About ERP

About ERP
About ERP
Enterprise resource planning (ERP) has been defined as the ability to deliver an integrated sequence of business applications. ERP tools share a common process and data model, covering wide and deep operational end-to-end processes, such as those found in finance, human resource, distribution, manufacturing, service, the supply chain, projects, logistics, plant maintenance, quality, etc.
There are benefits in four areas of businesses: IT cost savings, efficiency of business process, as a business process platform for process standardization and as a catalyst for business innovation. Most enterprises pay attention to the first two areas, because they are the easiest to quantify; however, the two last areas often have the most significant effect on the enterprise.
ERP applications automate and support a range of administrative and operational business processes across various industries, including line of business, customer-facing, administrative and the asset management aspects of an enterprise.
ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs.
That is a tall order, building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse. Each of those departments typically has its own computer system optimized for the particular ways that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other.
That integrated approach can have a tremendous payback if companies install the software correctly.