ERP System

• ERP stands for Enterprise resource planning.
• It is a business process management software.
• ERP allows an organization to use a system of integrated applications to the business and automate many back office functions related to technology, services and human resources.
• It consists multiple software modules that are individually purchased, based on specific needs and capabilities of organizations.
• ERP software integrates all facets of an operation including product planning, development, manufacturing, sales and marketing in a single database application and user interface.

Characteristics

• A integrated system that operates in real time without relying on periodic updates.
• A common database that support all the applications.
• A consistent look and feel across modules.

Advantages

• ERP system helps to integrate all the business functions of every department into a single system.
• It saves time and expenses.
• Management can make decisions faster and with fewer errors.
• ERP can improve quality and efficiency of the business.
• It support upper level management by providing information for decision making.
• It improves data security.
• Protects sensitive data by consolidating multiple security system into a single structure.

Disadvantages

• The implementation of ERP for a small organization can be expensive.
• ERP systems are very complex and some organizations may not maintain ERP system.
• It requires experts to maintain the ERP system.
• It requires training for the employees to work with ERP software.

Examples

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