ERP Software

Definition ERP Software

The definition of Enterprise Resource Planning, or ERP, software supports companies’ entire business processes. Most often, ERP software systems is made up of various modules for marketing, sales, field service, production, inventory control, procurement, distribution, delivery, and added business-specific methods. ERP software may also incorporate value stream mapping software, value stream analysis software, as well as integrated value stream mapping, and value stream analysis applications.

ERP software usually implies programming to integrate supply chain management, accounting, inventory control, and other business practices which can offer a lot of financial return on the initial investment. The definition of ERP software applications implies the ability to make real time decisions; more dependable business processes; tighter control over budgets; and better customer relations. ERP software systems tend to be bulky and complex. As a result, most businesses utilize ERP software modules that give specific functionality for the diverse operational components.

While most businesses find it easier to implement a pre-packaged ERP suite of software, than to have one designed from the ground up, there are some questions which need to be asked to make sure the answer is the right one.  For example, what is it worth in time and money for the business to accommodate new software by changing the ways in which it has done business? The answer is not always simple. To begin with, customization to pre-written ERP software systems can be expensive, yet a company may accept a change in its business practices if it is in areas that are providing no competitive advantages. Customized ERP software solutions are designed with one business in mind, making it unlikely any operational processes will have to be changed to fit the new system, but the expense of having software specifically designed is high enough to push some projects over budget. Again, if the business is reaping a definite, competitive advantage from a certain procedure, then it would not make sense to implement a custom solution that would eliminate that advantage.

How much change due to growth and development is the business expected to undergo within the next few years –after all, it would be counter-productive to make massive adjustments to work with ERP software that was only going to be useful for a short period of time.

As requirements evolve with a growing business, further changes to the ERP software will be needed and the packaged ERP suites have more capability to expand with the business. And, yet, growth and development may not necessarily reflect any fundamental changes in the way a company operates.

Written by :

Amy Cruz