ERP Application 101: Modules, Features, Deployment & Trends

Businesses switch to ERP applications when facing three key challenges: inefficient data management, siloed operations, and scalability limitations. So what are the robust offerings that these systems bring to the table?

In this article, we’ll explain everything a beginner needs to know about an ERP application.

ERP Application Modules & Their Real-World Adoption

1. What is an ERP application?

An enterprise resource planning (ERP) system is software that assists businesses in automating and managing key procedures to achieve maximum efficiency. The software streamlines operations by coordinating data flow between multiple activities with a single source of truth. To put it simply, an ERP can integrate a business's operations, reporting, production, supply chain, financials, human resources, or sales functions within a single platform.

Most businesses have several management systems in place, but these systems are not seamlessly connected to support future expansion or go beyond routine operations. While there’s no all-up solution for every business process, ERP technology is getting better and better at bringing processes together, with its three key benefits as below:

• Streamline processes by eliminating human data entry errors and automating repetitive processes. As a result, the entire organisation realises greater production and efficiency.
• Facilitate data-driven decision-making by giving instant access to accurate and latest information. It helps with risk mitigation, resource allocation optimisation, and identifying areas for improvement.
• Simplify procedures, enhance data visibility, and automate tasks to foster flexibility and responsiveness under changing market conditions. This allows businesses to react swiftly to opportunities and obstacles.

2. What are ERP modules?

ERP systems, unlike traditional systems, are versatile, offering a range of function-specific modules to handle specific areas of your business. Versatility is a critical success factor.

As previously indicated, each ERP module is a software component that manages a unique business function, such as supply chain, finance, sales, or e-commerce. These modules enable you to build a system specifically suited to your unique company scenario.

ERP modules integrate seamlessly with one another to streamline your business processes. Here are seven core suites of modules that cater to specific business functions:

• Finance & Accounting
• Sales, CRM & Marketing Automation
• Website Builder & E-commerce
• Inventory & Warehouse Management
• Human Capital Management (HCM)
• Manufacturing Execution
• Project Management

Learn the details in our complete guide to ERP modules.

3. ERP system examples across industries

For a business to compete and grow, it needs precise, up-to-date information and efficient business workflows, for any industry. However, different companies depend on their ERP software for different purposes. Here are ERP examples of three prominent industries:

• On-time delivery is a priority for distributors, wholesalers, and 3PL companies. These companies all seek to lower their distribution spending, maximise inventory turnover, and accelerate order-to-cash times. To meet these objectives, they require an ERP to integrate the management of inventory, purchasing, and logistics. The system will help automate procedures catering to their specific needs.
• Manufacturing businesses of all types (discrete, batch, or continuous) depend on supply chain and ERP applications to optimise product quality, navigate customer returns, minimise overtime costs, manage assets, and more. Additionally, to maintain end-to-end inventory control, the ERP helps track stock movements, identify high- and low-performing products, and improve procurement management.
• Retail has experienced a major revolution with the integration of e-commerce, other sales channels and physical retail operations. An ERP application allows for data integration - which enables self-service tools for stakeholders to identify, configure, purchase, and ship products. Implementing a modern ERP helps retailers enhance online conversions, cart abandonment rates, average order values, and customer lifetime value.

6 Core Features Of ERP Application

Your ERP application is most likely full of features that have yet to be explored. Beyond the core features like accounting and inventory control, many businesses ignore the additional capabilities that lie untapped within their ERP. Those untapped areas may improve efficiency and greater agility:

Provide real-time insights & reporting

Real-time data access is one of the best offerings of a modern ERP application. This access is typically enabled through integration with various operational systems such as logistics, production, and sales. ERP also allows users to create reports customised to their unique needs. With its versatility, users can thoroughly analyse single data points and spot the trends that might not be visible in typical reports.

Enable customisation & scalability

ERP applications are designed to be adaptable to unique needs. Users can tailor their workflows, processes, and user interfaces. As a business grows, ERPs can scale to handle high data volume and complexity. It can also integrate with other software such as CRM, HCM, or financial apps, facilitating smooth data flow with a holistic view of the entire organisation.

Automate manual tasks

Your organisation may be unaware of the ERP application's automation capabilities. Especially, building workflows and approval processes may require technical knowledge which keeps some businesses from utilising the hidden potential. Keep in mind that most ERPs are developed to automate manual and time-consuming tasks to free up time for your employees.

Integrate with third-party applications

Your teams may overlook the benefits of integrating third-party applications. Modern ERP systems are developed to operate seamlessly with a variety of third-party apps. Those apps can be integrated with your ERP, i.e. integrating ERP and CRM, marketing automation and e-commerce platforms, etc. Unfortunately, many businesses skip these opportunities due to security concerns or complex integration processes and remain aware of professional services that could help.

