Enterprise Resource Planning (ERP)

The acronym ERP stands for Enterprise Resource Planning and refers to creating a
more efficient, leaner, better-automated and integrated business through sophisticated
technology solutions.

ERP software then, is a business management technology solution that businesses and
manufacturers use to collect, store, manage, and communicate data across all functions
of the enterprise. Users interact with the software via visually-collaborate dashboards.
Typically ERP dashboards contain color-coded bar charts and graphs, along with other
visual descriptions of data that give users a fast look at key metrics. It is crucial that
ERP users have access to dashboard metrics because they track and measure data
that leads to business process improvement.

Main Characteristics of Enterprise Resource Planning:

Central database

Enter data once into your ERP solution and it can be accessed by any other user. Think
of it as a common room for stored ERP information.

Operates in Real Time

Once information is placed into the ERP software, it updates throughout the system,
providing up-to-date information in real time for all of its users.

Comprehensive

This means that most of your daily business functions and processes should be able to
operate within the ERP software.

Advantages

Higher productivity
Streamline and automate your core business processes to help everyone in your organization do
more with fewer resources.

Better insights
Eliminate information silos, gain a single source of truth, and get fast answers to mission-critical
business questions.
 Accelerated reporting
Fast-track business and financial reporting and easily share results. Act on insights and improve
performance in real time.

Lower risk
Maximize business visibility and control, ensure compliance with regulatory requirements – and
predict and prevent risk.

Simpler IT
By using integrated ERP applications that share a database, you can simplify IT and give everyone
an easier way to work.

Improved agility
With efficient operations and ready access to real-time data, you can quickly identify and react to
new opportunities.

There are various ways in defining an Enterprise Resource Planning System. This is how it has
been defined by American Inventory and Production Control System (APICS) dictionary:
“Enterprise Resource Planning: An accounting oriented information system for identifying and
planning the enterprise-wide resources to make, ship and account for customer orders.”

Again in Internet encyclopedia, it has defined as “An enterprise planning system is an integrated
computer-based application used to manage internal and external resources, including tangible
assets, financial resources, material and human resources”.

Basically, an ERP combines several traditional management functions into a logically integrated
system and facilitate the flow of information across these functions. It is designed to model and
automate basic processes across the organization over a centralized database and eliminates the
need of disparate systems maintained by various units of the organization.