What is an ERP system?
Definition, functions and how AI is changing the future

An ERP system is the backbone of many successful companies. It centralizes business processes - from accounting to logistics - and ensures greater efficiency and transparency. But what makes an ERP system so indispensable? How can it make your company more efficient, faster and future-proof?

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Microsoft Solutions Partner Logo

What is "Enterprise Resource Planning"?

The history of ERP systems goes back to the 1960s. Back then, Material Requirements Planning (MRP) was the first solution for production planning. In the 1990s, this evolved into modern Enterprise Resource Planning (ERP for short), which also integrated financial and HR processes. Today, ERP systems are more flexible, scalable and accessible than ever before thanks to cloud technologies.

An ERP system controls and networks all business processes in a company. It creates a central database, increases transparency and improves collaboration between departments.

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Why is an ERP system so important?

Whether in trade, production or services - ERP systems are used in almost all industries. They are particularly valuable in the coordination of complex processes such as:

  • Financial management - bookkeeping, accounting, budgeting
  • Warehouse management - inventory control, supply chain management
  • Human resources - payroll accounting, personnel planning, applicant management

In contrast to specialized systems such as:

  • CRM (Customer Relationship Management) - focus on customer relationships
  • ITSM (IT Service Management) - Optimization of IT services

ERP offers a holistic solution that connects all business areas.

Thanks to modern ERP systems, processes can be designed more efficiently, resources better utilized and companies made more competitive in the long term.

 

 

 

Practical example: ERP optimization with DYCE

The TOPMOTIVE Group, one of our customers and a leading provider of software solutions for the automotive industry, was faced with the challenge of making its invoicing more efficient. By implementing our DYCE apps based on Microsoft Dynamics 365 Business Central, they were able to optimize their processes. The automated processing of a large number of invoices led to significant time savings in accounting:

"Where we used to need half a day, we now only need 20 minutes thanks to DYCE."

Corinna Pape, CFO, TOPMOTIVE Group

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TOPMOTIVE is just one of many companies that rely on our ERP solutions. Our references show that tailor-made ERP systems make a decisive contribution to optimizing processes and securing competitive advantages.

When does a company need an ERP solution?

Wondering if you really need an ERP system? The answer depends on your requirements, but there are clear signals that it is time for a professional system. Many companies start with simple tools such as Excel, but these quickly reach their limits - the so-called Excel trap. A lack of real-time data, manual errors and a lack of scalability make spreadsheets impractical in the long term.

An ERP system becomes essential when your company grows, several departments need to be coordinated or complex data volumes are generated. Companies with international locations, extensive supply chains or the need to make real-time decisions in particular benefit from such a solution.

These departments derive the greatest benefit from an ERP system:

- Finance and accounting:

Automated accounting, payment transactions and controlling save time and ensure precise financial data. Reporting and analysis functions provide you with valuable insights.

- Merchandise management & logistics:

From inventory management to procurement and distribution - an ERP system optimizes your warehouse management and enables seamless tracking.

- IT service provider & software vendors / developers:

Manage projects, licenses and customer billing efficiently on a central platform.

Advantages of an ERP cloud solution

Why should you opt for a cloud-based ERP solution? The answer lies in the numerous advantages that this technology offers. Compared to traditional on-premise systems, cloud solutions stand out for their flexibility, cost efficiency and modern features - ideal for companies of all sizes. In the following, we clearly highlight the key benefits:

Flexibility & scalability: adaptation to company growth

An ERP cloud solution grows with your company. You can easily add modules or adjust the number of users without having to purchase expensive hardware. This means that your ERP system adapts flexibly to new requirements without technical limitations slowing you down.

Cost efficiency: reduced IT maintenance costs

With a cloud solution, you save considerable costs as you do not need your own servers or extensive IT maintenance. Instead of high initial investments, you benefit from transparent monthly billing models. This allows you to keep your IT expenditure under control and use resources more efficiently.

Automatic updates & security: always up to date

Your ERP system always remains up to date in the cloud - thanks to automatic updates with the latest functions and security standards. In addition, the cloud providers' high security measures reliably protect your data so that you can concentrate on your business.

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Market overview: leading ERP providers according to the Magic Quadrant

Gartner regularly publishes the "Magic Quadrant" for ERP systems, in which providers are evaluated in terms of innovative strength, functional scope and market presence.

Here is a detailed comparison of the top 4 providers, based on the current Gartner Magic Quadrant (as of 2024):

Anbieter Stärken Besonderheiten
Microsoft Dynamics 365 Business CentralUser-friendly, ideal for SMEsIntuitive interface, strong cloud integration, flexibly customizable for small to medium-sized companies
SAP S/4HANAPowerful, for large companiesExtensive functions, high data processing capacity, perfect for complex group structures
Oracle NetSuiteStrong financial functions, scalableParticularly suitable for financial management and e-commerce, easy scaling for growth
WorkdayFocus on HR and financial managementSpecialized in human resources and finance, ideal for HR-oriented companies

Microsoft shines with ERP Microsoft solutions that are characterized by user-friendliness and flexibility. For small and medium-sized enterprises (SMEs) in particular, this solution is a hit - it offers intuitive operation, seamless integration with tools such as Microsoft 365 and cloud-based scalability that grows with your business. At Singhammer, we leverage these strengths to provide you with a customized ERP solution that optimizes your processes!

Best-of-breed approach for ERP

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The all-in-one on-premise solution used to be the standard, but today companies are increasingly relying on modular cloud concepts. This combines precisely those components that offer the greatest added value. At Singhammer, we follow this approach and integrate CRM, ERP and ITSM into a standardized platform. This allows you to benefit from the best of different worlds without having to forego a consistent database.

The future of ERP: AI & automation

The future of enterprise resource planning software will be shaped by artificial intelligence (AI) and automation. Tools such as Microsoft Copilot are already changing the way you analyze data and control processes. In the coming years, ERP systems will become more intelligent and autonomous - a major advantage for your company.

The most important developments you need to know about:

  • AI-supported analyses: Microsoft Copilot provides real-time insights, for example on market trends or demand developments, and helps you to react more quickly.
  • Automation
  • Self-learning systems

With solutions like Microsoft Dynamics 365 and partners like Singhammer, you can take advantage of these benefits to make your business more efficient. AI and automation are not a vision of the future - they are already a reality and create freedom for strategic decisions.

Climb your ERP summit with Singhammer now

Are you about to make the next big ascent? With Singhammer, you have an experienced rope partner who will guide you safely through your ERP transformation. Microsoft Dynamics 365 Business Central is your reliable tool for efficient business management.

Let's reach new heights together - start your ERP expedition with a no-obligation consultation!

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