What Is Enterprise Resource Planning?
ERP is a collection of different types of software that are connected in the various departments of an organization. ERP system software integrates various departmental information of a company in a computer system. Enterprise resource planning is popularly known as ERP. It is a term for incorporated, multiple-component application software package which is designed to support and serve various business functions. Different software can include in an ERP system for order entry, human resources, manufacturing, accounts payable and receivable, warehousing, purchasing and transportation. The different components or modules of the ERP may be able to interface with an enterprise's own software with different degree of efforts. The ERP components may be changed through the proprietary tools of the vendor as well proprietary programming languages.
What are the Different Modules of ERP? Some of the popular modules or components of the Enterprise resource planning are supply chain management, value chain management, customer relationship management or CRM and demand chain management. What is the benefit of ERP? Enterprise resource planning is viewed as an integrated solution of various information across the whole organization. The ERP systems enable different companies to get to know about their business organization. The CRM ERP software help companies to standardize their business process and ensure best practices. The ERP software enable companies to create more efficient processes to serve their customers and thereby maximize their own profits. An ERP is highly necessary in the competitive environment of 21st century globalized economy. ERP can help increase the productivity of a company. Different companies can save on inventory costs using ERP software. ERP uses departmental database to allow storage and retrieval of varied information like customer data, employee records, inventory and purchase orders, etc. ERP allows the availability of the same data to the different departments of any business. Who are the top ERP vendors? There are many ERP vendors. But the top 5 ERP solution vendors are Oracle Corporation, SAP, Baan International, JD Edward and Company and Peoplesoft Inc. These top five ERP vendors constitute 64% of the total Enterprise Resource Planning market revenue. Theses ERP vendors play a very important role in shaping the environment of new enterprises or markets. This is possible with the enlarged product functionality and increased penetration rates. What is the future of ERP? The industry researchers expect larger application of enterprise resource planning in the coming days by all small as well big enterprises. They expect that every company will purchase ERP software as it plays a very important role in profit maximization of the company. |