ERP Software

ERP enterprise resource planning Software

Various applications and technological planning systems have been introduced over the past twenty-five years in attempts to regulate some of the large hurdles facing businesses, such as: acquiring accurate data and timely information.  Of these attempts, the best and most successful has been, without a doubt, Enterprise Resource Planning software.

Enterprise Resource Planning software solutions were designed to streamline, integrate, and facilitate businesses’ operation processes, information flows, and decision-making for the purpose of strengthening its products, services, workforce, and capital. Enterprise resource planning itself is a method of using computer technology to connect a variety of functions—such as accounting, inventory control, and human resources—within a company.

In the beginning, the cost of what was essentially mainframe computers and software programs linking the smaller systems being used by all departments was millions of dollars –effectively limiting this option to large and wealthy companies.  ERP’s evolution has seen a development within the past ten years, however, that has made it much more affordable.  And, in today’s competitive and fluctuating economy, even small businesses view Enterprise Resource Planning software as almost a necessity.

Enterprise Resource Planning software has many features which can benefit virtually any business.  Some of these are: the organization of one company-wide, integrated information system; the integration of systems across all companies under the same management; and the increase of customer service activities. ERP also offers many beneficial uses to businesses.  For example, the same system can predict future demand, order raw materials, establish production and distribution schedules, track inventory, and adjust budgets.

A number of businesses initially struggled to define the profit gained from ERP software.  This was due to the fact that implementation requires a lot of time and manpower and it affects all of a company’s departments meaning production days were lost while the obligatory changes and employee training were taking place. Businesses were also concerned that the newly purchased and finally implemented ERP software would soon be obsolete as technology made a push towards Web-based and internet connections.

In the end, though, both of these concerns turned out to be a boon for smaller businesses. ERP software design shifted direction once again and began to focus on ‘hosted ERP’ or Web-deployed ERP.  This innovation represents an opportunity for smaller companies to store their information on the vendor’s computer, doing away with the need to purchase or implement the enterprise resource planning software.

Written by :

Amy Cruz