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ERPis short for enterprise resource planning.
Enterprise resource planning (ERP) isbusiness processmanagement software that allows an organization to use a system ofintegratedapplications to manage the business and automate manyback officefunctions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.
ERP software is considered anenterprise applicationas it is designed to be used by larger businesses and often requires dedicated teams to customize and analyze the data and to handle upgrades and deployment. In contrast,Small business ERPapplications are lightweight business management software solutions, customized for the business industry you work in.
An ERP System automates and integrates core business processes such as taking customer orders, scheduling operations, and keeping inventory records and financial data. ERP systems can drive huge improvements in the effectiveness of any organisation by:
- assisting you in defining your business processes and ensuring they are complied with throughout the supply chain;
- protecting your critical business data through well-defined roles and security access
- enabling you to plan your work load based on existing orders and forecasts
- providing you with the tools to give a high level of service to your customers
- translating your data into decision making information
ERP Software Modules
ERP software typically consists of multipleenterprise softwaremodules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. A business can use ERP software to manage back-office activities and tasks including the following:
Distribution process management, supply chain management, services knowledge base, configure, prices, improve accuracy of financial data, facilitate better project planning, automate employee life-cycle, standardize critical business procedures, reduce redundant tasks, assess business needs, accounting and financial applications, lower purchasing costs, manage human resources and payroll.
Some of the most common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.
As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in to other business activities and may incorporate modules for CRM and business intelligence, presenting it as a single unified package.
The basic goal of using an enterprise resource planning system is to provide one central repository for all information that is shared by all the various ERP facets to improve the flow of data across the organization.
Top ERP Trends
The ERP field can be slow to change, but the last couple of years have unleashed forces which are fundamentally shifting the entire area.According to Enterprise Apps Today, the following new and continuing trends affect enterprise ERP software:
1. Mobile ERP
Executives and employees want real-time access to information, regardless of where they are. It is expected that businesses will embrace mobile ERP for the reports, dashboards and to conduct key business processes.
2. Cloud ERP
The cloud has been advancing steadily into the enterprise for some time, but many ERP users have been reluctant to place data cloud. Those reservations have gradually been evaporating, however, as the advantages of the cloud become apparent.
3. Social ERP
There has been much hype around social media and how important or not — it is to add to ERP systems. Certainly, vendors have been quick to seize the initiative, adding social media packages to their ERP systems with much fanfare. But some wonder if there is really much gain to be had by integrating social media with ERP.
4. Two-tier ERP
Enterprises once attempted to build an all-encompassing ERP system to take care of every aspect of organizational systems. But some expensive failures have gradually brought about a change in strategy adoptingtwo tiers of ERP.
Depending on your organization’s size and needs there are a number of enterprise resource planning software vendors to choose from in the large enterprise, mid-market and the small business ERP market.
Large Enterprise ERP (ERP Tier I)
The ERP market for large enterprises is dominated by three companies: SAP, Oracle and Microsoft. (Source: EnterpriseAppsToday; Enterprise ERP Buyer’s Guide: SAP, Oracle and Microsoft; Drew Robb)
Mid Market ERP (ERP Tier II)
For the midmarket vendors include Infor, QAD, Lawson, Epicor, Sage and IFS. (Source:EnterpriseAppsToday; Midmarket ERP Buyer’s Guide; Drew Robb)
Small Business ERP (ERP Tier III)
Exact Globe, Syspro, NetSuite, Visibility, Consona, CDC Software and Activant Solutions round out the ERP vendors for small businesses. (Source:EnterpriseAppsToday; ERP Buyer’s Guide for Small Businesses; Drew Robb)
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