An introduction to ERP software.
As business operations grow more complex, many modern businesses rely on integrated ERP systems to streamline operations and make data-driven decisions. Learn how ERP software can help centralise core business functions in one shared database, ensuring efficiency across your business.
What is ERP?
Enterprise resource planning (ERP) software unifies core processes such as finance, HR, supply chain and more into a single, integrated system. By eliminating data silos and enabling real-time collaboration across departments with a single data view, ERP software enables smarter decision-making across an organisation.
The primary purpose of ERP is to bring different functions together under one roof, enabling businesses to standardise processes and automate repetitive tasks. By collecting inputs from departments that work in parallel, such as accounting, sales, supply chain and marketing, businesses can create more accurate and efficient strategic forecasts.
However, ERP is not a single standalone product. It's a category of software that covers many different applications. Next, let's look at how those modules come together to create an ERP system.
What is an ERP system?
An ERP system is a series of integrated modules that share a common database to promote continuity. That database different business functions into one easy-to-use platform.
Often, ERP systems will work “out of the box” with various modules built in, such as warehouse management, procurement and human resources management. However, some businesses will also add additional modules and functionalities to meet their unique business needs. If your business has a function that uses data in some capacity, it’s likely that a module exists for that purpose.
How ERP systems work.
Think of ERP as your business’s central nervous system. It connects everything from payroll and procurement to sales and strategy, replacing siloed systems with a unified platform.
Here’s what that looks like in practice:
Automation of manual processes like invoicing and inventory tracking
Data centralisation for real-time reporting and fewer errors
Integration across departments, enabling smarter collaboration
Standardisation of workflows and compliance with Hong Kong Financial Reporting Standards (HKFRS)
With Workday, all this happens in the cloud, accelerating time-to-value, shortening innovation cycles and eliminating the maintenance burden typical of legacy on-premise systems. This means lower IT overhead, faster innovation, and easier access from anywhere, critical for businesses operating across Hong Kong and the Greater Bay Area.
Why ERP matters for modern businesses.
ERP is more than software. It’s a strategic enabler for growth, agility, and resilience. While specific benefits vary by industry, most organisations turn to ERP for:
Efficiency.
ERPs automate processes and reduce manual work, saving time and minimising errors.
Real-time insights.
Get a unified view of data across your business to support smarter, faster decisions in Hong Kong's fast-paced market environment.
Flexibility.
Modern ERPs scale with your business, adapting to growth and evolving needs as you expand across the Asia-Pacific region.
Compliance and risk management.
Centralised data and built-in audit trails simplify compliance with the Companies Ordinance, Inland Revenue Ordinance and HKFRS, whilst reducing exposure to regulatory risk.
Employee empowerment.
Self-service tools and intuitive interfaces help teams work faster and smarter.
Core ERP modules and what they do.
An ERP system isn't a one-size-fits-all solution. It's an editable framework designed to meet a business's unique needs. From finance and HR to inventory and customer management, each module plays a vital role in streamlining operations, improving efficiency and driving growth.
Let’s break down the essential ERP functions and how they help businesses run more smoothly.
Finance and accounting.
An ERP system's finance and accounting module tracks revenue, expenses and budgeting in real time whilst automating accounts payable, receivable and tax compliance with Inland Revenue Department (IRD) requirements. It also generates detailed financial reports aligned with HKFRS, ensuring accurate decision-making and improved financial management.
Human resources.
Human resources (HR) modules manage payroll, benefits and employee records whilst overseeing recruitment, onboarding and performance tracking. These modules also ensure compliance with the Employment Ordinance and Mandatory Provident Fund (MPF), helping businesses streamline workforce management.
Inventory and supply chain management.
Inventory and supply chain management modules monitor stock levels, automate inventory updates and oversee procurement, supplier relationships and logistics. By preventing stock shortages whilst reducing excess inventory costs, these modules ensure a more efficient and cost-effective supply chain, particularly important for businesses managing operations across Hong Kong and mainland China.
Sales and customer relationship management.
The sales and customer relationship management (CRM) module tracks customer interactions, sales pipelines and orders whilst automating follow-ups and marketing campaigns. It provides valuable insights to strengthen customer relationships and improve sales performance in Hong Kong's competitive business landscape.
Manufacturing and production planning.
Manufacturing and production planning modules schedule production workflows, track raw materials and monitor quality control and efficiency. This reduction in waste and optimisation of manufacturing processes ensures smoother operations and higher productivity.
Procurement and vendor management.
Procurement and vendor management modules streamline purchasing, supplier negotiations and contract management whilst tracking spending to ensure cost-effective procurement. They are also critical for automating purchase order processing, improving efficiency and reducing manual workload.
Project management.
Project management modules oversee project timelines, budgets and resources whilst assigning tasks, tracking progress and enhancing collaboration. These modules ensure that projects stay on schedule and within budget, improving overall efficiency and execution.
Business intelligence and analytics.
Business intelligence and analytics modules collect and analyse data from all business functions, providing real-time dashboards and in-depth reports. They help identify trends and opportunities for growth, enabling data-driven decision-making.
Workday combines many of these modules into one intuitive system, enhancing collaboration and visibility across finance and HR and reducing friction between departments that traditionally rely on separate tools. This unified approach enables faster decisions, more accurate reporting and a streamlined employee experience.
