The Backbone of Modern Business
By Rick Kostopoulos, NewGen Business Solutions
Enterprise Resource Planning, or ERP, might sound like a buzzword, but it’s the backbone of how businesses operate effectively in today’s fast-paced world. At its core, ERP is about your enterprise, your resources, and your planning capabilities. But what does that mean in practice?
Think about all the resources you need to run your business. Now, imagine being able to plan and manage those resources seamlessly, ensuring that every part of your operation is working in harmony. That’s the essence of ERP. Over the years, ERP systems have evolved from simple accounting tools into comprehensive platforms that manage nearly every aspect of a business.
In the early days, the GLAPAR days, ERP was mostly about the basics—tracking income and expenses with tools like the General Ledger (GL), Accounts Payable (AP), and Accounts Receivable (AR). Back then, a Lotus spreadsheet was often the go-to tool for managing finances. It was enough to keep track of where the money was coming from and where it was going.
As businesses grew and became more complex, so did their needs. The second stage of ERP introduced tools like Sales Orders (SO), Purchase Orders (PO), and Inventory Control (IC). These additions allowed companies to manage sales contracts, purchasing agreements, and inventory with greater precision. It was a game-changer, allowing businesses to track not just money, but also the goods and services flowing through their operations.
In more recent years, ERP systems have expanded to include even more advanced features like Customer Relationship Management (CRM), Bill of Materials (BOM), Project Accounting, and Case Management. These tools allowed businesses to manage relationships, track projects, and handle complex transactions—all within a single system.
However, as ERP systems have evolved, so too have the challenges. Different industries have unique needs, whether you’re a manufacturer, a distributor, a retailer, or even a medical professional. This is where verticalization comes into play—customizing ERP systems to fit the specific needs of an industry. In the early days, this customization was difficult due to rigid technologies, leading to a reliance on outside systems and creating data redundancies and maintenance headaches.
Today, the goal is to eliminate these inefficiencies by using modern, flexible technologies that allow for proper verticalization. When done right, a well-designed ERP system can create strong operational efficiencies, effectively becoming the holy grail of business management. But not everyone is there yet. Some businesses still struggle with outdated systems that are cobbled together, leading to a constant cycle of upgrades, broken syncs, and reactive problem-solving.
Don’t let outdated systems and consultants keep you in a constant state of fixing and reacting. Re-activity is a mode that no one wants to sustain, break|fix|sync.
Instead, the key to success is proactivity—using an ERP system that is properly aligned with your business, can grow with your business, and meets the specific needs of your industry.
Run your business. Don’t let consultants run you, breaking|fixing|syncing, breaking|fixing|syncing.
Rick Kostopoulos, an expert in ERP, has spent years helping businesses find the right solutions. His company, NewGen Business Solutions, developed ConventionSuite, an event services package built on Oracle NetSuite, the world’s #1 Cloud ERP. Recognized as Oracle NetSuite Partner of the Year in 2023, NewGen has helped countless businesses streamline their operations with a comprehensive system that includes everything from CRM and project management to payroll and inventory. NetSuite is trusted by over 37,000 companies worldwide for a reason—it works. If you’re ready to move from a reactive to a proactive approach, it might be time to consider what a tailored ERP solution can do for your business.
This story originally appeared in the Q4 2024 issue of Exhibit City News, p. 50. For original layout, visit https://issuu.com/exhibitcitynews/docs/ecn_q4_2024/50.
