August, 2023 | msg life Slovakia

ERP system: how ERP works and how can it help you?

Posted on 25. 08. 202325. 08. 2025 by Zuzana Kocáková

What is an ERP system, what a great helper is it in many areas and how can it simplify several tasks, including eliminating the occurrence of unnecessary errors? It is most commonly found in human resource management, finance, economics and logistics, but it is also used outside of these areas. What is an ERP system and what benefits can it give you?

What are ERP systems?

Before we explain what an ERP system is, it’s important to find out what the acronym ERP actually stands for. The ERP acronym is made up of the first three letters of three English words – Enterprise Resource Planning, which translates to Enterprise Resource Planning.

In other words, ERP systems are used for comprehensive business management. People use them mainly to plan their goals and coordinate company resources or individual departments.

An ERP system can easily connect multiple business processes, providing better visibility and easy control over the entire company. So you can manage information about logistics, administration, warehouse, production, etc. in one system.

Interestingly, while today ERP systems are a practical tool without which companies cannot imagine their functioning, this was not the case in the past. The systems worked independently and separately. They were unable to communicate with other programs and systems. In addition, each program required a special and very expensive code. This negatively impacted the whole work process and often hindered the adoption of new technologies.

Modern ERP systems can be interfaced with other systems and working with them is relatively easy and fast. Employees don’t have to be IT specialists to know how to use them. All they need is a short training and a little practice. Another great advantage of ERPs is that most of them have enhanced security that ensures a high level of privacy protection.

ERP meaning and importance

ERP software is crucial in businesses for several reasons. The first reason is the fact that, thanks to automation and integration, it can efficiently manage day-to-day activities, saving time and making work easier.

ERP modules centralise and manage different business processes and data in one single unit. This sophisticated system allows you to effectively manage and monitor your resources. Ability to make individual decisions in a timely manner to achieve business objectives and minimize risks.

The importance of ERP varies depending on the industry. In logistics, for example, cooperation between customers and suppliers needs to be streamlined. Instead of handling the tasks for each of the parties in a separate software, you only need one, where you have the possibility to implement specific ERP modules.

The same is true within the financial area of the company. ERP systems give you an overview of paid and unpaid invoices from suppliers and customers. So you know which invoice your company hasn’t paid yet and which one someone has to pay to you.

Last but not least, an ERP system is also key in the strategic decision making of companies. It gives you real-time data so you know exactly where your business stands. Make sure you’re working with up-to-date information when you’re scheduling tasks or major changes. This allows you to achieve the most ideal results.

Did you know that…

… there’s also something called low-code ERP? These are ERP systems that require minimal programming knowledge for integration and customisation. This means that employees do not need advanced technical skills, such as the most used programming language expertise.

Where is ERP program used?

ERP systems have a wide range of applications. They are typically used in medium and larger enterprises, playing a key role in the various work processes in these areas:

economics,
finance,
accounting, invoicing and payroll,
human resources management,
logistics,
customer support,
trade, production and order management,
business intelligence.

A young woman and a man discussing and working on one laptop — ERP systems can be used in almost all areas of a company, which simplifies many tasks.

ERP system benefits

An ERP system has a large number of advantages. Which benefits it will bring you depends mainly on what area you want to use it in. However, its biggest benefits generally include:

Reduced costs – by bringing together all the relevant information from multiple areas, an ERP system can provide a completely different angle on the entire enterprise. This allows you to find tasks or activities that can be combined or skipped altogether, thus saving you a lot of money. ERP systems even work with artificial intelligence that can plan some activities much better than the employees themselves, which can also lead to cost savings.
Ensured order in the company – by bringing important areas of the business together in one place, ERP provides an overview of all tasks and activities. You know what’s going on in the company, what you need to do first and what can wait. The company thus effectively avoids chaos that could lead to unnecessary problems.
Optimized and automated work tasks – ERP systems contain a number of tools that help with stereotypical activities. This saves time and allows employees to focus on more important tasks.
Advanced analysis and forecasting – when you have all the information you need in one place, it’s much easier to find answers to planning or decision-making questions.
Access data from anywhere – many ERP online systems allow you to access data from anywhere, whether you’re in the office, at home or on a business trip. Even some solutions have mobile device optimization, including an“ERP app“, which opens up additional possibilities for work outside of the office.
Quality support – when you choose a quality and proven supplier, you have the confidence that you can call on quality customer service whenever you need it. He will be happy to help you with any problem, from implementation to various updates or feature extensions.
Lot of options available – there are many ERP systems on the market. Popular foreign ones include Oracle ERP, NetSuite, SAP Business One or Microsoft Dynamics 365 Business Central. Popular Slovak systems include ONIX, ERP Money S4 or FLOWii. Everyone will find their own.

