What Is Enterprise Resource Planning (ERP)?

Enterprise resource planning (ERP) is a management and integration technique used by organizations to manage and integrate the many aspects of their operations. Many ERP software programs are beneficial to businesses because they assist them in implementing resource planning by combining all of the procedures required to operate their businesses into a single system. Planning, purchasing, inventory, sales, marketing, finance, human resources, and other functions may all be integrated with ERP software.

An ERP system enables an organization to mix up an essential business process in order to enhance its efficiency. In the basic definition, ERP is an enterprise-wide information system that integrates and controls the business functions within an organization. ERP intellectually acute, visibility in the mid - 90s and it is still strenuously progressing in the mid - 2000. ERP in a short glance is depicted as the ability to deliver an integrated suite of business applications. ERP tools share a common process of the data model, covering broad & deep operations from the very beginning - which broadly includes operations related to finance, hr, distribution, manufacturing, service and the supply chain.

Successful ERP implementation requires the following:

  1. Professional consultants, skills and experience are the most critical factors for successful ERP implementation

  2. Controlling the scope (prevent scope creep)

  3. Choosing the best business users to work with consultants as one team

  4. Credibility and honesty of the implementation partners