Enterprise resource planning (ERP) is an enterprise level information system that is designed to coordinate all the resources, information, and activities required to complete business processes. It can be consider as an integrated management of business which covers the techniques and concepts required.
Traditional stand-alone applications were designed for specific needs, with limited functionality, and isolated from other departments. On the other hand, ERP is a concept to consider many departments and combining their unique systems into a single unit, enabling seamless communication between these departments, clients and management.
Initially ERP package was consider a costly affair, so it was only possible for very large Multi National Companies to implement it. Today many companies over the world have gone in for implementation of ERP and it is expected in the near future that 60% of the companies will be implementing one or the other ERP packages since this will become a must for gaining competitive advantage.
Modern ERP Solutions are highly customized, covers almost everything that you need to run your organization whether it may be small enterprise or a full fledged multinational firm. It includes the system starting from the employee’s entry inside the gate to final product to customer for a product manufacturing company. All facilities like customer complaints, accounting & finance, HR, sales & marketing, purchase, inventory, tax details like excise, sales tax etc including export & VAT documentation will also be handled by the system. To maintain all this it has high degree of security/access control. Ultimate result is that it helps in increasing productivity and better profits.
Benefits of ERP
* ERP ensures timely completion of all business activities and increases customer service satisfaction. Helps you to analyze, plan and forecast the business activities by giving you clear view from any angle.
* ERP facilitates information flow across different departments or sections of the organization. It can connect your every business premises and give you consolidated and complete view.
* ERP bridges the gap between business partners, suppliers and customers allowing ongoing collaboration.
* It helps you efficiently and cost-effectively manage Man Power, Money flow, Stock and Machinery.
* With ERP, achieve high security and privacy protection along with the sharing of data by proper access rights and roles definition for users.
* ERP also provides important user friendly information to the company. When changes occur the system will update accordingly, also allowing individuals to work more effectively and decrease redundant data.
* ERP also provides some high-end business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) to enable for better decisions and hence improve business processes.
In today’s dynamic business environment there is a strong need for the business to become globally competitive. The key for success lies in customer satisfaction, through understanding customer needs, and providing quality goods and services in the shortest time possible. ERP is now proved to be a better solution for project management.