Written by abhi
April 16, 2011 Hits: 277
ERP Software Systems typically include all operational business functions as well as modules for other functions that can be added. These might be: marketing, sales, product planning, parts and material purchasing, production, inventory control, product distribution, order tracking, human resources, customer relations, finance and accounting. ERP software makes sure all the data gathered is consistent across all functional departments as a way to help ensure the goal an ERP Software System, which is to take this centralized data and then use it to improve and streamline the internal processes of a company. It also gives executives easier access to all business data in real time, which is critical to making better decisions. A company that implements an ERP Software System tends to see increased profit, in addition to lower operational costs.
An ERP Software System can replace a body of independent application, thereby eliminating the external interface. For an ERP Software System to be considered as such it must be made up of more than one system. The actual software of an ERP system is a combination of various modules. An individual module imitates one of the key functional areas of a business. It is most common for businesses to only implement those modules that it will actually need.
Once operational, an ERP Software System is seen as four different segments working together for the purpose of helping a business run more efficiently and more effectively. These segments are: Software made up of modules that automate activities within one area of a company; business processes such as strategic planning; employees of the business who use the software system; and the hardware that runs the actual software.
An important requisite of ERP Software Systems is that they be easy to reconfigure. Because the cost of ERP can run quite high, flexibility will be a selling point to a company deciding whether to make an investment in ERP. If the design of the software system can accept reconfiguration, a company will not lose its initial investment at a later point when changes in the company require changes to the system.
With so many ERP Software Systems on the market, selecting which system to buy is complicated. There are many vendors on the market. Each advertizes its own product as the best one, so business need to do a lot of careful research before making the final decision. The selection is a decision that will have a long term detrimental impact on the business if it is the wrong decision.