ENTERPRISE RESOURCE PLANNING SYSTEM AS BOOM IN BUSINESS
Enterprise resource planning system is the system that integrates human resources, finance, and operations. It is used by large organizations to increase their operational efficiency, competitiveness, and profitability. The Enterprise resource planning system provides information on the organization’s performance along with an overview of its financial position.
ERP solutions are the backbone of every business because they are responsible for managing data from multiple departments. They offer an integrated package which can be customized according to individual needs. Furthermore, ERP solutions have evolved over the last few years to become more user-friendly and offer other important features such as cloud computing or mobile app compatibility.
Enterprise Resource Planning (ERP) is a group of computer applications that help an organization manage their business operations. ERP solutions, coupled with enterprise application integration (EAI), provide a single point of access to all data and other resources in an organization.Enterprise Resource Planning (ERP) is one of the most popular enterprise applications. ERP solutions are designed to automate the complex tasks related to managing an organization’s information and operations for operational efficiency.
An enterprise resource planning system is able to integrate all aspects of the company, including production, sales, distribution, human resources management (HRM), customer service, finance and accounting. It can also provide valuable data about business processes that can be analyzed for decision-making purposes.
ERPs were first developed in the 1960s by manufacturing companies such as General Motors and DuPont to manage their production operations. The use of ERPs has since evolved and adapted to include additional aspects of an organization’s activities, such as supply chain management, customer relationship management (CRM), human resource management (HRM), customer service and marketing, accounting and even human capital planning and knowledge management. The term “enterprise” in ERP is used to denote that this software system is for multiple users within the specific enterprise.
Companies need a system to manage their data and processes. This is because the data from different departments would need to be integrated together. ERP systems help companies accomplish this.
BASIC FEATURES OF ENTERPRISE RESOURCE PLANNING SYSTEM
- capability to integrate data from different departments
- built-in reporting and analytics
- a simple user interface for nontechnical users
- integration with other software that a company may use
TOOLS OF ENTERPRISE RESOURCE PLANNING SYSTEM
An ERP system typically includes a database, a web-based user interface, and one or more software applications. The database stores information about the models of all goods in the organization. The user interface is used to access all information stored in the database through visual displays rather than text commands. Applications are tools that allow business management to configure their data according to their specifications. These applications can be classified into two groups:
• Business intelligence (BI): BI tools provide managers with analytical capabilities for examining data, recognizing patterns, diagnosing problems, and making decisions.
• Process improvement: Tools within this group help managers analyze how productive different aspects of resource planning are.
BENEFITS OF ENTERPRISE RESOURCE PLANNING SYSTEM;
- Gives competitive advantage to the organization
- Eliminate repetitive process
- reduced the need to manually enter information
- Eliminates the possibility of inaccurate data
- Keep the business on track
- Provide help in accurate forecasting
- Helps in departmental collaboration
- Effective cost saving
CONCLUSION
A business’ Enterprise resource planning system is their backbone. It handles the most crucial aspects of the company including its finances, customer data, and inventory.
ERP solutions can be either on-premise or cloud-based. They are often integrated with other enterprise software such as CRM and customer service solutions. An ERP system is able to integrate all aspects of the company, including production, sales, distribution, human resources management (HRM), customer service, finance and accounting. It can also provide valuable data about business processes that can be analyzed for decision-making purposes.
