ERP Software
Enterprise Resource Planning (ERP) is business management software (integrated application) that a company can use to store and manage data from every stage of business, including:
ERP provides an integrated real-time view of core business processes, using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across the various departments (manufacturing, purchasing, sales, accounting, etc.) that entered the data. ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.
Organizations consider the ERP system a vital organizational tool because it integrates varied organizational systems and facilitates error-free transactions and production. However, ERP system development is different from traditional systems development. ERP systems run on a variety of computer hardware and network configuration, typically using a database as an information repository.
ERP (Enterprise Resource Planning) systems typically include the following characteristics:
- Product Planning, Cost and Development
- Manufacturing
- Sales and Marketing
- Inventory Management
- Shipping and Payment
ERP provides an integrated real-time view of core business processes, using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across the various departments (manufacturing, purchasing, sales, accounting, etc.) that entered the data. ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.
Organizations consider the ERP system a vital organizational tool because it integrates varied organizational systems and facilitates error-free transactions and production. However, ERP system development is different from traditional systems development. ERP systems run on a variety of computer hardware and network configuration, typically using a database as an information repository.
ERP (Enterprise Resource Planning) systems typically include the following characteristics:
- An integrated system that operates in (or near) real time without relying on periodic updates.
- A common database that supports all applications.
- A consistent look and feel across modules.
- Installation of the system without elaborate application/data integration by the Information Technology (IT) department, provided the implementation is not done in small steps.
- Sales forecasting, which allows inventory optimization.
- Chronological history of every transaction through relevant data compilation in every area of operation.
- Order tracking, from acceptance through fulfillment.
- Revenue tracking, from invoice through cash receipt.
- Matching purchase orders (what was ordered), inventory receipts (what arrived) and costing (what vendor invoiced).
- Eliminates the need to synchronize changes between multiple systems—consolidation of finance, marketing, sales, human resource, and manufacturing applications.
- Brings legitimacy and transparency to each bit of statistical data.
- Facilitates standard product naming/coding.
- Provides a comprehensive enterprise view (no "islands of information"), making real–time information available to management anywhere, any time to make proper decisions.
- Protects sensitive data by consolidating multiple security systems into a single structure.
- ERP can greatly improve quality and efficiency of the business. By keeping a company's internal business process running smoothly, ERP can lead to better outputs that benefit the company, such as customer service and manufacturing.
- ERP supports upper level management, providing critical decision making information. This decision support lets upper management make managerial choices that enhance the business.
- ERP creates a more agile company that better adapts to change. ERP makes a company more flexible and less rigidly structured so organization components operate more cohesively, enhancing the business—internally and externally.
- ERP can improve data security. A common control system, such as the kind offered by ERP systems, allows organizations the ability to more easily ensure key company data is not compromised.
- ERP provides increased opportunities for collaboration. Data takes many forms in the modern enterprise. Documents, files, forms, audio and video, emails. Often, each data medium has its own mechanism for allowing collaboration. ERP provides a collaborative platform that lets employees spend more time collaborating on content rather than mastering the learning curve of communicating in various formats across distributed systems.
