Technology As Innovator

Sep 13

ERP Series vol 1: ERP Definition & Advantages

Category: How Information Systems are managed Add comments

1. Definition

Enterprise Resource Planning Systems are software systems for business management, encompassing modules supporting functional areas such as

Planning
Manufacturing
Sales
Marketing
Distribution
Accounting
Financial
Human Resource Management
Project Management
Inventory Management
Service and Maintenance
Transportation, logistics and e-Business

The architecture of the software facilitates transparent integration of modules, providing flow of information between all functions within the enterprise in a consistently visible manner. Corporate computing with ERPs allows companies to implement a single integrated system by replacing or re-engineering their mostly incompatible legacy information systems.

ERP Definition

2. Advantages of ERP

Benefit	How to Achieve the Benefit
Reliable information access	Common DBMS, consistent and accurate data, improved reports
Avoid data and operations redundancy	Modules access same data from the central database, avoids multiple data input and update operations
Delivery and cycle time reduction	Minimizes retrieving and reporting delays
Cost reduction	Time savings, improved control by enterprise-wide analysis of organizational decisions
Easy adaptability	Changes in business processes easy to adapt and restructure
Improved scalability	Structured and modular design
Improved maintenance	Vendor-supported long-term contract as part of the system procurement
Global outreach	Extended modules such as CRM and SCM
E-Commerce, e-business	Internet commerce, collaborative culture