Enterprise Resource Planning

Topics: Enterprise resource planning, Supply chain management, Business process management Pages: 11 (3574 words) Published: January 21, 2013
Introduction to ERP systems.
The enterprise resource planning (ERP) system is integrated set of programs that provides support for core organizational activities such as manufacturing and logistics, finance and accounting, sales and marketing, e-commerce, payroll and human resources. An ERP system helps the different parts of the organization share data and knowledge, reduce cost, and improved management of business processes.

ERP (Enterprise Resource Planning) is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with a corporate house’s core business processes to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components: Business Management Practices, Information Technology, and Specific Business Objectives. In simpler words, an ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business execution, which influences their decisions in a productive way. At the core of ERP is a well managed, centralized data repository that acquires information from and supplies information to the fragmented applications operating on a universal computing platform. Information in large business organizations is accumulated on various servers across many functional units that geographical boundaries sometimes separate. Such information islands can possibly service individual organizational units but fail to enhance enterprise performance, speed, and competence. The term ERP originally referred to the way a large organization planned to use its resources. Formerly, ERP systems were used in larger and more industrial company types. However, ERP use has changed radically over a period of few years. Today the term can be applied to any type of company operating in any kind of field at any magnitude. Today’s ERP software architecture can possibly envelop a broad range of enterprise functions and integrate them into a single unified database repository. For instance, functions such as Human Resources, Supply Chain Management, Customer Relationship Management, Finance, Manufacturing Warehouse Management, and Logistics were all previously stand alone software applications, generally housed with their own applications, database, and network. Today, they can all work under a single umbrella – the ERP architecture. In order for a software system to be considered ERP, it must provide a business with many functionalities that have features like flexibility, modularity & openness, broadness, the finest business processes, and global focus. Integration is Key to ERP Systems

Integration generally means combining parts so that they work together or form a whole. In information technology, there are several common usages

Integration is an exceptionally significant ingredient to ERP systems. The integration between business processes helps develop communication and information distribution, leading to remarkable increase in productivity, speed, and performance. An ERP system’s key objective is to integrate information and processes from all functional divisions of an organization and merge it for effortless access and structured work flow. The integration is typically accomplished by constructing a single database repository that communicates with multiple software applications, providing different divisions of an organization with various business statistics and information. Although the perfect configuration would be a single ERP system for an entire organization, many larger organizations usually deploy a single functional system and slowly interface it with other functional divisions. This type of deployment can really be...
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