What is ERP or Enterprise Resource Planning ?

Enterprise Resource Planning is significant in any business that is why people involved in the business should know its key components in order to function well in the organization.

Nowadays, businesses have been switching technology in order to cope up with the advancements. It is because technology greatly impacts the business by increasing the productivity making it possible through information management.

Since the existence of internet, businesses need to deal with software and networking technologies to automate some tasks. Likewise, businesses are also using software applications that cover the entire business processes of an organization known as Enterprise Resource Planning or ERP.

This software application helps business in getting detailed perspective of every aspect of business operations for quick sharing of information between personnel and the organization for improving management.

On the other hand, ERP is not merely software but it also encompasses hardware system utilized by enterprise in gathering, storing, retrieving and using information flows. This means that Enterprise Resource Planning can be used in accounting in tracking sales, billing and accounting as well as in inventory. Likewise, the more complex ERP program automates business processes over different supply chain that includes distribution, manufacturing, retail, service and customer.

The functional abilities of this software application are categorizes such as Supply Chain Management as well as Customer Relationship Management that can be used from small to large businesses utilizing different software and hardware configurations. In addition, complex ERP systems can serve multi-national corporations utilizing internet, Extranets and Intranets in operating their businesses.

Intranet is accessible only by organization and does not allow the public for any access. ON the other hand, Extranet gives access to authorized persons on enterprise’s Intranet with username and password.

This means that a dealer can access the Extranet of the manufacturer in viewing product as well as pricing data. However, the proprietary information is limited only to the authorized dealers.

The size of the hardware used in ERP system depends on the size of the organization. Small businesses can use a single microcomputer connected over a LAN or local area network. The microcomputer serves as data storage in such a way that it accepts data inputs, provides different forms of output and at the same time processes the inputs to other applications.

Moreover, a mini-computer is used for larger ERP environments that allow greater storage and operating capability as compared to desktop computers. The connection of the hardware component depends on the system architecture.

Likewise, the connections of the systems to the servers form a layout of the organization. Any business planning to use the ERP system should ensure getting new computer hardware. The hardware component of ERP system is considered as the framework that offers interface that can be used in interaction.

A business considering implementing ERP should ensure choosing the best software components.

In addition, it is also necessary to hire a professional who will oversee the performance of the software, business processes and feasibility. Thorough understanding of ERP will lead to success of the business and any organization ensuring productivity in the workplace through the advancement in technology.