ERP Software Definition
The definition of ERP Software is an industry term for the software solutions that compile and make available data which manages the operating departments of a business. This data is then used to track: purchasing, orders, performance, inventory, and customer satisfaction. In other words, the key performance indicators of a business are centralized in a way accessible to all divisions. ERP software can also consist of application modules for the financial and human resources facets of a company.
The nucleus of an ERP solution system is module based ERP software. Each module is responsible for automating all the procedures stemming from one, particular functional area within the business, and the success of ERP solutions is due to the fact that these functional areas can communicate and inter-connect in a way that then integrates them all into one, main system.
The definition of ERP software inherently includes the idea that it streamlines and supports business processes at all levels. It also indicates that the system can be utilized by the company’s workforce at every level, from executives, to supervisors, to managers, to employees.
The goal of ERP software is to improve and streamline the internal processes of a company in such a way as to allow business executives to make more informed, real-time decisions which reduce costs and increase profit. As a result, ERP software became commonplace after more and more businesses realized they could not succeed in today’s competitive market without it.
Today, vendors promote literally hundreds of different ERP software solutions, all promising their product will add to a business’ profit margin. ERP software systems are quite expensive, however, so companies are also looking for a solution that will not be too costly neither to purchase nor to implement nor to maintain.
Since there are so many ERP software vendors touting their own solutions as the paramount answer, businesses have to invest time and money researching which one really does represent the best fit. Some experts recommend utilizing consulting groups before making this decision. These specialists assist businesses in their process to find the vendor with the product to fit their size, their industry, and their operational needs, in addition to finding a product that fits within their budget. Undoubtedly, this is a good way to obtain an unbiased opinion. Of course, it is also possible for a company to assign a research team from within. This team can discover a lot of valuable, pertinent information on ERP software through consulting comparable businesses, trade magazine articles and ads, and even the Internet.