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ERP systems are also widely used by organizations operating in the insurance market. We at msg life Slovakia are one of them. We use our own ERP system. If you know how to program in Java and would like to be involved in developing ERP systems, take a look at our Java Developer job offer.

What are the disadvantages of an ERP system?

ERP systems also have a few disadvantages. The ones you should know about before you start using them include:

High entry costs – ERP systems are not cheap. You’ll have to pay extra for the features they provide. Most of them are available as Saas (Software as a Service), which in practice means that you will pay a monthly fee for the system. Its amount is usually based on the number of users and modules. The more modules/functions a system has, the more expensive it will be. In addition to this amount, don’t forget about additional fees for implementation, importing existing data, testing, staff training, updates, etc.
More complicated to use – even though modern ERP software is much easier to use than those used in the past, it can still cause problems for some employees. As a result, this complicates their work, reduces performance and affects sales.
Longer implementation – ERP software implementation is not a matter of a few days. In reality, it takes several months, with several days to a week of staff training immediately after its introduction. So it can take several years before a business starts to reap the full benefits of ERP.

Comparison of ERP software with other systems

You can use other systems in your business besides ERP. Some may seem very similar at first, complicating the whole selection process. For a better overview, we have compared some of them.

two sets of hands are working on a laptop and taking notes in msg office — ERP system can be customized according to the needs of the company.

ERP vs CRM

CRM (Customer Relationship Management) is a system that manages all the ways a customer interacts with a company. Its main task is to collect and store customer information. CRM can work independently or as part of ERP.

The biggest difference between ERP and CRM is that ERP is a complex system providing dozens of features and countless uses. On the contrary, CRM is only used to manage customers and activities directed to them.

When thinking about whether to choose both solutions or just one of them, base your decision on the goals of the business. If the focus is more on streamlining management and establishing order, ERP is the obvious choice.

However, if your goals are more focused on building customer relationships, prospecting and maintaining them, a CRM is ideal. Alternatively, choose a combination of ERP and CRM, which, although more expensive, really does provide everything the business needs.

ERP vs MRP

MRP (Material Requirements Planning) is a software designed to calculate the required materials and their quantities. In addition, it can also manage the timing of deliveries to meet the needs of customers. Like CRM, MRP can be a stand-alone unit or part of ERP.

When choosing one of the options, keep an eye on the needs of the business. MRP is ideal for companies looking to streamline production schedules and segment inventory. ERP is designed for those who want a comprehensive solution, including additional functions related to accounting, logistics, etc.

ERP vs ECC

ECC (Enterprise Central Component), sometimes referred to as SAP ERP is often associated with the concept and comparison of ERP system vs SAP. However, SAP EPR is an IT enterprise resource planning system that includes various modules such as FI, HR, PM, PP. This is one of the ERP systems currently on the market. It is developed by SAP.

ERP vs MES

MES (Manufacturing Execution System) is used to monitor manufacturing processes. Its role is to help workers make important decisions within the production area. One of the characteristics of MES is that it operates in real time.

MES can be integrated into an ERP system, but it can also be standalone. The first option is more comprehensive and practical. It is ideal if the company also needs a system for other areas, such as logistics or finance.

ERP vs EPM

EPM (Enterprise Performance Management) provides the detailed information needed for planning, analytics, data reporting or forecasting certain events. It provides users with advanced tools designed to make the information collected easier to understand.

EPM can be part of your ERP, giving you a comprehensive solution that guarantees the best working results.

ERP vs WMS

ERP WMS (Warehouse Management System) is used to manage and control warehouse operations. This speeds up the receipt of goods from suppliers and the delivery of orders to customers.

The biggest difference between ERP and WMS is that WMS has a specific purpose, whereas ERP is a comprehensive package that you can use in different areas. It is a tailor-made solution that can also include a WMS. However, if you don’t need anything else besides WMS functionality, it’s not worth investing in an ERP system. It would be unnecessarily expensive and complicated for you.

ERP systems in Slovakia

The price of ERP systems in Slovakia or abroad depends on how many users will use them and what functions the company will need. In general, however, we can say that the cheapest solutions are in the range of 2- to 10-thousand Euros.
On the other hand, advanced and complex ERP systems in Slovakia with a wide range of functions and in the event that multiple ERP modules are implemented, the price can rise significantly. In the case of larger companies with complex processes and higher management requirements, the price of an ERP system can exceed 70 thousand Euros or more.

