Enterprise Resource Planning (ERP) is a suite of software packages and systems that organisations use to manage their core business functions. ERP integrates several different types of business activities into a single system. Most of these activities are day-to-day operations of an organisation, such as finance & accounting, procurement, order processing, project management, supply chain management, Customer relationship management and manufacturing. ERP systems gather information from all different departments of an organisation and store it in a central database. ERP provides businesses with several benefits, that include Improved insight, increased efficiency, lower management and operational costs, enhanced collaboration and reduced risk.
Points to Remember
- ERP systems have a modular architecture wherein different modules handle activities of specific departments. ERP module access information from ERP’s central database and may share the information with each other.
- Most ERP packages incorporate management techniques that are widely accepted and have been proven more effective in producing desired outcomes than other techniques.