WHAT DOES ERP MEAN?
Enterprise Resource planning, more commonly known as ERP over the internet is not an unknown term now. It can be heard in every corporate office. Although the acronym is complex, its meaning is quite simple and is all about integrating the different software systems like management systems, data tracking into a single software system. The domain of ERP is fairly large. It includes the automation of manufacturing, accounting, sales, services, management information and customer relationship information with the help of integrated software. That is all what ERP means.
WHAT DOES ERP MEAN?
The acronym ERP was first used by Gartner Group in 1990. There was a rapid growth in the ERP systems in the 1990s because of certain issue like Y2K and introduction of Euro but the sales sank later in around 1999 after these issues had been solved.
There are many differences in enterprise resource planning softwares but their mission is very much similar: To run the enterprise, the whole of it. This software connects different areas of the company and their external resources that include their clients and partners. ERP provides integrated software for tasks such as accounting, finance, purchasing, inventory, customer relationship management etc. The system is developed into modules. The modules for each task such as finance can be either set-alone or bundled with the system. All the different modules developed are placed on one managing module. This makes the merging of various software programs together to complete an accounting task unnecessary. The ERP system will work as an all inclusive system and will provide all the software applications required to complete the tasks.
The integrated approach pays back very well if the right software is installed properly in an industry. When a customer places a order in the company, a series of paper work begin. These paper works are keyed in and keyed out at various levels in different departments. This results in greater chances of loss and misplacement. No department knows the true current status of the product because each department has its own system designed for its particular needs. There is no way for the account department to check whether the product has been shipped from the warehouse department. The answer to all these issues is ERP.
The software vendors have realized the importance of ERP for industries. There are many ERP vendors who are very much interested in knowing your needs and developing an integrated system for you. Salesforce.com, Microsoft Dynamics Group, NetSuite, Infor ERP SyteLine, Intuitive ERP, BatchMaster ERP, Oracle are among the few famous vendors
ERP may have some disadvantages like cost overhead in migration from the existing system, problem in customization and resistance in sharing information from one department to other. But if deployed properly, it would minimize human intervention during work and hence will lead to fast disposal and better accuracy.
Raghuveer Kaur is an educationalist and a writer. She has been contributing to various blogs and is the M.D. of of an enterprise ContentShala.