it be our ERP Requirements Checklist or our list of ERP advantages and disadvantages.

Have a question about which software vendor is right for you? We’d love to help! Reach out to our team for individualized recommendations by messaging [email protected] or via phone at 877-692-2896.

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ERP articles are written and edited by:

Mariah Hansen

Lead Editor

As the lead editor at SelectHub, Mariah edits and manages content for more than 40 different software categories, as well as writing for a couple of them herself.

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Madeline Reinbolt

Market Research Analyst

Madeline Reinbolt is a Market Research Analyst at SelectHub. She writes content for Enterprise Resource Planning (ERP), Employee Performance Management and Recruiting.

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Thought Leaders

SelectHub has sought out and invited thought leaders to contribute to our ERP Industry articles and resources. These thought leaders ensure we deliver quality content with the most accurate information, focusing on what matters most. No thought leader is compensated for their contributions, but shares our belief that information should be democratized so everyone can make the best decision.

Laurie McCabe

Co-founder and Partner, SMB Group

Laurie brings more than 25 years of experience in the IT industry to her current role as Cofounder & Partner, SMB Group. Laurie has built widespread recognition for her insights in the small and medium business (SMB) technology market.

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Lisa Anderson

Founder and President, LMA Consulting Group

Lisa Anderson is the founder and president of LMA Consulting Group, a consulting firm that specializes in manufacturing strategy, end-to-end supply chain transformation and technology adoption that maximizes the customer experience and enables profitable, scalable, dramatic business growth.

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Eric Kimberling

CEO, Third Stage Consulting

Eric Kimberling is one of the most recognized and respected independent ERP systems experts in the world, giving unbiased advice to clients for over 20 years.

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Ed Cowsar

CEO, OspreyData

Ed’s more than 30 years of leadership and success in a variety of industries includes a unique combination of expertise and experience with product design, sales, engineering, operations, change management and innovation for technology and services firms, as well as highly-regulated industries.

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David Haimes

Senior Director, ERP Cloud Development

David Haimes is a senior director in the Oracle Cloud Applications Research and Development Organization, focusing on next-generation functional and technical architecture.

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David Dozer

CTO, Blaze IT

David Dozer is a business consulting and IT specialist with more than 15 years of experience in the enterprise software realm.

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Shelly Gore

ERP Architect, A Bigger View

Shelly Gore is CEO and co-founder of A Bigger View. For over 25 years, she successfully designed and implemented complex IT and Cloud-Based ERP systems for corporations in North America and Europe.

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Grady Brett Beaubouef

Business Value Realization Director, Oracle

Grady Brett Beaubouef is an ERP expert with 20 years of industry experience. He works as a Business Value Realization Director at Oracle

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Harsha Sarjapur

Co-founder, InfoSourcing

Harsha Sarjapur is the co-founder of InfoSourcing Inc., an ERP solution provider that assists businesses of all sizes with the implementation of ERP solutions. He has worked in the ERP industry for the last 20 years.

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Erik Kiser

CEO, Orderful

At 25 Erik started a consulting firm focused on writing EDI and B2B integrations for manufacturers. Through scaling the company he realized that there is a great opportunity to improve business for the manufacturers by providing a software hub approach.

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Chuck Langenhop

Senior Director, CFO Advisory Services

Chuck Langenhop is Senior Director with CFO Advisory Services in Richardson, Texas. His experience includes change management, process reengineering, ERP selection and implementation, and financial planning &

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ERP Trends: What You Should Know for 2020

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An ERP software system is often one of the biggest investments a company will have to make. Not only is it a major financial decision, but an effective solution can impact all parts of your business, like human resources, accounting, manufacturing, marketing and more. As such a critical component of business, buyers should research not only what’s currently available, but also what ERP software trends are coming down the pipeline.

To help our readers out (and sate our own curiosity), we spoke with several leaders about what ERP trends we might see in 2020 and the years to come. Between a movement to the cloud, disruption cycles, competition from Amazon and more, it looks like 2020 is shaping up to be an exciting year for ERP.

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Food and Beverage ERP Software: Challenges, Opportunities & Selection Tips

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The food and beverage industry is evolving rapidly. A whole new set of consumer demands has recently emerged due to changes in interests and technological advances. Trends like health and wellness, shifting lifestyles, changing preferences, food safety, sustainability and technology have all received a heightened amount of visibility. In addition to these trends, we have mounting concerns of ever-changing and new regulatory acts as well as food safety. All of these challenges can be managed with the investment in technologies such as an ERP software system (enterprise resource planning)

Let’s break down how food ERP software can aid in these challenges.

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Top ERP Predictions for 2020

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The next year will continue to present businesses with the supreme challenge of operating in an environment, both globally and domestically, that’s fast-paced, highly competitive and unpredictable. These business conditions aren’t new and they have, in fact, driven many businesses to reassess traditional business models, embracing innovative and, in some cases, unorthodox business solutions.

