Enterprise resource planning, or ERP, is a comprehensive system designed to optimize the productivity and minimize the cost of doing business. ERP is an acronym for enterprise resource planning, and it refers to the integration of enterprise software, management systems, and activities aimed at meeting the strategic objectives of the company. ERP involves a number of steps, each of which is intended to contribute to the achievement of the goals of the company. The following are some of the most important components of the ERP system.
ERP systems usually integrate several elements. They can be classified into three main categories: enterprise-wide application, mid range applications, and unique or custom applications. Enterprise resource planning software is an integrated management of key business processes, usually on real time and mediated through various technologies and software. ERP helps to streamline internal processes and eliminate duplicate and redundant processes. It also helps in decision making and facilitates sharing of information across the enterprise. Integration of ERP systems has made it possible for the growth and expansion of the company.
A flexible approach to ERP software applications is one of the major advantages of ERP systems. They can integrate any existing processes without modification. Integration of several software applications is also very easy. It facilitates the sharing of information and other activities that are not related to the processes. Many organizations have found that ERP solutions with a single database management system have proved to be very useful.
ERP solutions are designed to meet the diverse requirements of an organization. In fact, an organization can use any of the following ERP systems: Microsoft Business Solutions, NetERP, Compiere, The Intuitive Enterprise Solution, and Agresso. All these ERP systems come with their own unique features and capabilities. Organizations need to analyze the requirements of their organization and customize ERP according to their specific needs. However, it is essential to analyze the requirements of the organization before choosing an ERP system.
ERP solutions designed to support specific processes are called modular or web-based ERP solutions. They include ERP systems for marketing, customer service, human resources, finance and accounting. Web-based ERP solutions run on servers hosted by the suppliers and can be easily deployed within a short time. They are very beneficial for organizations that do not require extensive customization and that can get the job done quite quickly.
Modular ERP solutions are designed to integrate the functionality of different departments in a single system. This integration allows smooth workflow and improved communication. Such ERP packages are very useful for multi-faceted organizations that have many departments. They provide complete integration solutions for all the departments and are designed to handle the complexities of enterprise activities like customer acquisition, supplier selection, project management, inventory management, and order tracking. These packages are excellent for midsize to small enterprises with low-end and medium-end processing capacity.
ERP systems also integrate data integrity and can store and manage massive amounts of data in a centralized database. Enterprise resource planning (ERP) software applications are designed to improve the internal functioning of the organization and provide business information in a convenient manner. However, they require comprehensive testing and maintenance to ensure data integrity and security.
Most of the existing ERP systems have been designed to work on a limited domain of functionality. To make them more relevant and usable in today’s competitive markets, various emerging technologies are being used like web analytics, social analytics, behavioral analytics and supply chain analytics. Web analytics helps in deriving actionable insights from large volume of data quickly and at lower costs. Social analytics provides tools to measure customer satisfaction and adapt strategies for improvement. Behavioral analytics measures customer behavior to identify customer needs and suggests remedial steps for future growth and helps in forecasting customer buying decisions.