Are you a programmer interested in ERP systems?

If you have experience with Java programming, relational databases or ERP systems and are looking for a job, respond to our Java developer offer and help us develop our ERP system that we use at msg life. We have great company benefits and in the Employer of the Year 2025 competition in the IT and Telecommunications category we ranked 4th place.

Learn how to work with an ERP system yourself

ERP systems are an important part of many businesses. Knowing them can open the door to new and interesting job opportunities. If you already have some experience and want to get into this field, take a look at our job offers. If you speak German, you can look directly at the job offer for Project Management Officer.

Conflicts in the workplace: how to resolve them?

Posted on 04. 08. 202325. 08. 2025 by Zuzana Kocáková

Conflicts in the workplace are not uncommon. Everyone will encounter them in their lifetime, and not just once. The reasons for their occurrence are numerous. Sometimes they can occur due to misunderstanding of the other party, other times they are the result of months or years of suppressing anger. What types of conflicts can you encounter in the workplace and how can you deal with them properly?

Conflicts at work cannot be completely avoided

Every company is full of people with similar work goals, but very different opinions, parent education, worldviews and behaviours. In addition, one should not forget about sympathy. While you may like someone and instantly form a friendly relationship, others may find you annoying. You may not even be aware of this at first, it will come up later, for example when dealing with a complication.

However, the reverse is also true. Even you don’t have to like every colleague. A very active person who is always talking can get on your nerves after a short time. A strong individualist who doesn’t like to work together can complicate the whole process.

Conflicts are a normal part of working life. Experts agree that negative emotions should not be swept away because they can come back and be much stronger. If something is bothering you, it’s important that you start to address the problem, either with the person who is the source of the problem or with a supervisor.

Conflicts in the workplace are common — Conflicts in the workplace are not to be swept under the carpet

Workplace conflict sources

There are several possible sources of conflict in the workplace. The main ones include:

Likes and dislikes – every person is different, so it’s perfectly normal to like one person and dislike another. If you don’t like a colleague or disagree with their opinions, try to keep your communication with them to a minimum. Do only joint work tasks and projects with them, nothing else. This avoids unnecessary conflicts based on significant differences.
Expectations – even if you don’t realize it, we all have expectations. You can expect your colleagues to share your opinion, to do things without you saying so, or to find some things as natural as you do. However, as soon as you find out that the reality is quite different, you begin to develop antipathy towards these people, leading to conflict. Therefore, do not expect anything from others. If you want them to help you with something or to do something, just tell them.
Misunderstanding – even minor communication noise can cause a big problem. It most often occurs in email communication, where you can interpret a written communication in a completely different way than the author intended. However, conflict can also arise when a colleague does not express themselves correctly or sufficiently. If you don’t think you understand something well, you’d better ask follow-up questions.

Did you know that…

Conflict resolution is a soft skill. In other words, it is a natural ability that a person should possess. However, the good news is that with enough practice and constant training, you can at least partially acquire this skill.

Basic types of conflict in the workplace

The teamwork is made up of very different people who often have nothing in common. That is why multiple conflicts can arise in a very short time. According to their nature, they can be divided into several basic groups.

Leadership conflict

You will encounter this type of conflict when you don’t like your supervisor and their personality, leadership style or any other detail. However, it is important to know that it is not always only the supervisor who is the problem. In some cases, it may also be the employees themselves.

For example, this is a situation where management promotes a junior colleague. Older employees may become frustrated or bitter, which increases distrust and resentment.

Regardless of whether you are a supervisor or an employee, in both cases, unpleasant conflicts can arise from negative feelings. So if you notice that your manager is treating you inappropriately or your subordinates are being unpleasant to you, you should start addressing the situation as soon as possible.

Did you know that…

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Conflict arising from interdependence

In this type of conflict, there is a shifting of blame to another person, with whom you are likely to feel antipathy later.

In practice, this could be, for example, a slower member of the team who causes you to regularly extend your working hours, or a person who is not fully committed to their work and then you have to do it with other colleagues instead of them.

Conflicts due to different working styles

Every employee has their own style of work. You may be more comfortable working in a team, while your colleague may be more comfortable working individually. Forcing one party or the other to conform leads to conflict and reduced productivity. The ideal is therefore to try to divide duties so that everyone can work in a style that suits them.

Conflicts in roles and ideas

Tension can also arise when you disagree with a set work style, other colleagues’ ideas, or your boss’s approach to a particular project. In such situations, it is a good idea to get in touch and discuss the problem. Otherwise, you’ll be very unhappy and nervous at work, which can lead to you blowing up later.

