Enterprise Resource planning systems are ERP Software
Enterprise Resource Planning Systems are ERP Enterprise Application Software. ERP is an Enterprise resource planning system. and ERP is a business process management software that allows an organization to manage its business and use an integrated application system to automate many back office functions related to technology, services and human resources.
ERP System software generally integrates all aspects of an operation, including product planning, development, production, sales and marketing, into a single database, application and user interface.
ERP Enterprise Application
Enterprise Resource Planning Systems are a ERP Application
ERP software is considered to be a type of enterprise application that is designed to be used by larger businesses and often requires special teams to personalize and analyze data and handle upgrades and deployment. In contrast, small business ERP applications are generally light business management software solutions tailored for a specific business world or vertical.
Most organizations today implement ERP systems to include ERP applications as a replacement for existing software or because there are no existing systems.
What is ERP (Enterprise Resource Planning Systems are)
When you make an “ERP” search on the Web, the amount of information that is generated can be difficult without being a bit confusing. Every website seems to have its own ERP definition, and an ERP application can be very different from the others. These differences, however, emphasize the flexibility that makes ERP such a powerful business tool.
In order to better understand how ERP solutions can change your business, it helps to better understand what ERP is really and how it works. Here is a brief introduction to ERP and why everyone is talking about it.
ERP is an abbreviation for Enterprise Resource Planning Systems, but it does not shed much light on what ERP is or what it does, even if it is a full name. To do so, take a step back and consider the various operations that are required to run a business such as inventory and order management, accounting, human resources, customer relationship management (CRM) and beyond. At the simplest level, ERP software integrates these diverse functions into a complete system for organizing processes and information throughout the organization.
The central feature of all ERP systems is a shared database that supports multiple functions used by different business units. In practice, this means that employees in different departments (for example, accounting and sales) can rely on the same knowledge for their specific needs.
ERP software also provides synchronized reporting and automation to some extent. Some ERP solutions allow staff to take reports of a system rather than having to keep employees separate databases and spreadsheets that need to be manually consolidated to produce reports. For example, because orders flow automatically to the financial system without manual re-switching, the order management department can process orders more quickly and accurately, and the finance department can close books more quickly. Other common ERP features include a portal or index tab to help employees quickly understand business performance in key metrics.
A Brief History of ERP
ERP was introduced by Gartner1 in 1990, but its roots date back to the 1960s. It was then applied to inventory management and control in the concept manufacturing sector. Software engineers have created programs to track inventory, reconcile their views, and report on the situation. When it came to the 1970s, it turned into material requirements planning (MRP) systems for the timing of production processes.
In the 1980s, MRP grew to include more production processes, some of which they called MRP-II or Production Resource Planning. In 1990, these systems expanded beyond inventory control and other operational processes to other back office functions such as accounting and human resources, and created the stage we knew about ERP.
Today, ERP has expanded to include business intelligence (BI) while also performing “front office” functions such as point of sale automation (SFA), marketing automation and e-commerce. These product developments and success stories from these systems use ERP solutions from companies across a wide range of industries, from wholesale distribution to e-commerce.
Moreover, although “e” in ERP stands for “enterprise”, high growth and medium-sized companies are now adopting ERP systems rapidly. Software as a Service (SaaS) solutions, also called “cloud computing”, have contributed to this growth. Cloud-based solutions not only make the ERP software more reasonable, but also facilitate the implementation and management of these systems. Perhaps more importantly, cloud ERP provides real-time reporting and BI; making it valuable to make managers and employees visible to the business world.
As a result, companies in all sizes and across a broad range of industries are turning to cloud ERP systems. In fact, Forrester predicts that SaaS-based ERP will increase by 21 percent annually through 2015. 2 When you consider the benefits of ERP, it’s easy to see why it’s so popular and why it will continue to grow so quickly.
ERP’s Business Value
In essence, ERP helps employees to overcome obstacles between business units and perform their jobs more effectively. More specifically, an ERP solution:
Gives a global, real-time view of the data to proactively address concerns and improve the company’s concerns
Improves financial compliance and reduces risk with regulatory standards
Lead automates key business operations such as cash, ordering and supply-to-pay transactions.