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SME Software: The Best Accounting Software for SMEs


Imagine what would happen to your business if you woke up one day, started running through your balance sheet and discovered huge discrepancies. (Houston, we have a problem.) Accounting is a fundamental part of running a successful business, and accounting software for SMEs — small and medium-sized enterprises — can often mean the difference between business bang or bust. Use the right SME accounting software and everything runs like a well-oiled machine. Choose the wrong one, and you’ll break the bank — literally.

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Epicor vs NetSuite: Which ERP Software is the Winner?

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We recently compared two Tier 1 Enterprise Resource Planning (ERP) systems, SAP and Oracle. But what if your company doesn’t need a Tier 1 solution? If you go with the big guys, you may find yourself stuck with a brutally complex software, hoping that your processes grow into your ERP software. Instead of taking that risk, it’s more advisable to go with a Tier 2 ERP that’s predominantly aimed at mid-sized businesses. That’s when a lot of companies start to compare Epicor vs NetSuite.

So if you’ve narrowed down your selection to Epicor ERP and NetSuite ERP, you’re in the right place. We’ve put together a comprehensive and detailed comparison of the two systems to help you determine with confidence which is best for your business.

Kim O'ShaughnessyEpicor vs NetSuite: Which ERP Software is the Winner?
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Top 20 Machine Shop Management Software

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Machine shop software is an enterprise resource planning program that automates a variety of scheduling, reporting and tracking tasks. The best machine shop programs include manufacturing resource planning, which coordinates orders with manufacturing schedules. Since warehouse management is a challenge for many companies, it is important to understand the benefits of warehouse management software as an inclusion. Many machine shop software programs today run on the cloud. When you debunk the common cloud ERP myths, managing a machine shop with cloud-based software is easier than ever.

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The Best Cloud Manufacturing ERP Software of 2020

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Cloud manufacturing software is becoming more and more sought-out by companies with heavy production components. Its ability to provide access anytime and anywhere is especially beneficial to companies in this sector, as it allows employees to look at data from various locations as long as internet access is available.

Lindsey JenkinsThe Best Cloud Manufacturing ERP Software of 2020
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Most Important ERP Features List: Review of ERP Capabilities

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Enterprise resource planning (ERP) ranks high among the most comprehensive, powerful data management solutions available. For many businesses, ERP is an ideal solution for data analysis, automation and full-scale infrastructure integration. Yet, with many systems available, each seemingly tailored to different industries, selecting the right ERP software solution can seem overwhelming. But don’t get lost in the sea of bells and whistle, there are a few core capabilities every ERP should offer.

SelectHubMost Important ERP Features List: Review of ERP Capabilities
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Top PLM Systems: The Ins and Outs

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A product lifecycle management system is a powerful solution that manages every aspect of a product’s digital life. PLM software can integrate data, workflows, business systems and people in an extended enterprise by facilitating the internal and external collaboration demanded by modern manufacturing environments.

PLM systems can help users gain greater visibility and control over the design process. With automated features that reflect changes throughout the product lifecycle, ensure legal compliance and develop statistical insights, PLM systems can streamline production operations.

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Accounting Software Requirements Checklist

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Thanks to automation and AI, accounting software is one of the most transformative tools a business can adopt. ClientWhys CEO Lee Reams remarks, “Free from the tedious tasks, accountants will be able to focus their efforts on developing KPI’s, budgeting for growth and assisting in improving cash flow: more CFO like advice without the cost.”

But they’re also simple solutions that exist if you’re not amassing a team of mini-CFOs. It’s really up to you to decide what your business needs from your next system. To guide you through this process, we’ve created an accounting software requirements checklist. Use it to determine which accounting software features you need and which you don’t.

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Postmodern ERP: Just Another Buzzword?

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Postmodern ERP is a relatively new phrase in the IT lexicon. The term was created by Gartner to describe industry-wide changes in how companies implement and use ERP software. There is a difference between traditional and postmodern ERP models. In this article, we will explore what exactly post-modern ERP is, what some of the benefits of it are and what types of companies might especially thrive by using this software strategy.

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The Most Important Accounting Software Features

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Accounting definitely doesn’t have a reputation as the most exciting business function, but that doesn’t diminish its importance. Accounting is the process that keeps the world going, both in business and our everyday lives. That’s why it’s imperative users have access to all the accounting software features they need to get the job done. But what accounting features do they need from accounting software?

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Epicor vs SAP vs Infor ERP: Which ERP Software is the Winner?

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Enterprise Resource Planning solutions are a vital part of today's business landscape. Any company of significant size or with complicated customer and product rosters needs these kinds of software to help handle many diverse aspects of business management. Here are some comparisons of three popular ERP systems that will help human decision-makers to keep tabs on everything from supply chains to customer relationships. Compare Epicor, SAP and Infor ERP Pricing against Your Needs Epicor-vs-SAP-vs-Infor-ERP


Epicor's ERP system offers on-premise, hosted or cloud-based versions, with specific management components for financial management, customer relationship management, sales management, human resources, supply chain management, and more. With real-time mobile capability, Epicor brings all sorts of business information directly to those who need it. One of the strengths of Epicor’s ERP system is its customer relationship management suite. Epicor offers contact and lead management, with mobile solutions and integration with Salesforce, a CRM leader. Salespeople get assistance with estimate and quote management processes. There is a quote tracker, tools to handle ship-to addresses, product cross-referencing, and credit check tools. On the human resources side, Epicor ERP streamlines HR, for instance, by helping leaders to analyze absence patterns and send time off request to the right parties. For supply chain management, tools like Supplier Approval help to automate parts of the vendor process. Receipt handling and purchase order tracker tools provide a documentation chain for important transactions. Tools like Buyer’s Workbench and RFQ Decision Wizard essentially walk people through computer processes. Epicor’s comprehensive platform offers lifecycle support for business operations.


