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Enterprise Resource Planning

Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a suite of integrated applications—that an organization can use to collect, store, manage, and interpret data from many business activities. ERP Systems can be local based or Cloud-based.

  • Financial & Accounting
  • Banking & Taxation
  • Fixed Assets
  • Purchase & Payable
  • Sales & Receivable
  • Inventory & Warehousing

ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside stakeholders.

Functional Areas

An ERP system covers the following common functional areas. In many ERP systems, these are called and grouped together as ERP modules:

  • Financial Management System
  • Sales & Distribution System
  • Purchase Operation System
  • Inventory Control System
  • Project Management System
  • Service Management System
  • Production Management System
  • Material Requirement Planning

Best Practice

ERP systems incorporate best practices. This means the software reflects the technology's interpretation of the most effective way to perform each business process. Systems offer the flexibility in how conveniently the customer can modify these practices. In addition, best practices reduced risk by 71% compared to other software implementations Use of best practices eases compliance with requirements of industry standard practice. This is because the procedure can be readily codified within the ERP software and replicated with confidence across multiple businesses that share that business requirement.

Implementation

ERP's scope usually implies significant changes to staff work processes and practices. Generally, three types of services are available to help implement such changes: consulting, customization, and support. Implementation time depends on business size, number of modules, customization, the scope of process changes, and the readiness of the customer to take ownership for the project. Modular ERP systems can be implemented in stages.

  • Process Preparation
  • System Configuration
  • Customization
  • Data Migration
  • System Extension
  • System Support
  • System Maintenance
  • System Update
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