What type of data does ERP provide for improved decision-making?

ERP systems are designed to integrate and manage core business processes, which allows them to provide real-time data and analytics. This capability is crucial for improved decision-making because it gives businesses an accurate and up-to-date view of their operations, finances, and other essential areas. Real-time data enables managers and decision-makers to respond swiftly to changes in conditions, optimize operations, and identify new opportunities.

The analytics provided by ERP systems help in evaluating performance, forecasting trends, and making informed decisions based on current data rather than relying solely on past performance or generalized predictions. This immediate access to information supports more agile and effective business strategies, enhancing the overall decision-making process.

In contrast to real-time data, other types of data such as historical data alone may limit insights only to past performance, while hypothetical and extrapolated data can lack the necessary context, potentially leading to misguided decisions.