What is ERP – Enterprise Resource Planning
Let us understand what is ERP and how it can help business organizations.
With the outset of globalizations and continualadvancement in the way information technology is being used to benefit enterprises today, the wants from the marketplace are also ever-growing. Due to this the complexity of business systems is growing and an capable ERP package should be capable of taking care of these ever shifting demands on the one hand and providing business benefits on the other. It must helpcompanies to envision, respond, and react to these demands to emerge competent and fulfilling in the fiercely competitive business society.
The beginning of the Enterprise Resource Planning systems can be attributed mainly to the improvements done in the preliminary systems to benefactor planning and the executionof manufacturing operations and bring uniformity. ERP has already explored a long route from the initial manual and labor-demanding systems to today’s ahead of time systems that are able of arranging solutions to all types of organizations by supporting intricate business processes. Most of the modules of advanced ERP systems are developed taking into account the process view of the organization.
Enterprise Resource planning can solution most of the business areassuch as Planning, Manufacturing, Sales, Marketing, Distribution, Accounting, Accounting, Recruitment and Payroll Management, Project Based Management, Inventory Management, Service and Maintenance, Transportation, Asset Management, CRM and e-business. The blueprint of the ERP software permitsintegration of all these modules, providing free and quick flow of information between all functions enabling the businessperson to have single view of the the whole business.
The major benefits of ERP systems over other information management systems lie because of their possibility to integrate accounting transaction processes with the workflow of the activity flow. The users keep on capturing the business processes which enable the continuity of actual flow of business activities in sync with the ERP and financial transactions are recorded immediately at the back based on the agreed rules. The transaction that gets recorded once need not be entered again and is accessible across the entire organization globally and to various other modules. Deployment of ERP brings standardization and elaborated internal controls for any organization if properly implemented. Other than, ERP would enforce to the migration of of best practices in all areas, adherence with the local laws and integration needs, adherence to corporate policies and principles, compliance with SOX necessities and support quality drives such as ISO 9000 or six-sigma. The project also triggers the business process redesign in each of the business process area and can lean some processes and bring cost savings and long term sustainability of information systems.
If properly configured and implemented, an ERP System can bring substantial value to any business enterprise and on the other hand a poorly regulated implementation can be the worst agony!
Explore about the interpretation of ERP – Enterprise Resource Planning
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