What is an ERP system? Benefits and notes when using in businesses

Learn about ERP and the outstanding strengths that ERP systems bring to businesses. At the same time, immediately grasp the notes when applying the ERP system

Recently, more and more businesses are interested in applying Viindoo ERP in business. So what is ERP? Why does the ERP system attract such special attention? Join Viindoo to learn about the ERP system and the outstanding strengths that ERP management software can bring to businesses.

What is ERP system?

ERP stands for the English word "Enterprise Resource Planning" meaning enterprise resource planning system. A typical ERP system includes all the basic functions of an organization integrated into a single system. 

The advent of ERP software has helped businesses operate as well as processes become more streamlined. Instead of having to use independent functional software in parallel such as accounting software, and human resources software, and production software, ERP allows businesses to integrate all management software in the same system. Thanks to that, management boards and businesses can grasp the flow of information and collect data easily. The characteristic of ERP is that all processes in the business are CONNECTED together on the same system smoothly from start to finish.

Criteria for choosing a suitable ERP business management system

Classification of ERP management systems

There are many ways to classify ERP systems, such as by scale/size, by function, by industry... However, if based on architectural and infrastructure factors, ERP systems are divided Make 3 types:

  • Cloud ERP: Installed on a cloud server, accessible via the internet. Businesses need to use the services of a Cloud ERP provider and access them via the internet
  • On-premise ERP: Installed on the company's server. Businesses will have to manage, maintain and upgrade their own systems
  • Hybrid ERP: It is a combination of cloud and on-premises models. Businesses can store data in the cloud, others will be deployed on-site, on the business's own server.

Benefits of using ERP systems in businesses

It can be said that the power of ERP lies in data. The software connects all functions, processes, and departments of the business on the same platform. Here are some benefits of ERP brings to businesses:

Centralized, unified data management: Instead of having to maintain many different databases, when implementing ERP, business data will be comprehensively organized and managed. Centralized database management gives employees the ability to create and access reports quickly, minimizing delays when synthesizing information, especially for large and small businesses. complicated.

Standardize information, minimize errors when entering data: With ERP, data only needs to be entered once, information will automatically be stored synchronized between departments, helping to minimize errors. and save data entry time.

Collect data quickly, speed up work flow: Compared to performing processes manually, documents must be transferred from one department to another, applying ERP solutions Helps increase working speed. Furthermore, ERP solves the problem of "bottlenecks" in businesses.

Easy operation control, effective business management: ERP has an "Audit Track" feature that helps management check employee activities on the system. Thanks to that, managers quickly identify transactions that need to be checked and monitor the entire process, implementing internal control easily.

Criteria for choosing a suitable ERP business management system
All processes in the business are CONNECT together from start to finish.

When should businesses use ERP management systems?

The following are some cases that show that units really need ERP applications in the business:

Case 1: The old management system hinders the development of the business

Businesses are using software systems such as Excel, Word, offline tools with limited features, it is time to need a better, more flexible ERP system to allow businesses to grow and improve their capabilities. ability to compete with the market that is innovating every day out there.

Case 2: Enterprises use too much discrete software

Businesses use separate software, not connected to each other. For example, accounting software is not compatible and integrated with HR software, and HR departments and business management experience fatigue in comparing timesheets and payroll calculations, as well as difficulties. When tracking personnel costs in the company and countless other manual tasks, this is the time for businesses to apply an ERP system in their business.

Case 3: Does not meet customer expectations

The enterprise system does not meet the increasing needs of customers, leading to falling behind and reducing competitiveness, which is a sign for businesses to deploy the ERP system. For example: Today, customers demand a seamless experience across sales channels, from websites, mobile applications to stores, etc. ERP can provide a single platform to manage all chief. Enables businesses to provide customers with a seamless experience, regardless of the channel they use.

When should businesses use ERP systems?

