Introduction to ERP systems.
The enterprise resource planning (ERP) system is integrated set of programs that provides support for core organizational activities such as manufacturing and logistics, finance and accounting, sales and marketing, e-commerce, payroll and human resources. An ERP system helps the different parts of the organization share data and knowledge, reduce cost, and improved management of business processes.
ERP (Enterprise Resource Planning) is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with a corporate house’s core business processes to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components: Business Management Practices, Information Technology, and Specific Business Objectives.
In simpler words, an ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business execution, which influences their decisions in a productive way.
At the core of ERP is a well managed, centralized data repository that acquires information from and supplies information to the fragmented applications operating on a universal computing platform.
Information in large business organizations is accumulated on various servers across many functional units that geographical boundaries sometimes separate. Such information islands can possibly service individual organizational units but fail to enhance enterprise performance, speed, and competence.
The term ERP originally referred to the way a large organization planned to use its resources. Formerly, ERP systems were used in larger and more industrial company types. However, ERP use has