Utilise mobile apps for on-the-go access

A lot of users don’t know that ERP’s mobile apps exist. Modern ERP vendors develop mobile applications that allow users to access data in real time. This enables your employees to stay active and efficient even while on the move. However, some businesses limit the mobile usage of ERP due to employee data security concerns on mobile devices. 

Other advanced management features

Besides the previous mentions, your ERP application may include several robust features tailored to different departments or business functions:

• Machine learning (ML) & artificial intelligence (AI): ML & AI are tools that help businesses extract deeper insights from data, find trends and discover hidden patterns.
• Business intelligence (BI): BI tools are technologies used to conduct comprehensive data analysis and create interactive dashboards for data visualisation.
• Regulatory compliance management: Some ERPs provide features with compliance software to help firms stay up-to-date on industry regulations and reporting needs (i.e. Odoo Accounting Localisation). They are incredibly beneficial and convenient if you’re in highly regulated industries like healthcare or finance.

Maybe you’re interested: Odoo ChatGPT Integration - 9 Best Practices For Effortless Workflows.

3 Main ERP Deployment Models: Pros & Cons

There are 3 main options to deploy a modern ERP application: on-premises, cloud-based, or hybrid scenarios that combine both ways. Let's explore their key advantages so that you can choose a deployment option that best suits your company.

• On-premises: This is the classic software deployment model where you are in complete control. Typically, you can install the ERP application wherever you want in your data centre. However, your IT team is responsible for installing and maintaining its software and hardware. Many businesses are moving from on-premise to cloud ERP as an advancement. This upgrade process requires careful preparation and a thorough evaluation process for ERP and deployment alternatives.
• Cloud-based: Cloud-based means that the ERP application is provided as an internet-based service and hosted in the cloud. Typically, the ERP vendor handles security, upgrades, and routine maintenance on your behalf. Cloud ERP is currently a commonly used deployment approach for a variety of benefits, such as less upfront and maintenance costs, robust security measures, scalability and agility, simpler integration, and more.
• Hybrid: The hybrid cloud ERP option is available for businesses that need a combination of both to satisfy their needs. Here, you will have both on-premises and cloud-based ERP apps and data.

The Future Of ERP Application - Emerging Technology Trends

ERP applications form the foundation of many businesses. However, many of them fail to realise the full potential of their ERPs and ignore cutting-edge technologies. This results in missed growth opportunities due to limitations in scalability or user experience. Here are some of the latest technologies that you can consider to improve your ERP and get a competitive advantage:

• Cloud Computing: As numerous reports have noted, cloud-based ERPs continue to be growing in popularity. They provide scalability, remote access, and lower IT infrastructure expenses. These advantages make them particularly beneficial to companies of all sizes.
• Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are quickly reshaping industries including ERPs. These innovations can automate laborious jobs, forecast demand shifts, reveal potential data threats, and simplify processes via real-time analytics. AI-powered chatbots, for example, can respond to user queries inside the ERP system, freeing IT support workers from their workload.

• Digital Twin Technology: This technology creates virtual versions of physical assets or procedures. Businesses that integrate digital twins with ERP systems can receive real-time data on equipment performance, estimate maintenance requirements, and optimise production plans. The method has high potential for use across industries such as manufacturing and supply chains.
• Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies are gaining more new users in the ERP era. AR overlays may offer technicians detailed instructions for intricate repairs as they observe the actual equipment, increasing efficiency while decreasing errors. VR simulations may be utilised to train employees on ERP features or to create virtual showrooms that showcase products to customers.
• Blockchain: While it is still in the early ERP stage, blockchain has the potential to considerably boost data security and integrity. Its distributed ledger technology can be used to safely record inventory movements, handle supplier contracts, and confirm the validity of product components. This is especially true in industries with strict compliance standards.

Avoid Underusing ERP Application

Even with successful ERP application deployments, many companies continue to struggle to reach their full potential. This can be due to underutilising functions, difficulties in user adoption, lack of expertise in ongoing optimisation, and poor change management.

Note that an effective ERP is more than simply software; it is a strategic investment in your company's growth. As a qualified ERP partner, we are proud of our ability to thoroughly understand your requirements and work with you to establish a successful implementation strategy.

ERP Application - Frequently Asked Questions

1. Who are ERP application consultants?

ERP application consultants are professionals who assist your business with the installation, customisation, and upgrade of ERP applications. They can be your ERP vendors or third-party agents who provide ERP services. These consultants often have extensive expertise in industry best practices and ERP solutions. Learn more about the key offerings of ERP consulting services.

2. What are the differences between ERP and CRM?

ERP (Enterprise Resource Planning) systems manage core business functions like finance, HR, and operations. CRM (Customer Relationship Management) systems focus on managing customer relationship data. While ERP provides a more complete view of your organisation, CRM focuses on customer management and revenue growth.

3. How do you implement an ERP system?

The process of implementing an ERP involves multiple steps, including needs analysis, software selection, customisation, data migration, testing, training, and go-live. Careful planning and execution are crucial for a successful implementation.