Criteria for choosing a suitable ERP system

To help you narrow down your options and find the most suitable ERP software, we summarize the core criteria for evaluation as follows:

Ability to meet user needs

ERP software needs to have diverse functionality, meeting almost every business process need across the enterprise. Enterprises need to clearly define their requirements for the system, thereby evaluating the level of response of the software.

For example, some free ERPs will be logistics platforms with moderate additional functionality, while paid ERPs will be full-featured, powerful tools for all teams/departments in the business.

User experience

ERP systems written on request are often complex, requiring employees with technological qualifications and proper training to apply effectively and successfully. Instead, businesses should prioritize choosing user-friendly software with a reasonable and scientific design that allows easy operation without requiring expertise or much understanding of technology.

Integration and extensibility

The gap between ERP systems designed specifically for SMBs and for large enterprises is gradually narrowing. The reason is because ERP software is being developed as open source code, allowing users to expand features and easily integrate with other tools. This factor is to evaluate whether ERP can grow with the organization and continue to meet the needs of the organization in the future, when scale and administrative requirements change, requiring software system upgrades.


Not all businesses operate the same way. Therefore, customization features will help businesses easily change the software to suit specific needs. Thanks to that, the usage and operating process are also easier.

Viindoo ERP

Investment costs

ERP cost is also an important factor that businesses should consider when choosing. Because it needs to be consistent with the financial capacity of the business. Businesses need to clearly identify costs such as: Software costs, implementation costs, training costs, annual maintenance costs... to come up with a certain investment budget during the selection process.

If the budget is large, businesses can absolutely use foreign ERP or customized ERP. However, if you have a limited budget, the most reasonable choice is probably to use packaged ERP.

Reputation of the supplier

The ERP provider partly determines the success of project implementation. They will be the unit to advise, evaluate and provide ERP software to you as well as accompany you throughout the implementation process. Therefore, choosing a reputable and experienced supplier helps ensure successful ERP system operation. In addition, the platform provider also supports deployment and training of personnel to use the tool. Save some costs for businesses.

Support service included

During the implementation process, it is certainly difficult to avoid problems arising such as errors, incorrect operations, confused processes... Therefore, businesses will need a unit to support and accompany throughout the process before - during. – after ERP implementation.

Viindoo is a unit trusted by many businesses such as BDO Vietnam Auditing Company Limited, Truong Giang Electric,.... Using Viindoo's solutions, business administrators, especially medium-sized companies Children and young people also receive training support and implementation consulting throughout the process of using the system. All are integrated in the same platform. In addition, Viindoo also supports businesses to use it for free for 15 days for the most intuitive experience.

Discover Viindoo ERP

The All-in-one ERP Software for SMEs. Streamlines operations, enhances efficiency, and boosts productivity for your business.

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Viindoo ERP

Notes when using the ERP business management system

ERP has two limitations that businesses need to keep in mind when using:

High cost: This is not a small investment for many businesses. Pre-deployment costs often account for the majority, while ERP system maintenance costs usually account for about 15 - 20%. In addition, other costs such as upgrading and expanding the ERP management system will depend on the needs of the business.

 To optimize costs, businesses should set a fixed budget, then search and filter suppliers with solutions suitable for that budget.

Long time: Unlike stand-alone software, implementing a comprehensive ERP system takes more time. The average time to operate ERP in an enterprise is 3 - 9 months for small and medium-sized companies and 6 - 18 months for large-scale companies (depending on factors such as size, complexity, etc.). , number of users). Besides, you will also spend more time transferring data from the old system or integrating with the old system.

 To optimize time, businesses need to plan the ERP project and set an estimated time to complete the implementation.

It is no coincidence that ERP is receiving increasing attention from businesses around the world. ERP system is not simply an information management tool, but also a powerful tool for the development and performance of businesses in the future. To choose the appropriate ERP management system, businesses need to deeply understand the operating processes within the company. If you do not clearly understand the needs of the business, please contact Viindoo immediately via hotline 02257309838 so we can advise you in detail.

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What is an ERP system? Benefits and notes when using in businesses
Viindoo Technology Joint Stock Company, Yen Nguyen April 9, 2024