5 Minute Guide to ERP
This 5 minute guide to ERP will cover what ERP is, the benefits of ERP and how an ERP system works.
ERP stands for enterprise resource planning and refers to a comprehensive software package used in medium and large scale businesses. It covers many functions including finances, manufacturing, project management, marketing and human resources. Unlike a spreadsheet which can only do one thing (e.g. excel), an ERP system enables different experts in specific areas of your company to collaborate on one system – thereby reducing duplication of effort whilst reinforcing the coherence of your organization’s strategy across all departments.
ERP saves you time and money. Firstly, it can save your company a lot of time and money on work that can be done better by someone else. Secondly, given the speed with which technology is changing, it can slow down the constant need for IT investment.
ERP is not simply another spreadsheet application. It’s not a case of “do what you always do”, rather it’s a learning curve which will change how you manage your business over time. Harnessing ERP should be seen as giving your organization a chance to develop into one that is more agile and flexible – in other words it helps them grow into the future they want to see.
How Does An ERP System Work?
An ERP system will likely integrate different systems and software including:
Enterprise resource planning (ERP) is a type of software that helps companies oversee all business processes. This can include inventory management, customer relationship management (CRM), supply chain and manufacturing applications, financial management, and human resources management. Companies typically use an ERP solution to coordinate and automate business processes, which enables businesses to reduce costs while increasing efficiency.
An ERP system might also have the following features:
Dictionary of Digital Business terms – Covering over 200 terms in over 15 topics helping you search a variety of topics.
Converged Solutions – an integrated solution including ERP, Distribution, Retail and Logistics.
Extended ERP – Also known as Enterprise CRM.
ERP Security – The primary goal of security within an ERP environment is to maintain business processes and data with a high level of confidentiality and integrity, while supporting the ability to control access and usage across the enterprise. This is accomplished by controlling users and jobs through identification, authentication, authorization and auditing.
ERTMS – An integrated solution that covers all aspects of the supply chain including production planning, materials & capacity management, order management & shipping control along with warehouse management.
Enterprise Social Network – an application that allows businesses to share information, collaborate and find business opportunities to share.
Enterprise Resource Planning – A whole system approach to managing your organization's IT, such as any other part of your business.
ERP Benefits – ERP benefits include leading to improved productivity, streamlined processes, control and elimination of duplicate functions, improved insight into how all aspects of your business are performing simply because you have access to so much data (and can run complex reports from it).
ERP in Manufacturing – An important component of an ERP solution is manufacturing software. Manufacturing software automates many of the business processes involved in production planning and control, which allows manufacturers to increase efficiency, improve quality and increase productivity.
ERP vs CRM – ERP combines four business management processes into one system:
ERP systems are mainly used in medium-sized and large organizations. However, smaller organizations can also get benefits from an ERP system.
"This article is licensed under the GNU Free Documentation License." It uses material from the Wikipedia article "Enterprise_resource_planning".
Enterprise Resource Planning (ERP) Product Guide: https://www.innovativeerp.com/products/enterprise-resource-planning
https://www.innovativeerp.com/products/enterprise-resource-planning
ERP software usage, benefits and implementation: http://www.theinformationlab.co.uk/blog/2007/03/a-brief-history-of-erp
Possible ERP Systems for SMEs: http://www.cooperindustries.com/-_Solutions_SME_ERP_solution.html
http://www.cooperindustries.com/-_Solutions_SME_ERP_solution.html ERP Systems: http://www.projectcomparison.net/erp-systems/
http://www.projectcomparison.net/erp-systems/ ERP vs CRM: http://resources4uonline.com/blog/?p=2430
ERP, EPM, and CRM software for mid-market business: https://web.archive.org/web/20061220111220/http://newsroom2.cisco.com/dlls/2000/dec00/2-28_crm.html
https://web.archive.org/web/20061220111220/http://newsroom2.cisco.com/dlls/2000/dec00/2-28_crm.html ERP Basics: http://www.myhrhero.com/#!erp-basics
http://www.myhrhero.com/#!erp-basics ERP Case Study: http://www3.itap24.esoxo.com/Articles/Argos.htm
http://www3.itap24.esoxo.com/Articles/Argos.htm ERP: http://finance.about.com/od/erp/a/ERP1-1-Web.htm
http://finance.about.com/od/erp/a/ERP1-1-Web.htm Introduction to ERP: http://www3.itap24.esoxo.com/Articles/ERP-basics.htm
http://www3.itap24.esoxo.com/Articles/ERP-basics.htm What is ERP? http://smallbiztrends.com/2009/05/what-is-erp-and-how-to-choose-right-one.html
http://smallbiztrends.com/2009/05/what-is-erp-and-how-to-choose-right-one.html ERP vs Marketing terms: http://www3.itap24.esoxo.
Conclusion of the article:
ERP is a term often used in business management and it refers to Enterprise Resource Planning. ERP systems are software programs that can integrate tasks between businesses and are used to control all aspects of the business.
What was initially a spreadsheet bug is now a fully-fledged software application that runs the entire business. Well over 500 large businesses use this type of system and around 30% of organizations have implemented it in some way or another. The reality is that every single business has resources being managed, from customer information to employee data and everything else in between. The basic idea behind ERP is that everything needs to be stored in one place, easily accessible by all staff members with the process streamlined as much as possible.
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5 Minute Guide to ERP