Sep 16
3. ERP System Characteristics
- Modular design comprising many distinct business modules such as financial, manufacturing, accounting, distribution, etc.
- Use centralized common database management system (DBMS)
- The modules are integrated and provide seamless data flow among the modules, increasing operational transparency through standard interfaces
- Flexible and offer best business practices
- Require time-consuming tailoring and configuration setups for integrating with the company’s business functions
- Modules work in real time with online and batch processing capabilities
- Internet-enabled
- Financial and business information is often generated automatically by ERP systems based on data previously entered, without further human instructions
- ERP provides business intelligence tools like Decision Support Systems, Executive Information System, Reporting, Data Mining and Easy Warning Systems for enabling people to make better decision and thus improve their business processes
ERP Series Previous Posts
ERP Series vol 1: ERP Definition & Advantages
Free & Open Source Enterprise Resource Planning Software
Tags of this article: accounting,architecture,computing,consistency,corporate,database,distribution,e-commerce,enterprise,erp,finance,financial,How Marketing is done,How to manage Information Systems,human-resource,information,information-management,integration,inventory,maintenance,manufacturing,module,planning,project-management,sales,service,software,transportation,visibility.
Last update September 16, 2007
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Sep 13
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.
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 |
ERP Series Previous Posts
Free & Open Source Enterprise Resource Planning Software
Tags of this article: accounting,architecture,computing,consistency,corporate,database,distribution,e-commerce,enterprise,erp,finance,financial,How Marketing is done,How to manage Information Systems,human-resource,information,information-management,integration,inventory,maintenance,manufacturing,module,planning,project-management,sales,service,software,transportation,visibility.
Last update September 13, 2007
Related Posts
ERP Series vol 4: Planning & SchedulingERP Series vol 2: ERP System CharacteristicsERP Series vol 3: CRMProblem-Solving Tools Series: SWOT AnalysisProblem-Solving Tools Series: Drill Down
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