The SAP suite for ERP also offers the same top-level tool categories for CRM, financial, human resources, supply chain and product handling, among others. Beyond that, SAP also stands on its relationships with other providers such as Et Alia, to offer what it calls the “SAP Ecosystem” -- a greater network of tools for handling complex ERP needs. The fact that SAP owns and supports Crystal Reports, a traditional business reporting format, doesn't hurt. SAP also touts its HANA in-memory setup which allows for faster and more robust analytics and business intelligence use. Its Business Objects suite for business intelligence also attaches to its other enterprise solutions in order to mine data for actionable results. In the ERP solution, SAP's Business All-In-One supports things like customer relationships and supply chain management, with fast implementation and what SAP calls an affordable cost of ownership. Over the SAP NetWeaver platform, Business All-In-One provides data migration and dashboard views to support all sorts of business decisions. A Business ByDesign ERP tool runs on a wide variety of operating systems, to provide flexibility for business infrastructure.

Infor Syteline

The Infor Syteline ERP suite also has all of those top-level components promoted by the other two choices -- customer relationship management, payroll, financial, and supply chain tools, etc. Infor promotes its CloudSuite ERP set of solutions with a twist – the system provides industry-specialized ERP platforms. That means there's a different set of solutions for manufacturing than there are for restaurant businesses, different tools for automotive businesses, or other service businesses. Infor ERP looks at supporting warehouse management, manufacturing, and the use of technologies, with what the company calls a “360 view” of business data -- demos show KPIs and other elements in accessible graph views, with easy links to detailed reports. Infor CloudSuite also offers a vibrant system of notifications and scheduling tools that can be ported to any device. Tools like Production Planner help with supply-chain lifecycles. Compare Top ERP Software Leaders As part of its design philosophy, Infor offers “horizontal business platforms” and a “dramatically simplified IT landscape” while also pinpointing the needs of a range of industries. For example, in fields like Aerospace, Infor tools incorporate a lot of detail related to documentation, regulations, and compliance with industry standards, a very important aspect of many government-related businesses, and some other fields in the private sector. Infor’s “menu” of options is part of its appeal, especially to some businesses that may not follow a cookie-cutter pattern, or enjoy operating in a more conventional or generic context. Take a look at any of these three leading systems to get tailored and targeted ERP, to start to incorporate the automation and analytics tools that are making it so much easier for businesses to operate knowledgeably today.
SelectHubEpicor vs SAP vs Infor ERP: Which ERP Software is the Winner?
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8 Reasons Why ERP Is Important in 2020


With the global ERP software market expected to be worth $41.69 billion by the year 2020, the impact of these systems is evident. While that number is impressive, those who’ve never used the software may find it difficult to understand why ERP is important to their business. But as globalization squeezes the market for many industries, it’s essential to seek out any and all tools to give your business a competitive edge. For many companies, this is achieved through the use of ERP.

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ERP Case Study: How ERP Software Can Affect Your Business

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ERP software is an old dog that’s doing a pretty good job of learning new tricks. ERP systems were first introduced in the 1990s as an offshoot of MRP software. These systems have since become a widely used tool for businesses to assist in the automation of workflows and the centralization of data and functions. As a program that has been around for about 30 years, ERP is constantly working to adapt to changes in consumer habits. An ERP case study is an effective way to learn more about how modern advancements have impacted real businesses. In this research article, we will take a look at actual ERP implementation examples to see how recent innovation has boosted business.

Lindsey JenkinsERP Case Study: How ERP Software Can Affect Your Business
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SAP vs Oracle: Which ERP Software is the Winner?


With all the research you’ve done so far, your motivation to find the perfect ERP might be waning. But, wait! You’re so close! As the top two solutions on our Enterprise Resource Planning (ERP) Leaderboard, it’s likely that many of you have already narrowed down your choices to these two products. But when deciding which ERP software to invest in for your entire business, confidence is key. Are you fully aware of the difference between SAP and Oracle?

Kim O'ShaughnessySAP vs Oracle: Which ERP Software is the Winner?
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Benefits of Process Manufacturing Software

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Manufacturing software offers a wide variety of functions that can affect businesses in different industries in different ways. For example, there are entire systems dedicated solely to process manufacturing. Process manufacturing software benefits are widespread but depend on the specific features included in a software tool. Factors such as the vendor you go with, functionality included in the program and your preparation before deployment will impact the degree of success that you get out of these systems. So, what are the benefits you could see in your business with the successful introduction of process manufacturing software? Let’s find out.

Lindsey JenkinsBenefits of Process Manufacturing Software
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