What is ERP ?

ERP is acronim of ‘Enterprise Resource Planning’. This website is completely dedicated to explain you what is ERP in best possible ways. ERP is a way to integrate the data and processes of an organization into one single system. Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems use a unified database to store data for various functions found throughout the organization.

The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization – large or SME’s(small or medium scale enterprises).

ERP Modules And Their Integration

Today’s ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella – the ERP system.

Integration is an extremely important part to ERP’s. ERP’s main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow. ERP’s usually accomplish integration by creating one single database that employs multiple software modules providing different areas of an organization with various business functions.

An ideal ERP system is when a single database is utilized and contains all data for various software modules.

ERP System Implementation

Implementing an ERP system is not an easy task to achieve, in fact it takes lots of planning, consulting and in most cases 3 months to 1 year +. ERP systems are extraordinary wide in scope and for many larger organizations can be extremely complex. Implementing an ERP system will ultimately require significant changes on staff and work practices. While it may seem reasonable for an in house IT staff to head the project, it is widely advised that ERP implementation consultants be used, due to the fact that consultants are usually more cost effective and are specifically trained in implementing these types of systems.

One of the most important traits that an organization should have when implementing an ERP system is ownership of the project. Because so many changes take place and its broad effect on almost every individual in the organization, it is important to make sure that everyone is on board and will help make the project and using the new ERP system a success.

Usually organizations use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

Consulting Services – usually consulting services are responsible for the initial stages of ERP implementation, they help an organization go live with their new system, with product training, workflow, improve ERP’s use in the specific organization, etc.

Customization Services – Customization services work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code. While ERP systems are made for many core routines, there are still some needs that need to be built or customized for an organization.

Support Services- Support services include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

Benifits of ERP Systems

There are many advantages of implementing an EPR system; here are a few of them:

  • A totally integrated system
  • The ability to streamline different processes and workflows
  • The ability to easily share data across various departments in an organization
  • Improved efficiency and productivity levels
  • Better tracking and forecasting
  • Lower costs
  • Improved customer service
  • Benefits of ERP software system implementation.

Open Source ERP and Commercial ERP packages.

Useful ERP Resources To Understand What is ERP Better

 

Download SOSE! ERP Guide Free of cost. 10 pages PDF document will give you the complete view of ERP systems.

What is ERP – SOSE! Guide