Enterprise resource planning (ERP) has been around some 40 years and it has evolved all along the way of its growth. It started out as manufacturing resource planning (MRP); following that it was referred to as materials resource planning (MRP II). So, what is ERP? It is now commonly referred to as enterprise resource planning, because the enterprise, after all, is what it’s all about. This is all about working smarter, integrating applications, automating the platform, increasing productivity and achieving greater efficiencies. It’s a system that combines all the applications you need, and integrates into one database or repository. This is the communications hub where all of the applications and business tools are stored. In the old days, say 10 years ago, only large corporations could afford to deploy this software system, because of the huge costs involved in doing so. We’re talking hundreds of thousands of dollars.

ERP Software

What is ERP?   

In the last 10 years, we’ve witnessed the changing face of ERP. It has gone from a complicated system which involved on site installation of servers, software and storage, as well as training - to online ERP - known as Software as a Service or Cloud Computing. The change has been revolutionary. When Marc Benioff, the CEO of Salesforce.com predicted 10 years ago that is the path software is taking, his software industry peers just laughed. Today, they are trying to keep up with him. His company has been tremendously successful with software as a service. And, of course, all of the naysayers have joined the rush to Web-based ERP. Small businesses are of course very pleased with these developments, because it gives them an opportunity to implement ERP, something that was too expensive for them to do, in the past.

ERP is a system that provides a management platform for running the entire company, or the “enterprise.” It is a self-contained system that provides for all of your software needs, and then some. You have software application modules for such business processing tasks as accounting and finance, manufacturing, supply chain management, distribution, sales and marketing, planning and scheduling, project management, customer relationship management and more. It’s an all-inclusive system that can save you both time and money. If you were to ask what is ERP to a small businessperson, he or she might respond, “it’s a business changer.”

And indeed it is. Web-based ERP is helping many small businesses to be stronger competitors. It’s also helping them to save time and money, while at the same time being more productive. This software streamlines operations and makes it easier to conduct business; and it can be utilized with just a few employees. This software system has given small businesses the opportunity to transition from out-of-the-box software to something much more dynamic. And small companies are taking advantage of it, in droves. Accessing ERP online means that you need only pay a subscription fee - for use of the software and for the time spent - based on the number of users.

With this software, it’s all about the enterprise - the whole of the company. What is ERP? Go find out about it.

Written by :

tracey boxer