Enterprise resource planning (ERP) is a software system implemented in an organization, to increase productivity and enable efficient utilization of resources. It is a bunch of various types of softwares that are connected to the different types of departments in the large companies.
ERP implementation utilizes various ERP software applications to improve the performance of organizations for resource planning, management control and operational control.
ERP software consists of multiple software modules that integrate activities across functional departments – from product planning, parts purchasing, inventory control and product distribution, to order tracking. Most ERP software systems include application modules to support common business activities – finance, accounting and human resources.
ERP can save huge inventory cost of the companies. ERP using departmental databases to manage information, such as employee records, customer data, purchase orders and inventory, everyone in the company relies on the same database. This allows employee in different departments to look at the same information.
ERP can increase the productivity of companies. ERP can improve speed and efficiency and more complete access to information. Using this information, company employees and business managers can gain a better understanding of what’s going on in the company so that they make better business decisions.
ERP systems work in real-time, meaning that the exact status of everything is always available. Further, many of these systems are global. Since they can be deployed at sites around the world, they can work in multiple languages and currencies.
The failures of multi-million dollar ERP projects are reported once in a while even after 20 years of ERP implementation. We have identified the four components of an ERP System – ERP software, Business Processes that ERP software supports, Users of ERP systems, and Hardware and Operating Systems that run ERP applications. The failures in one or more of those four components could cause the failure of an ERP project.
About Me
- Nick Mutt
- Nick Mutt is founder and CEO of Elite Informatics, an Internet Advertising Company. He is also an active writer and blogger on business and health topics.