Comparing ERP deployment models.
One of the biggest advantages of ERP systems is their flexibility. Businesses can choose a deployment model that aligns with their budget, IT resources and operational needs. Whether opting for a cloud-based solution for accessibility, an on-premise system for full control, or a hybrid approach for the best of both, selecting the right ERP setup can drive efficiency, scalability and long-term success.
For large enterprises with multiple locations or subsidiaries, a two-tier ERP strategy can offer even greater flexibility. This approach allows companies to maintain a centralised Tier 1 ERP at the corporate level whilst using a more agile Tier 2 ERP for smaller business units or regional operations. By combining the strengths of different ERP systems, businesses can improve efficiency without compromising on control or adaptability.
Up-front Cost
On-premise ERP
High initial investment.
Cloud ERP
Subscription-based, lower up-front cost.
Hybrid ERP
Moderate up-front cost, mix of ownership and subscription.
Maintenance
On-premise ERP
Requires in-house IT.
Cloud ERP
Vendor-managed updates.
Hybrid ERP
Shared responsibility, some updates managed in-house.
Accessibility
On-premise ERP
Limited to an office network.
Cloud ERP
Accessible from anywhere.
Hybrid ERP
Combines on-premise security with cloud flexibility.
Scalability
On-premise ERP
Limited, requires hardware upgrades.
Cloud ERP
Easily scalable with business needs.
Hybrid ERP
Scalable but may require additional integrations.
Security and Control
On-premise ERP
Full control over data and security.
Cloud ERP
Vendor-managed security and compliance.
Hybrid ERP
Balances control with cloud accessibility.
Customisation
On-premise ERP
Highly customisable but complex to update.
Cloud ERP
Less customisable but regularly updated.
Hybrid ERP
Allows for tailored solutions with cloud benefits.
Ideal For:
On-premise ERP
Large enterprises with strict security and control needs.
Cloud ERP
Businesses needing flexibility, remote access and lower IT costs.
Hybrid ERP
Companies needing both on-premise security and cloud scalability.
What does an ERP cost?
The cost of an ERP system depends on several factors:
Company size: Larger organisations require more functionality and licenses.
Modules selected: The more capabilities needed, the higher the cost.
Deployment model: Cloud ERPs usually offer lower upfront costs and easier upgrades.
Customisation: Tailoring the system adds complexity and expense.
Maintenance: On-premise systems need dedicated IT; cloud solutions such as Workday include updates.
Workday offers a scalable pricing model tailored to each business's needs, with faster time-to-value and reduced long-term costs.
Common challenges of ERP implementation.
Despite its many benefits, implementing an ERP system can be a complex process. Organisations often encounter the following challenges:
Change management: Getting buy-in from employees and adapting to new workflows takes time and planning.
Cost overruns: Projects can exceed budget without clear requirements or a defined scope.
Data migration: Moving data from legacy systems can be time-consuming and risks data loss or inconsistency, particularly when migrating from older systems that may not comply with current HKFRS standards.
Customisation complexity: Tailoring ERP to unique business needs can delay timelines and increase costs.
Integration issues: Ensuring the ERP works seamlessly with existing systems and third-party tools is essential, especially for businesses managing operations across multiple jurisdictions in the Asia-Pacific region.
Choosing a flexible, user-friendly ERP and establishing a dedicated project team can help businesses mitigate these challenges and speed up adoption.
How to choose the right ERP system.
With so many ERP options available, it’s important to find the right fit for your organisation. Here are key considerations:
Business goals: Define what you need from an ERP, whether it’s improving financial visibility, streamlining HR, or enhancing compliance with Hong Kong regulations.
Deployment model: Choose between cloud, on-premise or hybrid depending on your IT capabilities and scalability needs.
Ease of use: User adoption hinges on intuitive design and accessibility, particularly important in Hong Kong's multilingual business environment.
Integration: Ensure the ERP connects with your existing systems and data sources.
Innovation: Look for modern features such as automation, mobile access and AI-powered insights.
We provide cloud-based deployment, intuitive UI, AI-driven analytics and unified finance and HR modules. Learn more about Workday Financial Management, HCM and AI.
ERP success in action: Workday customer stories.
Unum.
This leading insurance company replaced 20+ systems with Workday, reducing manual tasks and IT complexity while empowering business users with direct access to data.
Blue Yonder.
A global supply chain firm that reduced month-end close from 14 days to 4 days and unlocked real-time reporting using Workday self-service tools.
These are just a few examples of how Workday helps businesses transform operations and stay future-ready.
Set the ERP standard with Workday.
ERP systems are essential for growing, adapting and optimising in today’s business environment. However, not all ERPs are created equal.
Workday combines finance and HR in one unified cloud platform, infused with AI and analytics, designed for user experience. It empowers teams to act fast, adapt to change and plan for tomorrow whilst maintaining compliance with Hong Kong's regulatory framework.
Whether scaling your business, modernising legacy systems or building a future-ready organisation, Workday delivers the flexibility, insights and simplicity you need to succeed in Hong Kong's dynamic market and beyond. Explore more about Workday ERP solutions.