The emergence of the Internet, evolving customer demands, pressure to accelerate business process, and the need to establish more collaborative relationships with key suppliers and business partners are all pushing organizations towards ERP solution. So, what is ERP?
Enterprise Resource Planning (ERP) is described as an "information system package that integrates information and information based processes within and across functional areas in an organization" [1].
Traditional stand-alone applications were designed for specific customers, with limited functionality, and isolated from other applications. On the contrary, ERP is a business tool that integrates all the applications required by an organization as a whole, and connects the organization to other enterprises in a network form. It is usually compromised of several modules such as: a financial module, a distribution module, or a production module. Today, ERP have added new functions such as supply chain management, product data management, electronic commerce and warehouse management. Thus, ERP opens a window of opportunity for businesses to compete globally, respond to competitive pressures, and increase revenue.
ERP Characteristics & Basic Operations:
ERP facilitates company-wide Integrated Information System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc.
- ERP performs core business activities and increases customer service satisfaction.
- ERP facilitates information flow across different sections or departments of the organisation.
- ERP bridges the gap between business partners allowing ongoing collaboration.
- ERP is a good solution for better project management.
- ERP is built as open system architecture, meaning it allows automatic introduction of the latest technologies such as: Electronic Fund Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video conferencing, E-Commerce etc.
- ERP not only addresses the current requirements of the company but also provides the opportunity of continually improving and refining business processes.
- ERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) for enabling people to make better decisions and thus improve their business processes.
- ERP tracks a wide range of events in an organisation, and plans for future activities based on these events.
Enterprise Resource Planning (ERP) is described as an "information system package that integrates information and information based processes within and across functional areas in an organization" [1].
Traditional stand-alone applications were designed for specific customers, with limited functionality, and isolated from other applications. On the contrary, ERP is a business tool that integrates all the applications required by an organization as a whole, and connects the organization to other enterprises in a network form. It is usually compromised of several modules such as: a financial module, a distribution module, or a production module. Today, ERP have added new functions such as supply chain management, product data management, electronic commerce and warehouse management. Thus, ERP opens a window of opportunity for businesses to compete globally, respond to competitive pressures, and increase revenue.
ERP Characteristics & Basic Operations:
ERP facilitates company-wide Integrated Information System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc.
- ERP performs core business activities and increases customer service satisfaction.
- ERP facilitates information flow across different sections or departments of the organisation.
- ERP bridges the gap between business partners allowing ongoing collaboration.
- ERP is a good solution for better project management.
- ERP is built as open system architecture, meaning it allows automatic introduction of the latest technologies such as: Electronic Fund Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video conferencing, E-Commerce etc.
- ERP not only addresses the current requirements of the company but also provides the opportunity of continually improving and refining business processes.
- ERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) for enabling people to make better decisions and thus improve their business processes.
- ERP tracks a wide range of events in an organisation, and plans for future activities based on these events.
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