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What Is A Management System And What Is It For?

A management system is a tool that allows you to control, plan, organize and, to a certain extent, automate the tasks of a company. Its objective is to unify all the company’s operations in a single software in order to facilitate decision-making and data analysis.

In recent years, business management systems have been gaining popularity as fundamental tools for organizations thanks to their increasingly complete features, especially in a digital transformation process such as the one we are currently experiencing. Do you already know what kinds of these systems exist and how they can benefit your business?

Types of management systems

Enterprise Resource Planning (ERP)

ERPs are the business management systems par excellence. They provide comprehensive management of all the company’s processes, from those of the Financial department, to those of Logistics, Operations or Human Resources, among many others.

In addition, ERPs communicate between different modules of the company, both internal and external, thereby linking a multitude of business processes and facilitating the flow of data and information between all of them.

Customer Relationship Management (CRM)

CRMs are a type of management system aimed at supporting commercial and customer relationship processes, both in the pre- sales and post-sales fields.

Although it is true that this function can be managed by ERPs, it is also true that CRMs cover a broader commercial spectrum . In addition, they can be directly integrated with ERPs.

Warehouse Management Systems (WMS)

Companies that have certain logistics activities can manage their systems through an EMS . Like CRMs, these tools are more specialized in management , in this case warehouses , so they facilitate this management and automation. As in the previous case, they are systems that can be integrated with ERPs.

Document Management Systems (SGD)

DMS are aimed at document management, that is, the creation , storage, archiving and organization of large volumes of documents , whether in electronic or paper format.

Business Intelligence (BI)

Business Intelligence (BI) systems are aimed at managing and storing large volumes of information and supporting management in decision making.

Until recently, BI systems were independent of ERPs. However, currently they are integrated with them to provide a comprehensive solution for decision making .

Business Process Management (BPM)

BPM facilitates the flow, coordination and sequencing of a company’s work across its different departments and users. They are specific solutions or well integrated with the company’s ERP, like the previous ones.

Benefits of management systems for companies

The benefits of implementing a correct business management system are evident:

  • It automates a good part of the company’s processes , which reduces human errors and the costs of manual work.
  • It allows access to information in a much more agile and simple way. In addition, it facilitates business decision-making thanks to analytical tools, since the data is unified in a single system.
  • It gives access to updated information , in real time and centralized, which makes it possible to obtain or consult it from any device, anywhere and with several simultaneous accesses at the same time by different users.
  • Improves productivity and use of employee time. Management and administration tasks are automated, which improves the use of employees’ time and allows them to dedicate themselves to more productive tasks.
  • It adapts to the needs of each company , thereby achieving even greater efficiency and, above all, ensuring that the management system responds perfectly to the specific demands of the user company.

What does your company need to implement a management system?

Before implementing a management system, companies must identify their particular needs and strategies. A service company is not the same as a manufacturing company that has to produce goods, store them and distribute them.

We can imagine management systems as a tree, in which the trunk is what is common to all of them, while the branches are the specific component of each one in particular. There are two options: implement the new system in parallel, leaving the operational guidelines in common, and then integrate all the remaining systems, or implement the integrated management system from scratch , which is the fastest method.

Once you know what modules your company requires and the interrelation between them, the next step is to choose an ERP that fits those needs. This system helps make decisions that add value and give more competitive power to the company . Furthermore, as you have seen, ERPs are used together with business intelligence tools to have a comprehensive view of the company, with real-time information.

Also Read: How To Choose A Business Management System

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