ERP refers to Enterprise Resource Planning. ERP is the most recent high end software solution. IT (Information Technology) has lent it to the world of business application.
An ERP software solution seeks to make more efficient and integrated processes, operations and information flows in a venture, to synergize the resources of a business namely men, money, material and machine. In other words, Enterprise Resource Planning systems unify all data of a business into an integrated system. A usual ERP will use numerous components of computer software and hardware to get the integration. A main component of most ERP systems is the use of an integrated database to store data for the several system modules.
The role of ERP software in a business is very critical. Most businesses in the world have realized that in a fast changing business environment, it is not possible to make and maintain a custom designed software package that will provide all the requirements as well as also be up-to-date. Understanding these requirements of businesses, lots of companies have designed and developed ERP software that provide an integrated software solution to all the functional processes in a business.
Even though, in the early stage ERP originated in only the manufacturing environment, but at the present ERP software solutions usually cover all the basic business functions and processes of any business, regardless of the nature of the business. A usual Enterprise Resource Planning module includes Manufacturing, Financials, Human Resources, Supply Chain, Warehouse Management, Customer Relationship Management (CRM) and Decision Support System. In veracity, Enterprise Resource Planning modules are multi-functional and venture wide software solutions. The role of ERP software in businesses is very important. All the functional departments that are involved in production or operations can be integrated in a single system using it.
The role of ERP software in a business depends upon the type and nature of business that it serves. These software solutions are designed for the companies that work in a wide range of areas. It combines a huge number of different components into a single unit.
Today, there are three most important ERP tools available that are finance, human resources, and manufacturing. Enterprise Resource Planning softwares can also help a company in managing internal as well as external factors affecting the company. The finance tools allow companies to effectively keep their financial information such as information of the assets, budgets, accounts and cash. The role of ERP softwares a business is also played in the form of getting rid of time consuming activities such as paper management. Enterprise Resource Planning softwares reduces the use of paper work as a result of which the time and money is saved.
ERP softwares have the capability to make a business more profitable as it allows automation of most of the functional business functions and processes across the venture. Knowing this role of ERP software in businesses, more and more corporations in the world are offering customized ERP softwares to their clients that are helping them to make their business more efficient and more productive.
Read about ERP Software Benefits. Also know What Is ERP System. Read about ERP Software Pitfalls.