Personality clashes

Major work conflicts also arise when very different personalities come together. A person with a different opinion or perspective on a situation can make you angry with even one small remark. So, if possible, try to keep contact with them to a minimum.

Conflicts in the workplace can also be personal — Conflicts in the workplace often stem from employee differences

Workplace conflict resolution

When conflict arises in the workplace, it needs to be addressed. This role is usually taken by a person in a leadership position. If you try to solve it, you should know a few ways to solve the problem without creating more drama.

Don’t overlook the problem or conflict

Conflict resolution in the workplace is not pleasant. That is why many try to overlook them and pretend they do not exist. However, overlooking conflicts is far from the ideal way to get rid of them. Other employees will become increasingly unpleasant, which can lead to even bigger problems later on.

The first step in dealing with conflict is to acknowledge it and admit that your team or company is struggling with it.

Listen actively

Effective communication relies not only on talking, but also on active listening. In practice, this means paying full attention to the other person’s words, not interrupting and trying to understand their point of view. That way you can find out what the conflict is really about and where the problem is.

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As well as paying attention to what the person says, observe their gestures, facial expressions and other non-verbal cues. These can help you determine whether what they are saying about their feelings is true.

Keep calm

Emotions can complicate the solution of any problem, even the smallest one. So try to avoid anger, sarcasm or passive-aggressiveness when listening and talking to colleagues or employees. When the other person is frustrating you, try some methods to calm yourself down, such as deep breathing or counting to ten.

A calm and neutral approach can calm the other person and reduce their anger or nervousness. Besides, with a cool head, you’ll find a rational solution much easier.

Focus on the problem, not the person

You’re more likely to have a person on your work team that you like more than others. However, personal preferences must be put aside when solving the problem. Focus on the situation and avoid favouring the person. This could lead to further conflicts.

Try to find a compromise

Once you’re familiar with the situation, try to find a compromise that works for both sides. Suggest several possible solutions and see which ones resonate the most with employees or colleagues.

Finding a compromise is difficult, so make more time for this. Think about how the conflict could be resolved in a way that benefits everyone. For example, you can take advantage of various employee benefits that you’ll provide to both parties.

Then remember that you don’t have to be alone in the problem. Sit down calmly with other concerned persons and use brainstorming.

Think to the future

If you don’t want to deal with conflict on a regular basis in your team or company, it’s important to create a plan to prevent it. This plan should include clear expectations and information about who is responsible for which work tasks. Be sure to check the plan regularly and add more points if necessary.

Conflict resolution strategies

There are several strategies you can use to resolve conflicts, for example:

Collaborative strategy – all parties present their goals and interests, taking into account the others and wanting to find a satisfactory solution. Cooperation and empathy are key.
Strategy of compromise – each party is willing to give up something in favour of an agreement. Cooperation is important and leads to the best results.
Strategy of confrontation – one of the parties tries to achieve their goals regardless of the needs of the others. This strategy often occurs when someone with a higher status is in conflict, which they can use to their advantage.
Adaptation strategy – one of the parties takes step back to meet the needs and demands of the other party. Person can often be manipulated in these situations.
Enforcement strategy – one of the parties tries to enforce its goals much more than the others and only cares about achieving them. This strategy is characterized by a low degree of cooperation and may be ineffective in the long term.
Argumentation strategy – the parties present arguments on the basis of which a solution to the problem can be reached. As a rule, credible and logical arguments win.

Conflict resolution skills examples

To give you a better idea, we can give an example of conflict resolution in the workplace. Imagine you have a colleague who, instead of working, is always running off somewhere, scrolling through social networks and not giving their full attention to their tasks. Because of this, you and your other colleagues have to stay at work longer and do what they didn’t get to do.

Instead of working together with other colleagues to suppress anger and frustration, try to talk to the person. Tell them what bothers you and suggest solutions. If they won’t listen to you or aren’t interested in resolving the situation, leave it to the supervisor.

However, go to the superior with calmness. Choose one person to speak for you as a team. In this way, you will avoid the shouting that could lead to chaos. It is then up to the supervisor to decide how to deal with the situation. Ideally, they will keep calm, listen to all parties and then they propose a well-thought-out solution.

Troubleshooting is a big plus

Conflicts in the workplace are a common but unpleasant part of working life. When they arise, they need to be resolved, not overlooked. There are several ways to do this. When you learn how to use them properly, you will know how to react appropriately to different situations. In addition, it is one of the soft skills that employers value. So if you’re looking for any job offers and career development opportunities, be sure to put this detail on your CV.