The term e-business means an electronic business, which implies that the concerned business uses the latest technology such as internet in order to carry out its operations. Communications also play a major role in the said form of business. Some experts have also termed this electronically-enabled business, which uses such networks in order to provide and receive information that is useful for their business.
How can ERP help?
Enterprise resource planning (ERP) can play a major role in making an e-business more efficient. It achieves this by making the links between service providers and clients stronger than before. This is applicable for both business-to-business (B2B) and business-to-customers (B2C) units that cater to businesses and individual customers respectively. The biggest ERP benefit of such strengthening is evident in the value chains.
By using ERP solutions e-businesses can also improve the level of efficiency in selling, purchasing, and marketing activities. These solutions also help companies become more effective in terms of improvement in customer services, reduction in expenses, and streamlining of various procedures related to business. With ERP e-businesses can also create a business environment that is strategic and geared towards customers. This environment comes in very handy as the business improves and everyone is rewarded and benefited properly.
Better CRM and SCM
With the help of ERP an e-business can improve areas of its business such as supply chain management (SCM) and customer relationship management (CRM). This will enable the companies to establish smooth connections with the customers and suppliers.
How can both be used together?
Companies can use both internet and ERP solutions together to track key areas of their business such as sales and promotions that are being done through the internet, which these days has easily become the most surefire way to reach the maximum-possible clients. Thus, they are also able to provide timely suggestions and any necessary help in order to let the concerned divisions perform even better than what they are already doing. ERP also allows companies to access critical data such as various commission reports and by this they are able to keep track of sales orders and also adjust the same as and when may be needed. ERP also helps a company collate various reports related to finances, sales, compensation, and depletion into one. This helps the company do away with partial shipments as well as out-of-stock ones. When ERP is integrated with e-business it can do away with the extra labour force that has to be maintained in order to deal with issues related to customer service.
The question of foundation
It is almost common knowledge that these days any e-business project needs to have proper ERP in order to survive. It is thanks to the ERP that people involved in a business get all the information that they need about the same through the company’s website. They can also process any information that they receive by way of using ERP software.
Enhancing the value chain
A combination of e-business and ERP will always increase the efficiency of an existing value chain by a significant extent, especially in the context of cross-company boundaries. In areas such as B2B procurement, the organization will be able to streamline internal procedures like creation of purchase order and approval of requisitions. This benefit will extend to external procedures as well. Suppliers will also be able to keep track of inventory levels. This will assist them in forecasting and planning likewise. This way they will truly be able to become a part of the value chain. In fact, this combination can actually help some suppliers gain the edge over others in terms of being better equipped as well as eager to take part in the environment of collaboration being talked about over here.
Edge in terms of competitive bidding
With a combination of internet and ERP tools one can get some much-needed edge in terms of competitive bidding since this combination leads to significant improvements in the area of sourcing. There are lots of web-based intermediaries these days that have created a bridge between buyers and sellers and this has forced the hand of companies as far as sharing processes are concerned. This also includes the knowledge of making online quotes.
Without ERP it is actually hard to imagine how such concepts can operate in reality since the support that the software provides is much important. It is imperative that all e-businesses incorporate ERP as a form of supporting process. Initially it might not be part of the plans but the design should have space for the same nonetheless. It is also important that when e-business processes are being designed, authorities do not disregard the matter of compatibility of the new platform and the processes that are already there. This includes the ERP software systems as well.