ERP, which is an abbreviation fEnterprise Resource Planning, is principally an integration of business management practices modern technology. Information Technology (IT) integrates with the core business processes of a corporate house to streamline accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components; Business Management Practices, Information Technology Specific Business Objectives.
In simpler words, an ERP is a massive software architecture that supports the streaming distribution of geographically scattered enterprise wide information across all the functional units of a business house. It provides the business managementutives with a comprehensive overview of the complete businessution which in turn influences their decisions in a productive way.
At the core of ERP is a well managed centralized data repository which acquires information from supply information into the fragmented applications operating on a universal computing platform.
Information in large businessganizations is accumulated on various servers across many functional units sometimes separated by geographical boundaries. Such information islands can possibly service individualganizational units but fail to enhance enterprise wide performance, speed competence.
The term ERPiginally referred to the way a largeganization planned to use itsganizational wide resources. Formerly, ERP systems were used in larger more industrial types of companies. However, the use of ERP 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 of any magnitude.
Today's ERP software architecture can possibly envelop a broad range of enterprise wide functions integrate them into a single unified database repository. Finstance, functions such as Human Resources, Supply Chain Management, Customer Relationship Management, Finance, Manufacturing Warehouse Management Logistics were all previously stalone software applications, generally housed with their own applications, databasenetwork, but today, they can all work under a single umbrella - the ERP architecture.
Inder fa software system to be considered ERP, it must provide a business with wide collection of functionalities supported by features like flexibility, modularity & openness, widespread, finest business processes global focus.
Integration is Key to ERP Systems
Integration is an exceptionally significant ingredient to ERP systems. The integration between business processes helps develop communication information distribution, leading to remarkable increase in productivity, speed performance.
The key objective of an ERP system is to integrate information processes from all functional divisions of anganization merge it feffortless access structured workflow. The integration is typically accomplished by constructing a single database repository that communicates with multiple software applications providing different divisions of anganization with various business statistics information.
Although the perfect configuration would be a single ERP system fan entireganization, but many largerganizations usually deploy a single functional system slowly interface it with other functional divisions. This type of deployment can really be time-consuming expensive.
The Ideal ERP System
An ERP system would qualify as the best model fenterprise wide solution architecture, if it chains all the belowganizational processes together with a central database repository a fused computing platform.
Manufacturing
Engineering, resource & capacity planning, material planning, workflow management, shop flomanagement, quality control, bills of material, manufacturing process, etc.
Financials
Accounts payable, accounts receivable, fixed assets, general ledger, cash management, billing (contract/service)
Human Resource
Recruitment, benefits, compensations, training, payroll, time attendance, labour rules, people management
Supply Chain Management