Enterprise Resource Planning

Enterprise Resource Planning (ERP) systems integrate (or attempt to integrate) all data and processes of an organization into a unified system

Enterprise Resource Planning (ERP) is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes.

Enterprise resource planning (ERP) is the industry term used to describe a broad set of activities supported by multi-module application software that helps a manufacturer or other business manage the important parts of its business. These parts can include product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP can also include application modules for the finance and human resources aspects of a business

The information made available through an ERP system provides visibility for key performance indicators (KPIs) required for meeting corporate objectives. Typically, an ERP system uses or is integrated with a relational database system.

The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures

Enterprise Resource Planning is an integrated software package that integrates all facets of the business, including planning, manufacturing, sales, inventory, HRIS (Human Resource Information Systems), finance and marketing. ERP software is multi module application that integrates cross functional department centrally

ERP system supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management

By utilizing an ERP system, the sales department, production department, operations management, shipping, financial department, purchasing department all have access to the up-to-date information that is needed to operate smoothly within any manufacturing environment

ERP utilizes ERP software applications to improve the performance of organizations' resource planning, management control and operational control

A typical ERP system will use multiple components of computer software and hardware to achieve the integration of a firm in achieving the objectives.

ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business.

An ERP system is based on a common database and a modular software design. The common database can allow every department of a business to store and retrieve information in real-time. The information should be reliable, accessible, and easily shared. The modular software design should mean a business can select the modules they need, mix and match modules from different vendors, and add new modules of their own to improve business performance

A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.

Although the initial ERP originated in the manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter. Businesses, non-profit organizations, nongovernmental organizations, governments, and other large entities utilize ERP systems.

Goal

The goal of ERP is to improve and streamline internal business processes, which typically requires reengineering of current business processes

Boundary

1)   The boundary of an ERP system is usually small than the boundary of the organization.

2)   In contrast, the boundary of supply chain systems and ecommerce systems extends to the organization's suppliers, distributors, partners and customers.

Components

ERP Software - Module based ERP software is the core of an ERP system. Each software module automates business activities of a functional area within an organization. Common ERP software modules include product planning, parts purchasing, inventory control, product distribution, order tracking, finance, accounting and human resources aspects of an organization.

Business Processes - Business processes within an organization falls into three levels - strategic planning, management control and operational control. ERP has been promoted as solutions for supporting or streamlining business processes at all levels. Much of ERP success, however, has been limited to the integration of various functional departments.

ERP Users - The users of ERP systems are employees of the organization at all levels, from workers, supervisors, mid-level managers to executives.

Hardware and Operating Systems - Many large ERP systems are UNIX based. Windows NT and Linux are other popular operating systems to run ERP software. Legacy ERP systems may use other operating systems.