Is your organisation built on solid foundations? Or does everything look good on the outside, while the processes behind the scenes are far less structured?
An ERP system provides a solid foundation for the organisation of the future. With this software, all your business processes are seamlessly connected. But how exactly does it work? And what can ERP software do for your organisation? AFAS explains.
For a future-proof organisation, departments and processes need to be in sync. You can compare the performance of your business processes to a relay race. If one runner falls behind, the next runner has to make up the difference.
The same applies to business processes. For example, if an employee does not register project hours, the finance department cannot create the invoice on time. Several people are then left with extra work, and it becomes unclear who did what.
The days when departments could operate completely separately are over. Today, organisations have so many interconnected processes that departments depend heavily on each other. By working with an ERP system, you support that connection and gain control over all your business processes.
Without an ERP system, every department often has its own tool, system or process. This could be a dedicated software solution, a spreadsheet or even a manual process. These tools do not work well together, even though they rely on each other’s data.
If department A needs information from department B, an Excel file may be sent by email or even printed. The data is then manually entered into the software used by department B. This is time-consuming, inefficient and prone to error.
It is much more efficient when department A and department B work in the same software, so all relevant information is freely available to the employees involved. That is exactly what ERP software makes possible. You share one database for the most important business processes in your organisation.
ERP stands for Enterprise Resource Planning. An ERP system is the heart of your organisation. ERP software brings together business information, activities and processes from different departments in one tool. Digital processes are standardised and automated, allowing employees to focus on their core tasks.
In ERP software, all business processes and activities come together. An ERP package consists of different modules, with each module supporting a specific task or department. Because all these modules are part of one software package, every department can work together seamlessly. In practice, this may look like this:
No matter which module you work in, the source data always comes from one ERP system. In practice, it is uncommon for an organisation to work with multiple ERP systems.
A simple definition of ERP is:
ERP is software used by organisations to support and manage business processes across the company.
At AFAS, we like to make this definition a little more tangible:
An ERP system is the heart of your organisation. ERP software brings important business information and processes from different departments together. Digital processes are standardised and automated so employees can focus on their core tasks.
A system that brings all your business processes together. Sounds good, right? An ERP system offers many benefits, but there are also points to consider before choosing ERP software.
Working with ERP has many advantages. Once your organisation starts using it properly, it is hard to imagine going back to the old way of working.
The foundation is simple: you bring all business processes together in one tool. At the same time, you connect all important business information. This means administrative processes are handled in the same system.
Because everything is stored in a secure cloud environment, employees have access to the database anytime and anywhere. They log in once and then have the relevant information they need.
Because you work with one database, business processes are aligned seamlessly. For example, payroll administrationbecomes a logical result of HR administration. Manual actions or complicated integrations between separate systems are no longer necessary. And if you do need to connect a separate tool, the ERP system can still serve as the central foundation.
With ERP software, you can do more than digitise processes. You can also automate a large part of your business operations. Automation helps keep costs manageable and allows employees to work more efficiently than ever. It also helps them do more meaningful work, because they can focus on their core tasks.
Finally, you always have insight into the performance of your organisation. ERP data can be retrieved quickly from the database and displayed in dashboards. This gives you real-time insight into how your organisation is performing.
ERP offers many benefits and can make your organisation more efficient from top to bottom. Still, there are two aspects to think about carefully in advance: implementation and costs.
Implementing an ERP system has a major impact on your organisation. Because it affects all business processes, every employee, department and management layer will be involved. Some employees will embrace the change, while others may feel resistance.
That is why the implementation process can sometimes be seen as a disadvantage. Processes that people have been using for years may suddenly need to change. That takes some getting used to. Employees may also worry that they will not understand the new system.
Clear communication and good explanation are crucial during implementation. This helps reduce most concerns. The positive side of implementation is that it is also the perfect moment to streamline work processes and make significant improvements.
“If you can replace ten systems with one system, the ERP system can actually become more cost-effective.”
Costs can also be a barrier. The Excel sheets, paper files and timesheets you currently use may seem inexpensive or even free, while ERP software requires investment. You also need to invest in a successful implementation process.
However, it is important to focus on the long term. If you currently work with ten different tools, an ERP system can ultimately be the more cost-effective option.
For larger organisations, this is often easier to justify. Smaller companies may find it more challenging to invest in a complete ERP setup. That is why it is important to choose a solution that fits the size, needs and growth phase of your organisation.
Still, you can ask yourself whether these disadvantages are truly disadvantages if your goal is to move your organisation forward.
A good ERP system offers many benefits, but you need to plan for implementation and costs. If your organisation is built on spreadsheets, paper files and manual timesheets, you are essentially building on an unstable foundation. ERP provides a solid foundation for a future-proof organisation.
When you digitise business processes, you generally have two options. You can choose an ERP system, or you can use a dedicated tool for each process. Such a dedicated tool is often called best-of-breed software, because it is designed specifically for one task.
How does this work? You choose a best-of-breed tool for each department or process. For example, sales and CRM are managed in tool X, financial administration in tool Y, and project and time registration in tool Z.
These tools may perform their individual tasks well. But they do not necessarily bring calm and clarity to your organisation. All tools need to be connected, and that does not always happen. Integrations between different software programs can be expensive and complex. In addition, data is less transparent and processes rarely flow seamlessly from one department to another.
ERP means all key processes in one tool.
Best of breed means multiple separate, dedicated tools for each process, sometimes connected through integrations.
Smaller organisations with up to around 15 employees can often still work with separate tools. But as a company grows in revenue and employees, an ERP solution quickly becomes the more logical choice.
An ERP program is built in modules. Each module supports a specific task or process. A good ERP provider helps you digitise your business processes and bring them together in the software. Many things are possible, but the modules you choose depend on your industry and organisation.
Common ERP modules include:
Because all information in the system is connected, daily processes can be automated. This is done with workflows. ERP software often includes standard workflow and AI templates, but you can usually design your own workflows (with AI) as well. This allows you to tailor workflows to your organisation.
Examples of processes that can be automated include:
By automating processes, you reduce the risk of errors, prevent overflowing inboxes and avoid scattered task lists across the organisation.
An ERP system is essential for any organisation that wants to be ready for the future. It is a key part of efficient business operations, regardless of the industry you are in.
From small and medium-sized businesses to multinationals, and from healthcare organisations to accountancy firms: digital organisations have the future.
Your organisation needs to operate like a well-oiled machine, where everything and everyone works together seamlessly. Streamlined processes lead to satisfied employees and customers. Data also needs to be available to the right people at the right time, so teams can work effectively.
That is what you achieve with an ERP system.
All administrative business processes in your organisation are connected. From managing customer relationships to paying employees, and from registering project hours to financial administration. That is why AFAS developed one complete ERP system in which these activities take place and come together. The result? You no longer lose time on duplicate data entry, you work highly efficiently and you can focus on your core tasks with confidence.