What is ERP?
ERP – Enterprise Resource Planning
An integrated series of software modules and applications designed to run end to end business operations including: Financials, Sales Management, Production Execution and Planning, Purchasing, Human Resources and many others.
What Makes an Enterprise System Different?
What makes an Enterprise System different is the way that it handles the flow of information. From the database tables, to the way that each table is joined to the information in each table, a well designed ERP system is going to put the right information in the right users’ hands at the right time.
Enter it Once, Use it Many Times
Data is usually not entered twice, rather only once and retrievable wherever and whenever it is needed: A one – to – many (infinite) relationship. Data entered becomes information and moved instantaneously across and outside the enterprise to support your business, marketing and manufacturing efforts.
The classic analogy of the old school business system is that of a series of “silos” where data is generated in various areas of the organization, often redundant and not merged to efficiently generate the needed information everywhere that it might be needed. Where these islands of automation exist, different parts of the organization are making decisions inefficiently and often at cross purposes with one another.
Needless to say entering information once and making it available where needed is a far better approach.
The name given to such a system has changed over the years too. From Closed Loop MRP (Material Resource Planning) to Enterprise Resource Planning (ERP) to what some refer to now as an Enterprise Business System (EBS), the concept remains the same. A system that will allow the front office, back office, the field, customers and suppliers to all trade information in a real time manner.
So that‘s it in a nutshell, a system that pretty much traverses the organization that minimizes data entry and utilizes that data where and when it is needed.