ERP: What it is and how it operates in the legal context

It is quite common for law firms to utilize cloud-based management systems, where each department integrates its teams through a dedicated tool.

While this is beneficial for that specific unit, looking at the macro perspective reveals that, due to each sector having its own management system, communication between different areas is hindered. This is where ERP comes in as a potential integration solution.

Want to understand what ERP is, how this tool operates, and the benefits of its application in the legal sector? Explore this information in the following content:

ERP: What is it?
How does ERP function?
What are the advantages of an ERP system?

ERP: What is an ERP system and what is it used for?

ERP is an acronym for Enterprise Resource Planning – which, when translated into Portuguese, means “Planejamento dos Recursos da Empresa” or “Enterprise Resource Planning.” It is a tool applied to business management, with the ability to integrate all organizational information into a single control system.

Unlike segregated systems for each department, this tool provides transparency, collaboration among teams, and the exchange of information and strategies. The goal is to facilitate better decision-making and ensure greater efficiency and effectiveness in carrying out tasks within the law firm.

What is the difference between ERP and CRM?

ERP is often confused with CRM systems. However, these tools have distinct objectives, and it’s important to understand their differences and determine which system is better suited for law firms.

Also known as Customer Relationship Management, CRM is a tool developed to integrate information and tools relevant to activities aimed at improving the relationship between consumers and the company.

When used in a law firm, CRM facilitates the practical and simple reduction of the distance between lawyers and clients. However, this system is not capable of addressing all the demands of the company.

On the other hand, ERP aims to integrate all information related to data obtained in the office, regardless of the activities being carried out in the internal sectors of the company.

For the legal sector, this type of tool is extremely relevant as it reduces the workload related to the search for physical documents and client information across different databases.

Moreover, it is possible for an ERP system to have a CRM module, combining the operational and tactical capabilities of both software for a more fluid and strategic management system.

How does ERP work?

As mentioned earlier, a law firm may have various management tools operating in different sectors of the corporation. Consequently, a lawyer seeking a broader view of information related to contracts and cases often has to navigate through different systems to obtain a more comprehensive assessment of the situation.

However, it is precisely in the process of cross-referencing information from different systems that data is copied and removed, leading to issues related to confidentiality breaches and leakage of information protected by LGPD (Brazil’s General Data Protection Law).

But with the use of ERP, these problems can be addressed. The tool operates by collecting data from different systems, organizing the entire volume of information generated by the company into a more robust and comprehensive platform.

From there, it is possible to add operational modules that work well in day-to-day management of contracts, payments, new case information, and client databases.

In this way, opportunities arise for the company to implement the system across all departments, facilitating the flow of information for swift decision-making.

What is an ERP system and what is its purpose: Discover the advantages of an ERP system!

An ERP system brings numerous benefits to the management of a law firm and other organizations in the legal sector. It aids in constant monitoring of client demands, closed cases, and invoice control, while also ensuring the security of this data, thereby contributing to efficient compliance with the General Data Protection Law.

This not only reflects in the smooth functioning of organizational processes but also positions the company better in the market. Investors, partners, and especially clients can perceive a more organized and transparent company in which to invest their resources.

Among the benefits of implementing an ERP system are:

Significant reduction in time invested in delivery control and case closure.
More reliable source of information;
Real-time updates available to everyone;
Transparency for the client;
Increased productivity due to efficient communication of relevant data and information;
Reduction of risks and errors;
Identification of data exchanges between departments and swift blocking of suspicious entries (such as hackers and viruses) through automated firewall usage;
Cost and time reduction in compliance management, financial and tax closure, tax and contribution calculations, and management of assets;
Secure and encrypted storage and sharing of real-time data for clients;
Easy and quick monitoring of the entire process involving purchases, receipts, new contracts, documents, and data, which were previously provided in writing.

If you want to know how you can apply an ERP system to enhance the management of your law firm, contact the experts at Ubistart and learn how to integrate information modules, promoting smoother data and resource management through a single system.