What are ERP systems?

ERP is an abbreviation of “Enterprise Resource Planning” which is used by many companies to increase the efficiency and functionality of the most core functions of the company. In many cases, the system is built as a large database that handles the vast majority of a company’s functional areas. F.ex. Inventory management, order processing purchasing, sales, finance, etc.

ERP systems are often used in finance, IT, production and retail and wholesale, which experience a significantly improved ability to manage and simplify daily operations. This releases a large amount of internal resources that can be spent on more value-adding activities that increase the company’s profitability and growth.

The spread of ERP systems increased sharply in the 90s against the background of the “year 2000 problem” and the fact that the euro was introduced in many countries. Many companies used the opportunity to upgrade to new and smarter ERP systems that could handle the new issues.

Industry and needs

There are a number of solutions that are adapted to the individual industry, and the specific needs of the companies. The most well-known are Microsoft, SAP and Oracle. Some may remember that Microsoft actually bought the Danish company Navision / Damgaard to integrate their ERP system into their own product portfolio. The product is now called ” NAV ” and is part of the Microsoft Dynamics series, which also includes GP, C5 and AX.

Microsoft’s ERP solution, Dynamics AX is one of the most used ERP systems in Denmark, and several municipalities are also known for using the systems successfully.

One of the reasons Dynamics AX has become so popular is often attributed to the software’s many customization options, an important feature since no two companies are the same. Likewise, one of the great advantages is that Dynamics AX has many of the same functionality and appearance as Microsoft Office. There are probably not many work computers Denmark, where Microsoft Office is not installed, this makes it easy for new users to get started with Dynamics AX.

There is no golden rule for when ERP systems are something you as a company should use, and it can be difficult to navigate the many different options. A large number of consulting companies advise and guide on how to integrate ERP systems as best as possible.