What is ERP?
Enterprise Resource Planning
TL;DR
ERP (Enterprise Resource Planning) is software that connects all your business processes like accounting, inventory, HR, and sales in one integrated system.
Example
What ERP connects:
- Finance: Accounting, budgeting, reporting
- Operations: Inventory, production, supply chain
- HR: Payroll, recruitment, employee data
- Sales: Orders, CRM, quotes
- Purchasing: Vendors, procurement, invoices
Without ERP: Sales enters order in one system. Warehouse checks stock in another. Finance creates invoice in a third. Same data entered 3 times. Errors happen.
With ERP: Sales enters order once. System updates inventory automatically. Invoice generates from same data. One source of truth.
Popular ERP systems:
| System | Best For |
|---|---|
| SAP | Large enterprises |
| Microsoft Dynamics | Mid-market |
| Visma | Nordic businesses |
| Tripletex | Norwegian SMBs |
| Odoo | Flexible, open source |
Explanation
ERP Benefits
Single source of truth: All departments see the same data. No conflicting reports or numbers.
Process automation: Workflows trigger automatically. Order approved → inventory reserved → invoice sent.
Real-time visibility: Dashboards show current status. Not last week's data, but right now.
Compliance and audit trails: Every change is logged. Who did what, when.
ERP Challenges
- Cost: Implementation can be expensive
- Complexity: Steep learning curve
- Customization: Often requires consultants
- Migration: Moving from old systems is painful
- Ongoing maintenance: Updates, training, support
Why It Matters
For Business Owners
You probably need ERP when: Multiple people enter the same data in different places. Reports don't match. You can't get real-time business overview.
The right time for ERP: When manual processes are slowing growth, when errors from disconnected systems cost money, when you need better reporting.
Cloud ERP has lowered the barrier. Modern cloud ERPs like Tripletex or Odoo are more affordable than traditional on-premise solutions.
ERP is a big decision. Budget for implementation, training, and ongoing support. Rushed implementations fail.
Before Buying ERP
- Document your current processes
- Identify pain points you want to solve
- Get demos from multiple vendors
- Talk to similar businesses using the system
- Budget 2-3x the software cost for implementation
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